Most people think the oil & gas industry is the same as the energy industry. Thats totally wrong, so watch to learn more.
Transcript of Session –
Hey, folks. Let’s learn some more about the oil and gas industry.
Okay. Often I have people talk to me about the energy business. Here in the US, energy does not cover both the electric utilities and the oil and gas companies. In fact, they are two totally different businesses and you need to understand that if you’re trying to actually grow a revenue stream.
All right. The energy business is the distribution or production of electrical power and it’s really vastly different from the oil and gas industry. It’s regional and except for the states that have deregulated it. It’s regulated at the state level. The profit margins are very low, it’s highly regulated. There’s actually a decreasing demand for electricity in North America. This year we used less electricity than we did the year before and that trend will continue. And they really have a low need for new technology.
Now, let’s compare that to the oil and gas industry. The oil and gas industry is truly global, it’s not regional. It’s much higher margin, it’s less regulated regardless what oil and gas guys tell you, it really is much less regulated than the energy business. There’s an increasing demand globally so there’s a more need this year for oil and gas and its products than it was last year and that trend is supposed to continue. And there’s a much higher need for new technology.
So, as you can see these two industries are totally different and you need to approach them taking into account their unique differentiators. The oil and gas industry is truly a totally different business model than the electrical energy businesses. So I hope this helps.