Industry Analysis & Industry Trends
In 2016, the Oil and Gas Drilling Support Services industry is expected to generate $36.5 billion. Over the five years to 2016, revenue has been growing at an annualized rate of 1.0% per year. Since the second half of 2014, international oil prices have been falling. As such, major oil companies have reduced investment in oil and gas exploration and development, resulting in a significant reduction in the overall workload of the oil and gas service industry. Revenue has showed a downward trend in the three years to 2016.
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).... purchase to read more
Industry Report - Starting a New Business Chapter
Large capital investment
A large capital investment is required to establish operations 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 reputations established through successful projects in the past, are more likely to succeed. This is particularly true for obtaining contracts related to ongoing well maintenance.
Oil and gas drilling support service activities have high requirements for technologies... purchase to read more