Industry Analysis & Industry Trends
In 2013, the Oil and Gas Drilling Support Services industry is expected to generate $36.1 billion. Over the past five years, revenue has been growing at an annualized rate of 3.2% per year. With rising labor costs and raw material prices, industry profit is estimated at 2.0% of revenue in 2013 – 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 2013, their combined market share is estimated to be 92.5% of industry revenue.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Over the decade to 2018, industry value-added is estimated to increase 2.9% per year, which is lower than that of China's GDP (8.0% per year) over the same period.
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.
Currently, domestic drilling support service companies still have room for improving their technologies and systems to provide high-quality integrated services... purchase to read more