Innovation in the Oil and Gas Industry

Spring 2017

Direct notes from Ed

Will's project

• A note: Will's project has some overlap so we might borrow from his data, or he from ours, or we might research together or something

1. U.S. Publicly-traded firms (1980-present)
   1. Industry Definitions in NAICS codes for O&G vs. IT vs. BT, etc.
      1. According to Ed, Will might not be doing these as much as us
   2. Competition in markets
   3. Stocks and flows
   4. Branch offices
   5. Presence and size of Corp VC arms
   6. Joins to other data
      1. Flow and return of private equity deals
      2. Mean stock and flow of patents by year and industry
         1. Overlaps with us
      3. Mean stock and flow of venture backed by year and industry (# and $)
         1. Overlaps with us
      4. Mean flow of M&As by year and industry (# and $)
         1. Overlaps with us
      5. Mean stock and flow of JVs by year and industry (# and $?)
      6. Mean flow of Spinoffs by year and industry (# and $)
         1. Overlaps with us

Our project

1. Open Innovation and Competition (Avesh & Carlin previously worked on Oil & Gas)
   1. Oil vs. other sectors - Is there open innovation for Oil & Gas?
   2. Other interns: ???
   3. Measures: M&A, spinoffs, patents, etc.
      1. A note: these can be taken from Will's project

General data we need to proceed

• Patent data - knowledge of what we have & what we're looking for in the data
• M&As by year and industry (# and $) (do we pull this from SDC?)
• Spinoffs by year and industry (# and $) (do we pull this from SDC?)
• How to do industry classifications
  • Did some work on this last semester but might want to revisit
• limiting the data to companies in the S&P 500? Or no?

Skills we probably need to proceed

• SQL technical skills - probably know basics but it might be good to know general ways we can manipulate the data once we get it
• COMPUSTAT, SDC for companies' industry groups

Timeline

• Should start off with a lit review

Fall 2016

General project info

• Avesh will be researching patents (counting patents for firms in each industry categorization in the s&p500)
• Carlin will use SDC to count aquistions and mergers for frims in each industry categorization in the s&p500
  • need help with search terms
• still also to do: get R&D spending data from compustat

Notes from Ed

Let's start by pulling some basic data on the S&P 500 over time. COMPUSTAT can provide you with financials and NAICS codes. We can do some industry groupings from there. But you'll need an S&P 500 indicator from somewhere in WRDS, or we'll have to put together a list from other sources.

S&P Industry group

1. consumer discretionary
2. financials
3. industrials
4. energy
5. food, beverages, and tobacco
6. food and staples retailing
7. Health care equipment and services
8. household and personal products
9. insurance
10. materials
11. media
12. pharmaceuticals, biotechnology, and life sciences
13. real estate
14. retailing
15. semiconductors and semiconductor equipment
16. software and services
17. technology hardware and equipment
18. telecommunication services
19. transportation
20. utilities

Alt list from yahoo finance [1]

1. basic materials (includes oil and gas)
2. conglomerates
3. consumer goods
4. financial
5. healthcare
6. services
7. technology
8. utilities

S&P sub-industry

1. Aerospace & Defense
2. Air Freight & Logistics
3. Airlines
4. Auto Components
5. Automobiles
6. Beverages
7. Biotechnology
8. Building Products
9. Capital Markets
10. Chemicals
11. Commercial Banks
12. Commercial Services & Supplies
13. Communications Equipment
14. Computers & Peripherals
15. Construction & Engineering
16. Construction Materials
17. Consumer Finance
18. Containers & Packaging
19. Distributors
20. Diversified Consumer Services
21. Diversified Financial Services
22. Diversified Telecommunication Services
23. Electric Utilities
24. Electrical Equipment
25. Electronic Equipment, Instruments & Components
26. Energy Equipment & Services
27. Food & Staples Retailing
28. Food Products
29. Gas Utilities
30. Health Care Equipment & Supplies
31. Health Care Providers & Services
32. Health Care Technology
33. Hotels, Restaurants & Leisure
34. Household Durables
35. Household Products
36. Independent Power Producers & Energy Traders
37. Industrial Conglomerates
38. Industry
39. Insurance
40. Internet & Catalog Retail
41. Internet Software & Services
42. IT Services
43. Leisure Equipment & Products
44. Life Sciences Tools & Services
45. Machinery
46. Media
47. Metals & Mining
48. Multi-Utilities
49. Multiline Retail
50. Office Electronics
51. Oil, Gas & Consumable Fuels
52. Paper & Forest Products
53. Personal Products
54. Pharmaceuticals
55. Professional Services
56. Real Estate Investment Trusts (REITs)
57. Real Estate Management & Development
58. Road & Rail
59. Semiconductors & Semiconductor Equipment
60. Software
61. Specialty Retail
62. Textiles, Apparel & Luxury Goods
63. Thrifts & Mortgage Finance
64. Tobacco
65. Trading Companies & Distributors
66. Wireless Telecommunication Services