Digging deep: Divergent US and global energy prices resulted in volatile year-on-year revenue growth

IBISWorld’s industry research report on Oil & Gas Field Services 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.


Industry Threats & Opportunities

  • Rising oil and gas prices typically result in increased demand for industry services, especially if prices are expected to remain high
  • Industry operators increasingly attempted to cut costs as demand plummeted
  • Large companies will continue to dominate the industry
  • Industry Analysis & Industry Trends

    Over the past five years, divergent US and global energy prices resulted in volatile year-on-year revenue growth. However, starting in late 2014 and continuing through to 2016, the prices of crude oil and natural gas plummeted, severely hindering demand for industry services. Consequently, over the five years to 2017, industry revenue is expected to fall. Rising oil and gas prices typically result in increased demand for industry services, especially if prices are expected to remain high. Demand for oil and gas field services is projected to rise over the next five years as the global economy recovers. However, low US crude oil prices will likely continue to constrain industry growth.

    Industry Report - Industry SWOT Analysis Chapter

    The Oil and Gas Field Services industry is in the mature stage of its life cycle. In the 10 years to 2022, industry value added, which measures an industry's contribution to the US economy, is expected to fall at an annualized rate of 4.2%. During the same period, US GDP is projected to increase an annualized 2.1%. Although the industry's importance to the economy is contracting, this is due to the volatility of crude oil and natural gas prices.

    This industry has long been established and products and services are widely accepted in the marketplace. Operators primarily provide drilling and support services to oil and natural gas extractors, with mining services accounting for a small proportion of industry revenue. Res

    Additional Insights for the Oil & Gas Field Services Industry

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

  • Having a high prior success rate (including completed prior contracts)
  • Use of most efficient work practices
  • Optimum capacity utilization
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and World price of natural gas in the Oil & Gas Field Services industry impact industry performance..

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    Industry Products

    What is the Oil & Gas Field Services Industry?

    Operators in this industry provide support services on a fee or contract basis to companies involved in oil and gas extraction, mining and quarrying. Industry operators may also provide services such as drilling, taking core samples and making geological observations at prospective work sites.

    Industry Products
    Oilfield support services
    Oil drilling services
    Natural gas well support services
    Natural gas drilling services
    Coal mining support
    Metallic ore mining support
    Nonmetallic ore mining support
    Industry Activities
    Drilling oil and gas wells
    Surveying wells
    Running, cutting and pulling casings, tubes and rods
    Cementing wells
    Perforating well casings
    Acidizing and chemically treating wells
    Coal exploration
    Metal ore exploration
    Nonmetallic mineral ore exploration
    Contract mining

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • World price of natural gas
  • US oil and gas production index
  • Regulation for the Mining sector

  • Current Performance
  • Competition intensifies
  • Production trends upward
  • Consolidation increases
  • Wages and profitability
  • Regulatory concerns
  • Chart: Revenue Growth

  • Industry Outlook
  • Production remains strong
  • Price exposure and profitability
  • Regulatory concerns
  • Table: Oil & Gas Field Services Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Coal Mining
  • Gold & Silver Ore Mining
  • Molybdenum & Metal Ore Mining
  • Sand & Gravel Mining

  • Key Selling Industries
  • Engineering Services
  • Geophysical Services
  • Mining, Oil & Gas Machinery Manufacturing
  • Ocean & Coastal Transportation
  • Surveying & Mapping Services

  • Products & Services
  • Oilfield support services
  • Oil drilling services
  • Natural gas well support services
  • Natural gas drilling services
  • Metallic ore mining support
  • Coal mining support
  • Nonmetallic ore mining support
  • Chart: Oil & Gas Field Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil extractors
  • Gas extractors
  • Metallic ore mining industry
  • Coal mining industry
  • Nonmetallic ore mining industry
  • Chart: Major Market Segmentation for the Oil & Gas Field Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Marketing and rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Oil & Gas Field Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil & Gas Field Services Industry

  • Industry Globalization
    Major Companies
    Halliburton CompanySchlumberger Limited
  • Table: Halliburton Company - financial performance
  • Table: Schlumberger Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Oil & Gas Field Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Oil & Gas Field Services Industry
  • 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
    Jargon & Glossary
    Day Rate
  • The daily price charged to a producer for a drill rig, drilling and associated costs of personnel and routine supplies.
  • Daywork Contract
  • A work agreement that outlines a basic day rate when drilling and lower rates when the rig is moving or when drilling operations are interrupted or restricted.
  • Drilling Rig
  • A machine used to drill holes for oil and natural gas wells.
  • Drillship
  • A ship fitted with oil and gas drilling equipment.
  • Hydraulic Fracturing (Fracking)
  • The process of using pressurized water, chemical additives and propping agents to fracture rock layers and release petroleum, natural gas or other substances so that they can be extracted.
  • Jack-Up Rig
  • An offshore oil rig with a floating hull and retractable legs that can be lowered to the seabed for support.
  • Semi-Submersible Rig
  • A mobile offshore drilling or production unit that floats on the water's surface above the subsea wellhead and is held in position either by anchors or dynamic positioning.
  • Well Logging
  • The practice of making a detailed record (a well log) of the geologic formations penetrated by a borehole.
  • Workover
  • The repair or stimulation of an existing production well for the purpose of restoring, prolonging or enhancing the production of hydrocarbons.
  • Why buy this report?

    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 Field Services:
    • 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 Field Services 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 Field Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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