Oil & Gas sector attractiveness:
Someone may think that the Oil & Gas industry appeal is for the “money”. This is undeniably a sure factor. But from a technology driven supplier, what it makes really watering your mouth is the tremendous high level of complexity this industry problems lay out in front the engineers.
On this respect, the offshore side of the industry is probably the one with the most interesting challenges.
Here the players have going through a recent stream of consolidation, by M&A, aimed at gaining the size to bear the financial risks projects of ever larger size put on the table.
Project size is growing mainly because Oil & Gas Companies are looking to exploit economies of scale, this in turn points towards larger reservoirs, that today are to be found only in deep offshore basins.
This situation means that equipment and service suppliers to the offshore industry are confronted with very few, extremely large, international Clients. Companies capable to pull a widespread network of suppliers and integrate their capabilities into a single effort.
Their bargaining power is definitively low, unless they can offer an outstanding performance, capable to displace alternative solutions in terms of reliability, convenience and price.