Digging deep: Large-scale LNG production and exports have supported industry revenue

The Oil and Gas Extraction industry has performed moderately well over the past five years. Changes in oil and gas prices, exchange rate movements, domestic and export demand for oil and gas, and annual production volumes all influence the industry's performance. Industry output has expanded over the past five years, while world oil and natural gas prices have declined. Industry output, as measured by barrels of oil equivalent (BOE), is expected to increase at an annualised 10.7% over the five years through 2017-18. However, industry revenue growth has failed to match these increases, and is expected to rise at an annualised 2.0% over the five-year period. This includes an anticipated revenue increase of 16.6% in the current year, to total $45.8 billion...read more.

Industry Statistics & Market Size
Revenue
$46bn
Annual Growth 13-18
2.0%
Forecast Growth 18-23
Profit
Employment
23,980
Businesses
399

Industry Threats & Opportunities

  • Industry output has expanded while world oil and natural gas prices have declined
  • Industry revenue has grown moderately due to higher volumes offsetting pricing falls for oil and gas
  • Profit is expected to increase over the next five years due to pricing and export demand growth
  • Industry Report - Starting a New Business Chapter

    There are substantial entry barriers to the industry for new companies, particularly those that reach the oil and gas extraction phase. These barriers include the high-risk nature of oil and gas exploration and development, the large amounts of capital required to bring fields into production. In addition, contract and marketing expertise is required to negotiate and deliver long-term supply agreements to reduce demand risk. In addition to these factors, industry projects must satisfy the requirements of lengthy regulatory approvals processes, including environmental approvals...purchase to read more.

    Additional Insights for the Oil and Gas Extraction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil and Gas Extraction Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Downstream ownership links
  • Availability of resources
  • IBISWorld analysts also discuss how external factors such as World price of natural gas and World price of crude oil in the Oil and Gas Extraction industry impact industry performance..

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    What's in this report

    What is the Oil and Gas Extraction Industry?

    Industry firms mainly produce crude oil, natural gas or condensate by extracting oil and gas deposits. These companies may also treat natural gas to produce purified natural gas or liquefied hydrocarbon gases, or operate natural gas absorption or separation plants. Some industry firms also produce liquefied natural gas and liquefied petroleum gas.

    Industry Products
  • Crude oil and condensate
  • Liquefied petroleum gas
  • Coal seam gas
  • Natural gas
  • Shale oil and gas
  • Industry Activities
  • Crude oil mining
  • Oil shale mining
  • Natural gas extraction
  • Petroleum gas extraction
  • Coal seam gas mining
  • Liquefied natural gas (LNG) production
  • Liquefied petroleum gas (LPG) production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of natural gas
  • World price of crude oil
  • Demand from gas supply
  • US dollars per Australian dollar
  • Demand from petroleum exploration

  • Current Performance
  • Revenue and profit
  • Strong LNG

    output growth

  • Unconventional resources
  • Oil production

    and imports

  • Chart: Revenue Growth

  • Industry Outlook
  • World prices

    and profit

  • LNG export growth
  • Industry challenges
  • Table: Oil and Gas Extraction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil and Gas Extraction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Gas Supply
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Mining Support Services
  • Petroleum Exploration
  • Pipeline Transport

  • Products & Services
  • Natural gas
  • Crude oil and condensate
  • Coal seam gas
  • Liquefied petroleum gas
  • Shale oil and gas
  • Chart: Oil and Gas Extraction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • LNG export markets
  • Crude oil export markets
  • Domestic petroleum refineries
  • Domestic gas industries
  • Domestic LPG markets
  • LPG export markets
  • Chart: Major Market Segmentation for the Oil and Gas Extraction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Oil and Gas Extraction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil and Gas Extraction Industry

  • Industry Globalization
    Woodside Petroleum Ltd, Chevron Australia Holdings Pty Ltd, BHP Billiton Limited, Santos Ltd, ExxonMobil Australia Pty Ltd, Shell Energy Holdings Australia Limited,
  • Table: Woodside Petroleum Ltd - financial performance
  • Table: Chevron Australia Holdings Pty Ltd - financial performance
  • Table: BHP Billiton Limited - financial performance
  • Table: Santos Ltd - financial performance
  • Table: ExxonMobil Australia Pty Ltd - financial performance
  • Table: Shell Energy Holdings Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil and Gas Extraction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Oil and Gas Extraction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Production Volume BOE (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrels Of Oil Equivalent (Boe)
  • An energy unit approximating the energy released from burning one barrel of crude oil (about 160 litres).
  • Condensate
  • A type of light crude oil that forms into a liquid from its gas state after being released from high-pressure wells.
  • Fracking
  • A method used to extract oil and gas from shale rock by pumping pressurised water into drilled wells.
  • Liquefied Natural Gas (Lng)
  • Formed by cooling natural gas to a very low temperature, at which point it becomes liquid.
  • Liquefied Petroleum Gas (Lpg)
  • Consists of naturally occurring propane and other gas kept under pressure to maintain it in a liquid state.
  • Natural Gas
  • Naturally occurring gases consisting primarily of methane, but also including small amounts of heavier hydrocarbons such as propane and butane.
  • Oilfield
  • An underground or undersea deposit of oil contained within a stable geological formation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil and Gas Extraction market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Oil and Gas Extraction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Oil and Gas Extraction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Oil and Gas Extraction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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