External/Industry Analysis: Workforce Housing in the Oil and Gas Industry
INDUSTRY ANALYSIS
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External/Industry Analysis: Workforce Housing in the Oil and Gas Industry Steve McKeon Westminster College
INDUSTRY ANALYSIS
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Introduction The external analysis is designed to help companies identify specific trends and events that may have an impact on their business. This concept is not difficult to understand, but many companies have fallen victim to their own complacency. This is why the external analysis is so important and must be evaluated on a regular basis. When performing an external analysis it is best to focus in on a target industry to ensure that only relevant information is analyzed. The industry we are analyzing for this purpose is the workforce housing sector of the oil and gas industry. There has been an oil boom in the United States’ lower 48. New drilling techniques, namely horizontal drilling, have paved the way for domestic oil companies to exploit hard to reach homeland oil reserves. Due to a controversial technology known as “fracking,” oil and gas drilling has seen an explosion in production, and with higher production comes a need for labor. These laborers need a place to live and currently, housing is in high demand. A major concern that most cities and counties have is how much to build up for a permanent and temporary workforce. This analysis will address the housing needs of the new labor force and identify opportunities and threats within the market.
Competitive Advantage Rhino Supply SDV LLC (Rhino) is a Service Disable Veteran Owned Small Business (SDVOSB) focusing on providing supplies to many different industries. Being an SDVOSB is one competitive advantage of Rhino. Currently, the United States Federal Government has a Presidential mandate to award 3% of the Federal Budget to SDVOSBs. Rhino is poised to take advantage of the socio economic goals of the Federal Government by teaming with wholesale
INDUSTRY ANALYSIS companies looking to increase their product sales to the government. As
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External/Industry Analysis: Workforce Housing in the Oil and Gas Industry Steve McKeon Westminster College
INDUSTRY ANALYSIS
2
Introduction The external analysis is designed to help companies identify specific trends and events that may have an impact on their business. This concept is not difficult to understand, but many companies have fallen victim to their own complacency. This is why the external analysis is so important and must be evaluated on a regular basis. When performing an external analysis it is best to focus in on a target industry to ensure that only relevant information is analyzed. The industry we are analyzing for this purpose is the workforce housing sector of the oil and gas industry. There has been an oil boom in the United States’ lower 48. New drilling techniques, namely horizontal drilling, have paved the way for domestic oil companies to exploit hard to reach homeland oil reserves. Due to a controversial technology known as “fracking,” oil and gas drilling has seen an explosion in production, and with higher production comes a need for labor. These laborers need a place to live and currently, housing is in high demand. A major concern that most cities and counties have is how much to build up for a permanent and temporary workforce. This analysis will address the housing needs of the new labor force and identify opportunities and threats within the market.
Competitive Advantage Rhino Supply SDV LLC (Rhino) is a Service Disable Veteran Owned Small Business (SDVOSB) focusing on providing supplies to many different industries. Being an SDVOSB is one competitive advantage of Rhino. Currently, the United States Federal Government has a Presidential mandate to award 3% of the Federal Budget to SDVOSBs. Rhino is poised to take advantage of the socio economic goals of the Federal Government by teaming with wholesale
INDUSTRY ANALYSIS companies looking to increase their product sales to the government. As
References: 9 Abaffy, Luke. (2012). Oil ignites micro boom. Engineering News-Record, 269(1), 12. Retrieved from http://enr.construction.com Carrns, Ann. (2012, March 24). Leaving families behind for life in a 'man camp '. The International Herald Tribune, p. 14. Retrieved from http://global.nytimes.com/?iht Galbraith, Kate. (2012, July 13). In oil boom, a housing shortage and other issues. The New York Times, p. 17A. Retrieved from http://www.nytimes.com Shafer, Christi. (2012, June 4). Oil, gas rich Eagle Ford shale creates economic boom in Texas. Natural Gas Week, Retrieved from http://www.energyintel.com Sulzberger, A.G. (2011, November 25). Oil rigs bring camps of men to the prairie. The New York Times, p. 12. Retrieved from http://www.nytimes.com Warnica, R. (2012). Boom, busts and trouble. Maclean 's, 32. Retrieved from http://www2.macleans.ca INDUSTRY ANALYSIS Attachment 1 10 INDUSTRY ANALYSIS 11 INDUSTRY ANALYSIS 12 INDUSTRY ANALYSIS 13