Industry Report - Starting a New Business Chapter
The Oil and Gas Extraction industry is characterised by high barriers to entry. These relate to initial capital outlay, market share concentration, regulatory compliance, and the cost and variability of exploration activities. Initial capital outlay includes the machinery and labour required from the prospecting phase through to exploration, mining, extraction and production. In addition to capital, firms require permits and consents to undertake these processes. New entrants must prove through a work program that their operations will not adversely affect people or the environment in which they operate. The market shares held by larger players in the industry also restrict the ability of new entrants to establish sufficient scale to reduce average costs and compete based on price...purchase to read more.
Additional Insights for the
Oil and Gas Extraction
Industry
IBISWorld has determined the most important Key Success Factors for the Oil and Gas Extraction 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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