- Houston, TX US US
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Oil & Gas Industry Analysis
SIC Code 1389
The Oil & Gas industry include the global processes of exploration, extraction, refining, transporting, and marketing petroleum products. Oil is the raw material for many chemical products including solvents, pesticides, and plastics. Oil is very important to the maintenance of industrial civilizations. Oil also accounts for a large portion of the world’s energy consumption. It is the world’s biggest industry in terms of dollars.
There are different factors that can affect the prices of oil & gas. Downward pressures on oil and gas prices results in lower oil and gas drilling activity and investment throughout the oil and gas industry. Oil prices are similar in most parts of the world because oil is a fully tradable commodity but gas prices are determined by regional factors. In North America these factors include available gas storage capacity and winter temperatures. Major oil and gas producing nations and companies always collaborate to control the supply and the price of oil in the international markets.
The United States government provides a heavy public subsidy to oil & gas companies. This includes major tax breaks at almost every stage of oil exploration and extraction including the costs of oil field leases and drilling equipment. Environmental regulations occur at over 860,000 sites in 33 states. Waste and ground water protection requirements come from the state level for exploration and production operations. Water discharge requirements are mostly federal requirements and air quality regulations are a mix of state and federal requirements.
The leading businesses in the industry in terms of revenue are Shell, Exxon, BP, Sinopec, China National Petroleum Corporation, Chevron, and Conoco Phillips.
From the mid 1980s to September 2003 the inflation adjusted price of a barrel of crude oil was usually under $25 a barrel. During 2003 the price rose above $30. By 2005 it had reached $60 and by 2008 it was $147.30. These price increases were caused by the falling value of the U.S. dollar, a decline in petroleum reserves, Middle East tension, and oil price speculation. The recession of 2008 caused the prices to go from $147 to $32 by December because of less demand for energy. Oil prices stabilized by October 2009 and established a trading range between $60 and $80.
The oil & gas industry use different operational trends to help improve their product. One trend is software. Now companies can manage and track all the data coming from all over the oilfield on a web based visualization platform. Another trend is using technology to get access to oil that wasn’t able to be accessed before. Other trends that have recently been used are working in remote environments and minimizing the harm of hydrocarbons.
When it comes to marketing, shrinking margins are forcing companies to look for ways to access new markets and grow their businesses while also identifying opportunities to reduce marketing costs. A 1 percent improvement in pricing can lead to an 8 percent improvement in operating profit.
The oil and gas industry has the most problems during the winter season. The cold weather causes a demand for more energy but the weather makes it hard to produce gas. In some areas the wells freeze making it hard for drillers to keep gas flowing.
Consumer Market Data
A total of 56,982 people traveled offshore to work for the gas and oil industry. Female employees made up 3.75 percent of the total offshore population. The average age of the offshore workforce was 41.1 years old. There was a 13.7 percent rise in the number of workers under the age of 30. Average hourly earnings are $36.90 and average weekly hours are 42.9.
Oil accounts for a high percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, to a high of 53% for the Middle East. The world consumes 30 billion barrels of oil a year. The United States consumed 25% of the oil produced in 2007.
The major businesses in the industry are Shell, Exxon, BP, Sinopec, China National Petroleum Corporation, Chevron, and Conoco Phillips. All companies serve areas worldwide except for Sinopec (China) and the China National Petroleum Corporation. Shell has been in business since 1907, Exxon since 1999, BP since 1909, Sinopec since 2000, China National Petroleum Corporation since 1988, Chevron since 1984, and Conoco Phillips since 2002. All companies are at the top of the Fortune Global 500 list.
5600 Chimney Rock Rd. #110
Houston, TX 77081
08/13-present Texas Southern University, Houston, TX
Pursuing a Bachelors degree in Business Management
08/08-05/11 Contra Costa College, San Pablo, CA
Associates degree in Business Management
08/11-present Part Time Supervisor, UPS, Richmond, CA and Houston, TX<dir> </dir><dir>
Manage people of different age groups
Was the youngest supervisor when promoted
Manages hours of employees in a daily operation
Train employees in proper job methods</dir>
Manage 7-10 employees in my work area