Occidental Petroleum - Competitors

Occidental Petroleum Competition

Now Viewing Occidental Petroleum's competition in: Oil and Gas Exploration and Production

Recent Developments

Canadian Production Increased in 2007 - Canadian oil and natural gas production rose to record levels in 2007, according to Statistics Canada. Production of oil and equivalent hydrocarbons rose 4.2 percent in 2007 compared to 2006. Offshore production in Newfoundland and Labrador accounted for 58 percent of the annual increase

Alaska Governor Threatens to Revoke Oil Field Leases - Alaska's governor has threatened to revoke leases for oil fields like Prudhoe Bay if top energy companies refuse to participate in a government natural gas pipeline plan. Exxon Mobil, BP PLC, and ConocoPhillips declined to participate in a plan to start a long-delayed gas pipeline, arguing that they need a long-term tax deal from the state first. Industry experts say that declining oil output is pressuring Alaska to produce gas reserves to avoid a fiscal crisis.

Legislation may Increase Oil Exploration in US - A bill in Congress would encourage oil exploration in the US. The American-Made Energy Act of 2008 would allow some oil exploration within the Outer Continental Shelf and the Arctic National Wildlife Refuge. Royalty revenue paid to the US government would go toward extending current tax credits for alternative and renewable energy sources.

Competitive Landscape

Demand is driven by economic activity, population growth, and energy efficiency levels for residential, industrial, and transportational 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 have an advantage in access to capital, including the ability to buy or merge smaller companies. Small companies compete by focusing on a few geographic areas and developing expertise within those areas. The industry is capital intensive: average annual revenue per employee is about $2 million.

Full Industry Overview For Oil and Gas Exploration and Production

Oil and Gas Exploration and Production Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US natural gas extraction and crude petroleum production is forecast to grow at an annual compounded rate of 1.5 percent between 2007 and 2012.

Oil & Gas Production Growth Volatile

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.