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 - Industry Investment Chapter
The Oil and Gas Pipeline Construction industry exhibits a low-to-moderate level of capital intensity. For every dollar spent on labor, the average industry operator will invest about $0.11 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... purchase to read more