History Of Oil And Gas Industry

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Industry Overview
The Oil & Gas Industry within the Energy Sector includes Oil and Gas exploration and Production, Oil and Gas Refining, Storage and Transportation. The three major focus areas of the oil and gas industry is firstly; exploration and production of oil and natural gas known as the “upstream”, secondly; transportation, storage, and selling refined oil and gas products called the “midstream’, and thirdly; refining and promoting of crude oil or “downstream”. The major international oil and gas companies (Exxon Mobil, Conoco Phillips, Chevron, Royal Dutch Shell, British Petroleum and Total S.A.) also known as “supermajors” are vertically integrated which means they are involved in all aspects of the upstream, midstream, and downstream activities. All the “supermajors” have around a 6% of global oil and gas reserves and market capitalization of approximately $100 billion or greater (Supermajor Companies). Saudi Aramco is the largest Oil and Gas Company in the entire industry. As Oil and Gas being scarce non-renewable natural resources and massive demand on the planet, yielding profits for oil and gas companies.
Price fluctuations affect almost all the industries around the globe and industries within oil and gas production & marketing. The increase in Oil & Gas prices will directly force to inflate the daily commodities, food industry and transportation in major. According to Standard & Poor’s, energy spending will continue to stay at high levels for the next 25 years with projections of global energy demand to increase by approximately 1.5% annually between 2005 and 2015, and approximately 0.9% annually between 2015 and 2035. To be able to meet this increase in demand an estimated $26 trillion (in 2008 dollars) of globa...

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...rket share (Please refer to Figure: 6). The increasing opportunity and market growth is promising in the countries located in sunbelt region like India, China, Mexico and Australia (Please refer to Figure: 7) as all these countries are highly populated and in need of power. By 2020, demand for solar installation will reach to 84 GW globally and China alone could add up-to 10 GW of PV installations each year, as announced by the Chinese authorities (global market outlook).
As the capital investment is less and TransCanada is already into this industry, we recommend them to invest and expand their business in this sector. They have the opportunity to become industry leaders by implementing their innovative technologies. Also, by penetrating into the global markets the company can use this opportunity to unleash their potential and establish their footprints globally.

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