In 1996 a much improved iteration of this technology

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: osts increasing by 51% over the same 5 year period (Skjellevik, 2011). Suppliers have been able to grow their revenues, because they have been able to internationalize. International sales grew from $8.7 billion in 2000 to more than $20 billion in 2010 (Skjellevik, 2011). For the top 350 suppliers, on average 32% of sales are outside of Norway. Generally the sub clusters with the highest profit margins have the highest percentage of international sales (Geology, Seismic and Drilling), as seen in Figures 16a and 16b. Table 2 shows their global market share by oil and gas producing regions. The strength and growth potential of the Norwegian supplier base attract foreign capital to Norway. The Oslo Stock Exchange is the 2nd largest market in Europe for energy companies and the 2nd largest worldwide for oil and gas suppliers (Oslo Børs, 2012). Cluster Diamond Analysis The diamond for the Norwegian oil and gas supplier cluster highlights many strengths, while also surfacing some concerns for the future (See Figure 17). The oil & gas cluster in Norway 20 Related and Supporting Industries The oil and gas supplier cluster was built upon existing competences in mining, shipping and shipbuilding. These industries have continued to flourish as the oil and gas supplier industry has grown, with combined 2007 exports totaling nearly $34 billion. The business services cluster has also emerged to support the internationalization of Norway’s oil and gas suppliers; 2007 exports totaled $12.5 billion (HBS ISC, 2012). Demand Conditions The harsh Norwegian climate combined with stringent regulatory requirements has led to many important innovations in oil and gas technology. The Norwegian Continental Shelf is considered an “advanced laborat...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online