Industry Analysis & Industry Trends
Over the past five years, the Oil and Gas Pipeline Construction industry has experienced strong, yet erratic demand due to volatile investment in energy-related infrastructure. Driven by higher global energy prices and the implementation of new technologies, oil and natural gas pipeline contractors experienced a considerable spike in demand in 2008, fluctuating annually in the subsequent five years. Looking forward, continued investment in unconventional domestic energy sources (e.g. shale gas and oil sands), the need to repair, replace and expand existing infrastructure and the recovery in residential construction will bolster industry performance over the five years to 2019... purchase to read more
Industry Report - Industry Investment Chapter
The Oil and Gas Pipeline Construction industry exhibits a moderate level of capital intensity. For every dollar spent on labor, the average industry firm will invest about $0.14 in capital equipment. This industry has relatively high capital inputs relative to most construction industries. This industry typically allocates about 2.0% to 5.0% of revenue to capital expenditures on plants and equipment, though smaller-scale contractors typically lease equipment on a piecemeal basis or through subcontracting to specialist operatives (e.g. crane operators and structural steel erectors).
The basic machinery required in this industry involves earthmoving equipment (e.g. dozers, backhoes, trackhoes, ditching machines and motor graders) and specialist tunneling and pipeline equipment (e.g... purchase to read more