Industry Analysis & Industry Trends
In 2011, the Support Activities for Oil and Gas Mining industry is expected to generate revenue of $28.3 billion, up 3.3% from 2010. This is much lower growth than the average level over the five years to 2011, which is 10.3% per annum. Industry profits are estimated at 2.5% of revenue in 2011, up significantly from losses in 2009 that suffered a lot from the global recession.
Both export and import levels in the industry are low. Competing imports are estimated to account for 1.2% of domestic demand while exports are estimated to generate 1.6% of industry revenue. This is because most oil and gas mining support service companies operate in the domestic market and can generally satisfy domestic demand.... purchase to read more
Industry Report - Starting a New Business Chapter
Large capital investment is required to establish an operation in this industry. Firms need to invest heavily in large-scale equipment, such as land-based and offshore drilling rigs of various sizes. The industry also requires substantial working capital. Service companies should be able to fund activities until day-rate or progress payments (in the case of a lump-sum contract) are made.
Companies with good reputation, established through successful projects in the past, are more likely to succeed in the competition. This is particularly true for contracts related to ongoing well maintenance.
Oil and gas mining support activities have high requirements for technologies... purchase to read more