Grease the wheels: The need to repair, replace and expand existing infrastructure will bolster demand

Over the past five years, the Oil and Gas Pipeline Construction industry benefited from 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 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...read more.

Industry Statistics & Market Size
Revenue
$42bn
Annual Growth 12-17
-1.3%
Forecast Growth 17-22
Profit
Employment
161,543
Businesses
2,209
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • The emergence of hydraulic fracturing and horizontal drilling has fueled a rush of new pipeline proposals
  • Discoveries of new resources and drilling techniques have driven demand
  • Strong demand is projected to drive industry employment and wages
  • 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. New...purchase to read more.

    Additional Insights for the Oil & Gas Pipeline Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil & Gas Pipeline Construction Industry are

  • Ability to compete on tender
  • Must comply with government regulations
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as US oil and gas production index and World price of crude oil in the Oil & Gas Pipeline Construction industry impact industry performance..

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    What is the Oil & Gas Pipeline Construction Industry?

    This industry comprises contractors that are responsible for the construction of gas and oil pipelines, mains, pumping stations, refineries and storage tanks. It also includes construction management companies and special trade contractors that are primarily involved in oil and pipeline construction.

    Industry Products
  • New pipelines greater than 1000 MMcf/d
  • Pipeline additions and alterations
  • New pipelines less than 1000 MMcf/d
  • Pipeline maintenance
  • Industry Activities
  • Gas and oil pipeline construction
  • Gas main construction
  • Oil refinery construction
  • Pipeline repair and reconstruction
  • Pumping station construction
  • Natural gas processing plant construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • US oil and gas production index
  • World price of crude oil
  • World price of natural gas
  • Regulation for the Refined Petroleum Pipeline Transportation industry
  • World price of steel

  • Current Performance
  • Structural capacity
  • Lifting the ban
  • Steady demand
  • Continuing volatility
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit continues to flow
  • Industry activity
  • Table: Oil & Gas Pipeline Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil & Gas Pipeline Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Natural Gas Distribution
  • Petroleum Refining
  • Engineering Services

  • Key Selling Industries
  • Concrete Pipe & Block Manufacturing
  • Construction Machinery Manufacturing
  • Heavy Equipment Rental
  • Metal Pipe & Tube Manufacturing
  • Professional, Scientific and Technical Services
  • Ready-Mix Concrete Manufacturing
  • Sand & Gravel Mining
  • Valve Manufacturing
  • Wholesale Trade

  • Products & Services
  • New pipelines greater than 1000 MMcf/d
  • Pipeline additions and alterations
  • Pipeline maintenance
  • New pipelines less than 1000 MMcf/d
  • Chart: Oil & Gas Pipeline Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Influences on investment

  • Major Markets
  • Private-sector oil interests
  • Private-sector natural gas interests
  • Public-sector clients
  • Chart: Major Market Segmentation for the Oil & Gas Pipeline Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Oil & Gas Pipeline Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil & Gas Pipeline Construction Industry

  • Industry Globalization
    Fluor Corp.Bechtel Corporation
  • Table: Fluor Corp. - financial performance
  • Table: Bechtel Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil & Gas Pipeline Construction 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 & Gas Pipeline Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World price of crude oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Liquefied Natural Gas (Lng)
  • Natural gas that has been cooled for transportation purposes to -260ø Fahrenheit, at which point it becomes a liquid.
  • Prime Contractor
  • Chief contractor who has a contract with the owner of a project or job, has full responsibility for its completion, and may employ (and manage) one or more subcontractors to help complete the project.
  • Shale Gas
  • A natural gas produced from shale that has become an increasingly important source of natural gas in the United States over the past decade.
  • Why buy this report?

    The Oil & Gas Pipeline Construction industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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 & Gas Pipeline Construction:
    • 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 & Gas Pipeline Construction 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 & Gas Pipeline Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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