Oil & Gas Accounting Analysis Ercilia Gascar Dr. Rondey Reynolds Advance Communications March 19, 2015

Industry Identification Industry chosen for the accounting analysis –oil and gas industry Huge industry in Texas, the industry Is at a boom because of great number of reserves Early 1900s - the first refinery of the industry was set up Economic drivers in beginning of the 20th century - agricultural products. The standard industrial classification code (SIC) of the industry is 1389 The north American industry classification system (NAICS) code for the industry is 211111. Mainly managed by the texas oil and gas association

Industry Overview The oil and gas development of Texas represents roughly 30% of the total output of the US oil and gas industry Production stats have grown at this state in in the recent years In the year 2013 14th largest oil producing state in the world Texas is the 3rd largest oil producing nation in the world More than 47% of the total land rigs in the country are located in the state of Texas

Industry Overview – Contd. The oil and gas association of Texas -founded in the year 1919 One of the largest associations representing the industry 5000 members representing different aspects of the industry Deals with all the matters that are related to the industry 90% of the producers are members of the association ranging from major to the small independent producers. The activities - legislation, legalization and regulation of the different matters of the industry Priority - solving the problems of the industry The media relation and The public affairs of the industry - dealt by Texas Oil & Gas Association (TXOGA)

Industry Development The development increased the population and urbanization in the state New wave of development to all the major cities of the state Level of investments in the industry increased Improved the overall demographic conditions of the state Helped in coping up with the affects of depression The oil boom and industrialization led to refineries The industrialization increased in the state after the Oil Boom

Consumer Market Pivotal role in the increasing fortune of the state Very profitable Positive impact on the overall market conditions One in the seven jobs created in the country are in the state of Texas The unemployment rate in state is less than unemployment rate of the country Pivotal role in the increasing fortune of the state

Competitor Information Competition - the internal and the external. The internal competition - states that are part of the United States and are oil producing regions. The external competition - foreign states In spite of high competition, industry has been able to maintain their identity in the global market

Works Cited Weaver, Jacqueline Lang. Unitization of Oil and Gas Fields in Texas: A Study of Legislative, Administrative, and Judicial Policies. Routledge, 2013. Retrieved from https://books.google.com/books?hl=en&lr=&id=3QuPAQAAQBAJ&oi=fnd&pg=PP1&dq=oil+and+gas+industry+Texas&ots=QIHxTz1ufu&sig=54eGbJ60KYCOL4kZ5AB7nVFhoTE#v=onepage&q=oil%20and%20gas%20industry%20Texas&f=false Maresh, Michelle, and David E. Williams. Oil industry crisis communication.The handbook of crisis communication 31 (2012): p. 285. Retrieved from https://books.google.com/books?hl=en&lr=&id=mt0F2LBNPa8C&oi=fnd&pg=PA285&dq=Texas+oil+industry+&ots=DoO6akMWHH&sig=FCDlCJvoc9kwMn5jOJxxzffsAQ0#v=onepage&q=Texas%20oil%20industry&f=false