Industry Analysis & Industry Trends
Over the five years to 2016, the Oil and Gas Pipeline Construction industry boomed due to heavy investment in natural gas and oil infrastructure construction. Increases in energy prices and advancements in extraction technologies caused significant increases in domestic oil and natural gas production, which boosted demand for pipeline construction to connect existing infrastructure and markets. However, falling crude oil and natural gas prices since the latter half of 2014 through early 2016 slashed investment budgets and, therefore, industry revenue. Looking forward, the industry is projected to experience strong demand, as new natural gas resources require existing pipelines to reach capacity... purchase to read more
Industry Report - Starting a New Business Chapter
This industry has medium barriers to entry, principally associated with the entrenched existing players in regional markets and the complex nature of construction in specialized segments, such as offshore construction. This industry's economies of scale are limited due to the geographic dispersal of contracts and because large-scale contractors generally need to have representation across several localized markets. However, new entrants can compete effectively on smaller-scale local contracts, particularly maintenance and repair work on pipelines.
Nonetheless, the technical complexity of oil and gas pipeline and related infrastructure projects can effectively restrict the entry of new competitors... purchase to read more