Industry Analysis & Industry Trends
In the past five years, the industry has benefited from the rise in oil and natural gas prices, which has boosted extractors' demand for the industry's services. Demand for oil and natural gas will continue to grow as the economy recovers in the coming years. Nevertheless, the stringent permitting process for new offshore wells in the Gulf of Mexico will likely restrict potential revenue growth. Furthermore, increased government regulations for hydraulic fracturing are anticipated to lower the attractiveness of natural gas projects... purchase to read more
Industry Report - Industry Investment Chapter
This industry has a high level of capital intensity despite employing a substantial workforce. Industry services heavily rely on capital equipment, including sophisticated offshore and onshore oil and gas drilling rigs. Operators also compete based on the quality of their technology; therefore, they significantly invest in researching, developing and obtaining the latest and most efficient technology and machinery. In 2014, for every dollar spent on labor, an estimated $0.44 is spent on capital investments.
Positioning and operating drilling rigs, including various types of offshore rigs, require considerable skill, which is reflected in the large share of revenue consumed by wages... purchase to read more