The oil & gas industry has always fascinated me, due to the sheer size of operations, intensity and multidisciplinary coverage.  Very few industries are as vertically integrated or as geographically diverse, which to me are key attraction points for they offer the opportunity to experience the majority of aspects making up the modern business administration philosophy as nested in divergent cultural contexts.  Coming from a mechanical engineering background and having worked in the oil & gas industry while currently undergoing my MBA training, the oil & gas industry offers a unique opportunity for me to experience the best of the two worlds.

One of the main drivers of this growth in the past five years was the rapid modernization of the BRIC nations (Brazil, Russia, India and China).  Granted that any slowdown in the growth of these nations will have an adverse effect on the growth of this industry, the GPD growth of these nations is expected to continue growing although at a slower rate than in previous years, continuing to represent a potential opportunity for the industry.¹ Another drivers for increased price and thus increased production are ²:

• the fast emerging middle class in India and China and the growth of in motor vehicle use
• the rising pressure on developing countries to fund measures aimed at combating increased poverty

The industry, although has seen its revenue slashed by 39.7% in 2009, has shown an average rate of growth of about 1.3% since 2008 with a forecast of a 3% growth rate in 2013 alone, revenue has risen from $4.2 trillion in 2008 to an expected revenue of $4.5 trillion in 2013.  This growth is expected to grow at an annualized rate of 2.5% to $5.1 trillion over the next 5 years to 2018. More importantly, profit and employment are expected to grow over the same period with the former growing at an annualized forecast rate of 2.9% while the latter at an average annual rate of 1.5% to 1.4 million people. This growth is driven by the rising production of oil and gas and the increased difficulty of extracting oil.³

In addition to the above forecast of growth, the industry as a whole is characterized as being ⁴:

• low concentrated
• highly competitive and the trend is increasing
• high barriers to entry and the trend is steady
• highly globalized and the trend is steady

With the above information in perspective, it is my view that companies within the industry will place additional emphasis and importance on improving their supply chain management and strategic planning to maintain or increase their market share and competitiveness.  This view lines rather smoothly with my previous training/experience and intent to pursue the Product Service Management career track with emphasis on Strategic Management.