Overflow: Due to a glut in oil and gas, operators are cutting production to improve prices

The Oil Drilling and Gas Extraction industry in California has been challenged by a number of factors in the five years to 2017, and profit margins have taken a substantial hit. Industry operators were challenged by the same issues as their counterparts nationwide, as innovative production techniques like hydraulic fracturing and directional drilling have flooded the market with low-cost oil and gas, in turn slashing their respective prices. More specifically, starting in 2014, the oversupply in crude oil and natural gas slashed commodity prices. As a result, industry revenue has declined in the past five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 12-17
-5.9%
Forecast Growth 17-22
Profit
Employment
8,452
Businesses
3,100

Industry Threats & Opportunities

  • The recent oversupply slashed oil and gas prices, exacerbated production costs and limited profit margins
  • Recovering prices of crude oil and natural gas will help reduce volatility in the market
  • The annual crude oil production in California is anticipated to subside slowly
  • Industry Report - Industry SWOT Analysis Chapter

    ***This section is not used for US State reports***.Only set Reasons & Level!...purchase to read more.

    Additional Insights for the Oil Drilling & Gas Extraction in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil Drilling & Gas Extraction in California Industry are

  • Economies of scale
  • Downstream ownership links
  • Ability to find new resource deposits
  • IBISWorld analysts also discuss how external factors such as Oil and natural gas price index and Annual Crude Oil Production in California in the Oil Drilling & Gas Extraction in California industry impact industry performance..

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    What's in this report

    What is the Oil Drilling & Gas Extraction in California Industry?

    Companies in this industry operate and develop oil and gas field properties in California. Activities include the exploration and production of crude petroleum; the mining and extraction of oil from oil shale and oil sands; the exploration and production of natural gas; sulfur recovery from natural gas; and recovery of hydrocarbon liquids. Companies may operate oil and gas wells on their own account or for others on a contract or fee basis.

    Industry Products
  • Crude Oil
  • Natural Gas
  • Natural Gas Liquids
  • Industry Activities
  • Extracting crude petroleum and natural gas
  • Extracting natural gas liquid
  • Exploring for crude petroleum and natural gas
  • Drilling, completing and equipping wells
  • Operating separators, emulsion breakers, desilting equipment and field gathering lines for crude petroleum
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Oil and natural gas price index
  • Annual Crude Oil Production in California
  • Total vehicle miles
  • US energy production

  • Current Performance
  • Production changes
  • Recovering prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory hurdles
  • Price comeback
  • Table: Oil Drilling & Gas Extraction in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil Drilling & Gas Extraction in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Natural Gas Distribution
  • Petroleum Refining

  • Key Selling Industries
  • Metal Pipe & Tube Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Oil & Gas Field Services
  • Pump & Compressor Manufacturing

  • Products & Services
  • Crude Oil
  • Natural Gas
  • Natural Gas Liquids
  • Chart: Oil Drilling & Gas Extraction in California Industry Products and Services Segmentation

  • Major Markets
  • Petroleum Refining industry
  • Exports
  • Natural Gas Distribution industry
  • Other
  • Chart: Major Market Segmentation for the Oil Drilling & Gas Extraction in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciationPurchasesWages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Oil Drilling & Gas Extraction in California

  • Basis of Competition
    PriceQualityExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil Drilling & Gas Extraction in California Industry

  • Aera Energy LLC, Chevron Corp., California Resources Corporation, Freeport-McMoRan Copper and Gold Inc.,
  • Table: Aera Energy LLC - financial performance
  • Table: Chevron Corp. - financial performance
  • Table: California Resources Corporation - financial performance
  • Table: Freeport-McMoRan Copper and Gold Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil Drilling & Gas Extraction in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Oil Drilling & Gas Extraction in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Annual Crude Oil Production in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Directional Drilling
  • Also known as slant drilling; a process by which non-vertical wells are drilled.
  • Hydraulic Fracturing
  • A hydrocarbon-extracting process in which massive amounts of fluid are pumped into a well at high pressures, which causes the reservoir formation to fracture.
  • Natural Gas
  • Gases that consist primarily of methane but also include small amounts of heavier hydrocarbons such as propane and butane.
  • Oil Field
  • An underground or undersea deposit of oil contained within a stable geological formation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Oil Drilling & Gas Extraction in California is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Oil Drilling & Gas Extraction in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Oil Drilling & Gas Extraction in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Oil Drilling & Gas Extraction in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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