Industry Analysis & Industry Trends
Operators in the Oil and Gas Field Services industry primarily provide services to oil and gas extractors, making demand highly dependent on oil and natural gas prices. Over the past five years, divergent US and global energy prices stemming from the recession resulted in volatile year-on-year revenue growth. Nevertheless, revenue has increased overall due to steadily growing global demand for energy and recovery from recessionary lows. In the coming years, demand for oil and gas field services is projected to rise, as the global economy recovers. However, low US natural gas prices will likely continue to constrain industry growth. Stringent offshore drilling permit regulations in the Gulf Coast will also offset some revenue gains derived from an increase in crude oil prices... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Oil and Gas Field Services industry has a low level of market share concentration, with the four largest operators accounting for less than 40.0% of industry revenue. While major players are multinational oilfield services companies, the majority of industry operators are small with very small market share. The largest player, Halliburton, accounts for just over 10.0% of industry revenue. Concentration is particularly low among companies that supply support services for oil drilling and gas extraction on land. Conversely, concentration is higher in the offshore oil and gas extraction services segment, because these services have greater capital requirements.
The industry's low concentration is reflected in industry employment patterns... purchase to read more