Industry Analysis & Industry Trends
In 2012, the Oil and Gas Drilling Support Services industry is expected to generate $34.9 billion. Over the past five years, revenue has been growing at an annualized rate of 10.6% per year. With rising labor costs and raw material prices, industry profit is estimated at 2.5% of revenue in 2012 – although low, profit has recovered significantly from losses in 2009 due to the global recession.
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 2012, their combined market share is estimated to be 92.6% of industry revenue.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
During the past five years, global demand for oil and gas was substantial and the prices of both showed a general increasing trend. Oil and Gas Drilling companies began to explore and develop more fields, especially in deep underground and offshore areas. This led to an increase in demand for professional and integrated drilling support services.
There was an increasing trend for oil and gas drilling companies to outsource drilling support services to specialized service companies, which have 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 specialization will contribute to creating more demand... purchase to read more