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

2. 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
Mainly managed by the texas oil and gas association

3. 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 th 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

4. 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)

5. 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

6. 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

7. 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

8. Works Cited
Weaver, Jacqueline Lang. Unitization of Oil and Gas Fields in Texas: A Study of Legislative, Administrative, and Judicial Policies. Routledge, Retrieved from
Maresh, Michelle, and David E. Williams. Oil industry crisis communication.The handbook of crisis communication 31 (2012): p Retrieved from