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 Investment Chapter
The labor to capital ratio represents the number of labor units used for every unit of capital. ACMR-IBISWorld uses total wages as a proxy for labor and depreciation as a proxy for capital. With a capital to labor ratio of 0.33:1, this industry is subject to a high capital intensity level. However, both wages and depreciation account for significant shares of industry revenue.
This industry uses high-technology equipment and facilities for oil and gas drilling support services, such as drilling and well logging. Enterprises constantly develop and use new equipment and technologies to improve their work efficiency. Existing equipment also requires frequent maintenance. Therefore, the industry has a high depreciation level... purchase to read more