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. The 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 - Starting a New Business Chapter
Barriers to entry in the Oil and Gas Field Services industry vary depending on the services being provided. For example, simple exploration and geological services have fewer barriers than offshore drilling services. Overall, the level of barriers to entry into the industry is considered medium, mostly because small operators can participate in this industry by providing information, research and management services. Barriers to entry are very high for firms that want to provide comprehensive oil and gas drilling services.
The industry has substantial working capital requirements. Firms need to be able to fund activity until day rate or progress payments (in the case of a lump-sum contract) are made... purchase to read more