Oil is high cap-ex, low op-ex, as labor costs are relatively cheap. Software is low cap-ex, but once you've created a prototype and need to hire people to build a business on top of it, op-ex becomes expensive.
I think you are correct relative to each specific industry, i.e software projects require more developers and server space at scale so they cost more to run BUT, that opex is low relative to the energy industry.
Tools and automation get better while all computer resources become less. oil operating costs likely dwarf a comprable SASS conpany in operational expenses.
edit
to clarify, opex in software becomes more expensive in aggregate. i can't think of a good business that has dropping opex as it scales except maybe Enron or a chainmail referral company. Energy companies do have high barriers to entry with a much lower opex after infrastructure has been developed, but software isn't neccesarily the opposite. If we compare a built out production application, outside of beta, with a decent userbase and its core purpose/features implemented, with a nuclear plant or oil refinery, the costs to rub the app is almost certainly lower than the energy comps and could possibly have opex held fairly linear relative to growth.
Oil is low op-ex compared to its cap-ex. I don't have numbers to back it up, but I'd argue software companies' op-ex is still far cheaper than oil's.
Oil production and infrastructure maintenance aren't cheap. It's not like we just turn on the taps after the wells are drilled. However, labor is cheap, even in the software industry.
> However, labor is cheap, even in the software industry.
I think by this point we're accustomed to dealing with large software players who have scaled their businesses to the point where labor cost is indeed marginal to overall profit picture.
Back in the days attempts to build a small-scale software company (local Web design firm) or even a medium-scale software business (seller of compilers, industry-specific tooling, shareware) basically broke down because of unfavorable economics.
So we're dealing with a bit of survivor bias here - smallish and medium software firms for whom labor was a major cost center are either out of business, commoditized or both. In energy business, while the large companies still enjoy large budgets and economies of scale, it's still quite possible to be a small to medium size player and enjoy a steady cashflow.
Tools and automation get better while all computer resources become less. oil operating costs likely dwarf a comprable SASS conpany in operational expenses.
edit
to clarify, opex in software becomes more expensive in aggregate. i can't think of a good business that has dropping opex as it scales except maybe Enron or a chainmail referral company. Energy companies do have high barriers to entry with a much lower opex after infrastructure has been developed, but software isn't neccesarily the opposite. If we compare a built out production application, outside of beta, with a decent userbase and its core purpose/features implemented, with a nuclear plant or oil refinery, the costs to rub the app is almost certainly lower than the energy comps and could possibly have opex held fairly linear relative to growth.