Uneven ground: Comparatively low crude oil prices are expected to limit industry growth

The Geophysical Services industry's heavy reliance on energy companies has resulted in extreme revenue fluctuations, with revenue rising substantially prior to the current five-year period, thanks to skyrocketing crude oil prices following the economic downturn. However, the tempering of oil prices and their ultimate collapse has led to declining revenue. Industry revenue is projected to grow over the next five years, hampered by rising crude oil prices. Since industry growth generally follows the projected rise of investment in US petroleum and natural gas exploration, growth in energy prices will likely result in more demand for the assessment of onshore natural gas deposits and reservoirs...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-11.0%
Forecast Growth 17-22
Profit
Employment
14,335
Businesses
4,394
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • The collapse in oil prices has caused profit margins to remain flat
  • Declines in industry revenue have been distorted by large annual fluctuations in demand
  • Concentration among the industry’s clients increased, growing purchasing power
  • Industry Report - Starting a New Business Chapter

    The Geophysical Services industry has significant barriers to entry, chiefly high business start-up costs, service oversupply in the global market and the difficulties associated with establishing a foothold among a narrowing client base.Excess supplyThis industry frequently operates in conditions of excess supply, with more capital equipment and industry operators available than demand necessary to sustain them. For example, in August 2004, the World Geophysical News (WGN) reported that 163 seismic crews were operating globally with another 352 crews sitting idle. In the US market, capacity utilization was much higher than the global average with 49 out of 60 total crews in service, a rate of 80.0%...purchase to read more.

    Additional Insights for the Geophysical Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Geophysical Services Industry are

  • Development of a symbiotic relationship with another industry
  • Access to the latest available and most efficient technology and techniques
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Oil and natural gas price index and Demand from mining in the Geophysical Services industry impact industry performance..

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    What is the Geophysical Services Industry?

    Operators in this industry gather, interpret and map geophysical data. Companies often specialize in locating and measuring the extent of subsurface resources, such as oil, gas and minerals, but may also conduct surveys for engineering purposes. Companies also use a variety of surveying techniques depending on the purpose of the survey, including magnetic, gravity, seismic or electrical and electromagnetic surveys.

    Industry Products
  • Geophysical data collection
  • Other specialized services
  • Geophysical data sales
  • Integrated geophysical services
  • Industry Activities
  • Geophysical surveying and mapping of subsurface terrain or formations.
  • Identifying subsurface fault lines and mineral deposits.
  • Magnetic surveys
  • Gravity surveys
  • Seismic surveys
  • Electrical and electromagnetic surveys
  • Geophysical surveying for metal mining (contract basis)
  • Geophysical surveying for oil and gas fields (contract basis)
  • Geophysical surveying for nonmetallic minerals (contract basis)
  • 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
  • Demand from mining
  • Value of residential construction
  • World price of natural gas

  • Current Performance
  • Volatile market conditions
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Energy prices
  • Recovering profit
  • Table: Geophysical Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Geophysical Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Oil Drilling & Gas Extraction
  • Water Supply & Irrigation Systems
  • Construction
  • Public Administration

  • Key Selling Industries
  • Charter Flights
  • Computer & Packaged Software Wholesaling
  • Heavy Equipment Rental
  • IT Consulting
  • Laboratory Supply Wholesaling
  • Ship Building
  • Space Research and Technology

  • Products & Services
  • Geophysical data collection
  • Other specialized services
  • Geophysical data sales
  • Integrated geophysical services
  • Chart: Geophysical Services Industry Products and Services Segmentation

  • Demand Determinants
  • Oil, gas and mineral exploration
  • Government demand

  • Major Markets
  • Oil and gas industries
  • Mineral mining industries
  • Other
  • Government departments and agencies
  • Chart: Major Market Segmentation for the Geophysical Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases and depreciationWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Geophysical Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Geophysical Services Industry

  • Industry Globalization
    Schlumberger LimitedCGG SA
  • Table: Schlumberger Limited - financial performance
  • Table: CGG SA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Geophysical Services 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 Geophysical Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World production of oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Geophysical Survey
  • Combination of the principles of geology and physics that are used to study the substrata of the Earth and its oceans. Used extensively in oil and gas exploration, mineral deposits and in archaeology.
  • Seismic Survey
  • Form of geophysical survey that measures the properties of the Earth by seismic waves using magnetic, electric, gravitational, thermal and elastic theories.
  • Survey Crew
  • Team of people who conduct seismic and other tests and exploratory drills to determine the properties of the Earth.
  • Why buy this report?

    The Geophysical Services Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

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

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