What is Oil Industry Analysis?

Oil industry analysis is an assessment of the oil industry to make predictions about future trends that may be of interest to oil companies, manufacturers of petroleum products, investors, and government agencies. A firm may conduct an internal oil industry analysis for its own purposes or hire an outside authority to prepare the report, depending on the needs of the situation. People can also access public reports through government agencies and trade publications if they want to view an analysis and cannot afford to commission one.

Analysts have training and experience in the oil industry as well as economics in general so they can prepare a complete and detailed overview. An important aspect of an oil industry analysis is the evaluation and discussion of the industry's history, looking at landmark dates, growth rates, and other topics of importance. This provides a frame of reference for other topics in the report, such as discussions about future growth rates or the impact of regulations.

In the oil industry analysis, the analyst will discuss the market for various oil products, taking special note of changes in growth rates and emerging trends. Any new and emerging products will be discussed in the report, and the analyst will also talk about proposed regulations, treaties, and agreements that might impact the industry positively or negatively. Something like a trade agreement, for example, might result in increased access to oil deposits, while a tax hike might decrease the demand for vehicle fuels.

The oil industry analysis can evaluate major companies in the industry, including refineries, firms involved in extraction, transportation companies, and so forth. It may compare and contrast performance to provide information about which companies might make sound investments or business partners. It can also discuss topics like market penetration, recent successful advertising campaigns, and the oil industry in the news. Events like oil spills can cause problems for the oil industry, and companies want to stay on top of the news so they can prepare responses ahead of time.

The oil industry analysis can help a company make decisions about its product lineup, and may also provide investors with information they can use to decide where and when they want to invest. This document can also be useful for government regulators who want to identify areas of concern that they should pay more attention to. Members of the environmental community may also have an interest in viewing oil industry analysis reports.