What is Oil Industry Analysis?

Mary McMahon
Mary McMahon

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.

A pumpjack oil well.
A pumpjack oil well.

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.

A drill rig is used to drill for oil.
A drill rig is used to drill for oil.

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.

Oil industry analysts keep abreast of regulatory changes that may affect oil tanker operations.
Oil industry analysts keep abreast of regulatory changes that may affect oil tanker operations.

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.

Oil industry analysts monitor refinery production to see if regulatory, technical, or meteorological factors will affect oil supplies.
Oil industry analysts monitor refinery production to see if regulatory, technical, or meteorological factors will affect oil supplies.
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a wiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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Discussion Comments


I'm keeping one eye on the oil and gas industry because I really really want to see the world one day, and I'm worried air tickets will skyrocket if we reach the end of cheap oil in the next few years.

It's already more expensive than it was a decade ago. Although you can still get some good specials.

But, I know one of the major costs of flying is the fuel, so gas prices affect plane ticket prices like nothing else.

I know it affects a bunch of other things as well, and I feel kind of selfish about the polluting effects too.

But, I really want to see Europe one day. I hope I manage to scrape together the cash before it's too late!


@pleonasm - That's not even taking into account another thing that the oil industry affects: plastic. Even if you take shipping out of the equation, which, nowadays, is rarely possible, you still have to factor in the plastics industry.

Almost everything requires some kind of plastic, whether it's parts or packaging.

And most plastic comes from oil as well.

In my mind, it's even more reason to try and shop at farmers' markets, where you don't have to worry about packaging, or much shipping either.


The oil industry just affects so many different aspects of life, I think that an oil industry analysis pretty much touches on almost everything.

It always seems to me like if there is something going on there, it affects all the stocks in the market.

I mean, you need oil in order to go places, which means any industry which needs to ship goods is affected by oil prices, whether for good or for bad. And that's a lot of different industries.

And that's not even considering the affect it has on purchasing power.

I mean, every time the gas prices go up, people start being more cautious with everything they buy.

I guess I just mean oil industry statistics have so many applications it's kind of crazy.

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