Taking a spill: Plummeting crude oil prices have caused heavy revenue declines

Firms in the Oil and Gas Extraction industry supply crude oil mainly for export markets, or natural gas for domestic industrial, commercial and residential users. All of New Zealand’s oil and gas extraction takes place in the Taranaki Basin, in the Taranaki region. The industry’s small size on a global scale and concentration in one geographic area makes it economical for a small number of firms to hold a large share of the market. As a result, the industry’s major players, Todd Energy, Shell, OMV, Greymouth and Origin Energy, contribute to the majority of industry revenue.Over the past five years, the industry has been negatively affected by mostly falling crude oil prices, particularly in 2015 and 2016, when oil prices fell sharply...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
-8.5%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
931
Businesses
49
Market Share of Companies

Industry Threats & Opportunities

  • The industry has been negatively affected by mostly falling crude oil prices
  • The value of imports and exports have both declined due to falling oil prices
  • The industry is anticipated to enter a period of consolidation among the major players

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    Industry Report - Industry Products Chapter

    The industry derives revenue from extracting and selling oil and gas. Industry firms primarily mine oil and gas from offshore drilling operations, onshore fields and hydraulic fracturing. Output is then sold to wholesalers, export markets, refineries, heavy industries and other users.Offshore gasWhile output from each individual gas field fluctuates each year, gas extracted offshore often composes the bulk of revenue derived from gas. The Pohokura gas field, which is owned by Todd Energy, Shell and OMV, makes up the largest share of total gas output, at approximately 37%. Pohokura is located about 4 kilometres off the coast of Taranaki, while the Maui gas field, the second largest producer in volume terms, is about 35 kilometres offshore from Taranaki. Off...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
  • Availability of resource
  • Must comply with government regulations

    • IBISWorld analysts also discuss how external factors such as World price of crude oil and US dollars per New Zealand dollar in the Oil and Gas Extraction industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Oil and Gas Extraction in New Zealand Industry?

    Industry players extract gas and oil deposits to produce mainly crude oil or natural gas. The industry excludes firms that refine crude oil into petroleum-based products.

    Industry Products
  • Offshore gas
  • Onshore gas
  • Oil
    • Industry Activities
  • Crude oil extraction
  • Natural gas extraction
  • Petroleum gas extraction
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • World price of crude oil
  • US dollars per New Zealand dollar
  • World production of oil
  • Demand from fossil fuel electricity generation

    • Current Performance
  • Gas
  • Oil and trade
  • Profit and participation
  • Chart: Revenue Growth

    • Industry Outlook
  • Structure and divestment
  • Electricity generation
  • 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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Gas Supply in New Zealand
  • Petroleum Product Wholesaling in New Zealand
  • Fossil Fuel Electricity Generation in New Zealand

    • Key Selling Industries
  • Mining Support Services in New Zealand
  • Pipeline Transport in New Zealand

    • Products & Services
  • Offshore gas
  • Onshore gas
  • Oil
  • Chart: Oil and Gas Extraction Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Industrial users
  • Energy generators
  • Export markets
  • Other markets
  • Domestic transport operators
  • Chart: Major Market Segmentation for the Oil and Gas Extraction Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Royalties
  • Other
  • 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

    Major Companies

    Todd Corporation Limited, Shell Investments NZ Limited, OMV New Zealand Limited, Greymouth Petroleum Holdings Limited, Origin Energy New Zealand Limited,
  • Table: Todd Corporation Limited - financial performance
  • Table: Shell Investments NZ Limited - financial performance
  • Table: OMV New Zealand Limited - financial performance
  • Table: Greymouth Petroleum Holdings Limited - financial performance
  • Table: Origin Energy New Zealand Limited - financial performance

    • Operating Conditions

    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

    Key Statistics

    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)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Crude Oil
  • An unrefined form of petroleum.
    • Geothermal
  • Heat produced from the Earth's surface.
    • Natural Gas
  • A gas that occurs naturally underground, which predominantly comprises methane.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Oil and Gas Extraction in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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
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    This report on Oil and Gas Extraction in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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