Industrial Analysis of Oil Industry

Industrial Analysis (US 2022)

SP500 Operating and Service Oil Companies

Osama Abdelaziem

Petroleum Engineer

Project of Supply Chain Analytics Specialization - Rutgers University

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Market Growth

Subject-list one
Subject-list two
Subject-list three

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Employees & Salary

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Industrial Trend - Industry Total Size

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Industrial Comparison - Profitability

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Industrial Comparison - Growth

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Competition Positioning - Size and Profitability

Industry Profit vs. Cost Analysis.
Industry Profit vs. Total Assets value Analysis.

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Competition Positioning - Profit Frontier, Return vs. Risk

Industry Operating Margin vs. Revenue
Return on Assets vs. Liability Asset Ratio

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Return on Assets vs. Liability Asset Ratio

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Enterprise Ranking - Total Revenue Growth Rate

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Inventory Benchmark by KPI

Inventory / Total Assets
Inventory Turnover
Inventory Days

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Inventory Analysis

When considering the inventory-to-asset ratio, it's evident that equipment and service companies outperform integrated companies. This is primarily because equipment and service companies primarily focus on providing services or selling equipment, whereas operating companies often maintain excess inventory to accommodate unexpected fluctuations in activity.
By analyzing turnover, we can observe that integrated companies tend to have significantly higher turnover rates and much shorter inventory turnover cycles. This trend is favorable and underscores the value of swift replenishment. The reason behind this is quite straightforward; integrated companies frequently utilize stocked equipment, such as downhole equipment, for a wide range of activities, particularly during periods of high activity. Conversely, equipment and service companies typically offer services in addition to selling equipment. As a result, it becomes evident that equipment utilized for specific tasks is typically maintained only once the task is completed in the field, resulting in a lower turnover for spare parts and equipment in their inventory.