Industry Analysis & Industry Trends
In 2015, the Oil and Gas Drilling Support Services industry is expected to generate $39.2 billion. Over the past five years, revenue has been growing at an annualized rate of 5.2% per year. With rising labor costs and raw material prices, industry profit is estimated at 2.6% of revenue in 2015 – although low, profitabilty has been rising.
A major feature of this industry is the existing oligopoly among the three state-owned oil companies, China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec) and China National Offshore Oil Corporation (CNOOC). In 2015, their combined market share is estimated to be 94.0% of industry revenue. There are about 150 firms operating in this industry, employing 312,505 people with total wages of $7.3 billion.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Over the decade to 2020, industry value-added is estimated to increase 5.5% per year, which is lower than that of China's GDP (6.5% per year) over the same period.
There has been a trend toward oil and gas drilling companies outsourcing drilling support services to specialized service companies with technology and price advantages in drilling, well logging, derrick erection and related services. Drilling companies also rent equipment such as drilling platforms from drilling service companies. This growing trend will contribute to more industry demand.
Domestic drilling support service companies still have room for improving their technologies and systems to provide high-quality integrated services... purchase to read more