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What Is Energy Industry Analysis?

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  • Written By: Geri Terzo
  • Edited By: Shereen Skola
  • Last Modified Date: 21 November 2016
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The energy industry requires a great deal of capital and expertise to operate. An energy industry analysis may occur to maintain or increase the level of production by a corporation or in a country. This type of study might occur for one or more of the aspects of development, including financing, operation, and risk. The process could unfold for conventional oil and gas production or alternative methods for energy generation.

As a result of the use of heavy and dangerous equipment throughout oil and gas production, a risk assessment can be included in an energy industry analysis. Throughout the process, consultants and executives may evaluate the age and efficiency of the industry tools that are being used. Sometimes there may be a threat of some machine breaking down. Consequently, a decision may need to be reached as to whether or not the item can be repaired or should be replaced.

Also, the expertise of the workers who are using the equipment is likely to be considered. If necessary, further training might be warranted so that the latest techniques for safety and efficiency are used. An energy industry analysis may approach the scenario of an emergency and consider the time it could take for an oil-rig platform or some other structure to be evaluated.

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Another energy industry analysis that may be performed is tied to the investment in the projects that are underway or could be adopted. There are generally various stages associated with obtaining the rights to access the natural resources beneath the surface of the ground. This could involve leasing the rights to land or acquiring property outright. Similarly, the cost for the drilling or transportation machinery used is commonly worth evaluating. Subsequently, energy industry analysis may include determining the ideal way to finance some operation in the most cost-effective manner.

In addition to traditional sources, which may include the development of fossil fuel resources, an energy industry analysis could extend to alternative power generation. For instance, in solar power, the latest technological achievements may be considered. This may determine reasonable assessments for wider distribution of this non-traditional power source. Also, political and economic involvement could be evaluated.

Funding from the public sector could have a direct impact on the growth of alternative energy in a region. Federal regulation also affects the amount of drilling activity that can occur in the development of oil and gas resources. An energy industry analysis may occur throughout any political changes or advancements that alter the landscape for production.

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