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...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
What Our Customers Say

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 Locations Chapter

    The geographic spread of oil drilling and gas extraction operations is shaped by the distribution of oil and gas deposits. In 2016 (latest available data), the largest oil fields by production were Kern River, Midway-Sunset, South Belridge and Cymric, together accounting for nearly half of California's crude oil production. The majority of natural gas extraction, in the meantime, took place at Elk Hills, Buena Vista and South Belridge gas fields, at 54.2% of state production. All of these oil and gas fields are located in Kern County, which is home to 31.9% of industry establishments...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 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 LLCChevron Corp.California Resources CorporationFreeport-McMoRan Inc.
  • Table: Aera Energy LLC - financial performance
  • Table: Chevron Corp. - financial performance
  • Table: California Resources Corporation - financial performance
  • Table: Freeport-McMoRan 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.
  • Why buy this report?

    IBISWorld’s industry research report on Oil Drilling & Gas Extraction in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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