1. Oil and Gas
Industry Analysis

2. Oil and Gas Industry Analysis Overview
History
Industrial Growth
Government Regulations
A Leading Business in Oil and Gas Industry
Trends

3. Brief History
The history of oil and gas expands back thousands of years. Ancient cultures used crude oil as a substance for binding materials and as a sealant for waterproofing various surfaces. For example, around B.C., techniques for lighting consisted of a censer or the fire pan filled with oil made of a certain volatility so that it would burn slowly and not cause uncontrollable flames or explosions. Over time this form of energy evolved into today’s kerosene lanterns. The invention of the kerosene lamp in the mid 1850’s led to the establishment of the first U.S. oil company, the Pennsylvania Rock Oil Company. Today, oil and gas industry was born in the late 19th century. Oil and gas have played an important role throughout world history. Today’s civilization are built on the back of the energy industry.

4. Demand is driven by economic activity, population growth, and energy efficiency for residential, industrial, and transportation uses of oil and gas. Profitability of individual companies is driven by the success rate of new wells drilled and the ability to increase production from existing wells. Large companies benefit from greater access to capital, which enhances their ability to secure drilling rights and acquire smaller companies. Small companies compete by focusing on, and developing expertise in, a few geographic areas. The cost of energy has become a significant factor in the performance of economy of societies. Energy management involves utilizing the available energy resources more effectively that is with minimum incremental costs. The North American energy renaissance, driven by the shale revolution, is facing its first major challenge. Since July 2014, West Texas Intermediate and Brent prices have fallen more than 40 percent, potentially postponing higher cost new shale and deep-water projects in North America.
Industrial Growth

5. Industrial Growth Continued
On a more global stage, according to the International Monetary Fund’s January 2015 World Economic Outlook issue, global economic growth was 3.3% in 2014, unchanged from The IMF estimated that the Eurozone’s gross domestic product (GDP) grew by 0.8% in 2014 compared with a contraction of 0.5% in 2013, US growth was 2.4%, up from 2.2% in 2013, while Chinese growth slowed from 7.8% in 2013 to 7.4%. The average GDP growth rate for emerging markets and developing economies fell to 4.4%, compared with 4.7% in

6. Government Regulations
Our global economy could not function without the oil and gas industry enabling it to extract and refine resources but there are a lot of effects that come with allowing the industry to extract and refine the resources the industry gathers. As a result, the government heavily regulates the oil and industry. The United States established the Environmental Protection Agency in the wake of elevated concern about environmental pollution on December 2, The EPA was consolidate in one agency from a variety of federal research, monitoring, standard- setting and enforcement activities to ensure environmental protection. extraction ( information-sector/oil-and-gas-extraction-sector- naics-211) oil spills and-preparedness-regulations, renewable fuels fuel-standard-program.

7. A Leading Business in Oil and Gas Industry
Royal Dutch Shell is a public limited company registered in England and Wales and headquartered in The Hague, the Netherlands. Shell is the fourth largest company in the world as of 2014, in terms of revenue ($421,105,000,000.00) and one of the six oil and gas "supermajors". Shell is one of the world’s largest independent oil and gas companies in terms of market capitalization, operating cash flow and production. Shell aims for strong operational performance and productive investments around the world. Shell Oil is aggressive as it explores for, produces, and markets oil, and natural gas, and produces and markets chemicals. The company's Shell Exploration & Production unit focuses its exploration on the deep-water plays in the Gulf of Mexico. Shell Oil partners with Saudi Aramco in a US refining and marketing venture (Motiva) and owns Motiva's sister company Shell Oil Products US. Shell Oil also produces petrochemicals (Shell Chemical) and liquefied natural gas (Shell US Gas & Power) and markets natural gas and electricity. Shell Oil's parent, Royal Dutch Shell, vies with Exxon Mobil) to be the world's #1 integrated oil company in terms of revenues.
A Leading Business in Oil and Gas Industry

8. A Leading Business in Oil and Gas Industry Continued
Shell is continuously seeking to improve their operating performance, with an emphasis on health, safety and environment, asset performance and operating costs. For 2015, they will continue to focus on the three key priorities set out in 2014: improving our financial performance, enhancing our capital efficiency and continuing our focus on project delivery. Today’s lower oil prices are creating opportunities to reduce our own costs and to take costs out of the supply chain.

9. Trends
 The U.S. Energy Information Administration estimates that in 2014 the increase in the global supply of petroleum and other liquid fuels was almost twice the increase in consumption. That was a recipe for lower prices and shrinking profits. And it presents a troubling outlook for oil giants such as ExxonMobil, BP, Total, Chevron, and Shell that invested tens of billions of dollars in oil exploration when prices were high but did not enjoy a concomitant boost in production or profit margins. Though they’ve slimmed down by shedding unprofitable units and cutting back on investment more recently, these companies still face increased competition from an array of state-owned oil companies and independents. To adjust the ‘super majors” are shifting their primary focus now on driving capital and operating efficiency to preserve their margins and maintain the reinvestment rates necessary to grow production. Producers and refiners have harnessed new technological advances, such as digitization, robotics, and analytics, to squeeze out higher volumes with less investment.