Oil slick: Falling oil and gas prices caused industry revenue to contract over the past five years

The Oil Drilling and Gas Extraction industry in Texas has had a bumpy ride over the five years to 2017. The increased adoption of innovative production methods, such as hydraulic fracturing and directional drilling, has significantly boosted oil and gas production levels the state. However, beginning in 2014, an oversupply in crude oil and natural gas slashed commodity prices, and caused industry reveue to fall over the past five years. Over the five years to 2022, the industy in forcast to return to growth, as oil and gas prices are expected to rise again in the wake of production cuts set by both Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, helping to boost industry revenue...read more.

Industry Statistics & Market Size
Revenue
$106bn
Annual Growth 12-17
-2.4%
Forecast Growth 17-22
Profit
Employment
86,655
Businesses
32,209
What Our Customers Say

Industry Threats & Opportunities

  • Weak oil and gas prices have eaten into industry operators’ profitability
  • Oil and gas producers in Texas are increasingly engaging in refracking of old wells
  • Prices of crude oil and natural gas will recover from recent lows, bolstering operators’ profit margins
  • Industry Report - Industry Investment Chapter

    The Oil Drilling and Gas Extraction industry in Texas is highly capital intensive. In 2017, for every dollar spent on wages, the average industry operator will invest an estimated $1.49 in capital equipment. Oil and gas producers rely heavily on large-scale drilling and extraction equipment rather than labor for output, which justifies the level of capital intensity. Drilling and extraction activities require specialized equipment, such as drilling rigs, drill bits and hydraulic power tongs. Still, oil field workers must also be highly skilled and trained, as evidenced by significantly high average wages in the industry. Capital intensity has risen over the five years to 2017 due to increased investment in innovative oil and gas drilling and exploration equipment...read more.

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

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil Drilling & Gas Extraction in Texas 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 Texas in the Oil Drilling & Gas Extraction in Texas industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

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

    Companies in this industry operate and develop oil and gas field properties in Texas. 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 and condensate
  • Natural gas
  • 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 Texas
  • Annual Natural Gas Production in Texas
  • Total vehicle miles

  • Current Performance
  • Growing pains
  • Global pressures
  • Challenges spur innovation
  • Chart: Revenue Growth

  • Industry Outlook
  • Price comeback
  • Competitive and regulatory pressures
  • Table: Oil Drilling & Gas Extraction in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil Drilling & Gas Extraction in Texas 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 and condensate
  • Natural gas
  • Chart: Oil Drilling & Gas Extraction in Texas Industry Products and Services Segmentation

  • Major Markets
  • Petroleum Refining industry
  • Natural Gas Distribution industry
  • Industrial users
  • Utilities
  • Chart: Major Market Segmentation for the Oil Drilling & Gas Extraction in Texas Industry

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

  • Basis of Competition
  • Price
  • Quality
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil Drilling & Gas Extraction in Texas Industry

  • Chesapeake Energy CorporationDevon Energy CorporationEOG Resources Inc.Pioneer Natural Resources Company
  • Table: Chesapeake Energy Corporation - financial performance
  • Table: Devon Energy Corporation - financial performance
  • Table: EOG Resources Inc. - financial performance
  • Table: Pioneer Natural Resources Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil Drilling & Gas Extraction in Texas 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 Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Annual Crude Oil Production in Texas (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.
  • Horizontal Drilling
  • A process by which drilling takes place horizontally. Horizontal drilling is a subset of directional drilling.
  • Natural Gas
  • Gases that consist primarily of methane but also include small amounts of heavier hydrocarbons such as propane and butane.
  • Natural Gas Liquids (Ngls)
  • Hydrocarbons such as ethane, propane, butane, pentane and isobutane.
  • Oil Field
  • An underground or undersea deposit of oil contained within a stable geological formation.
  • Organization Of Petroleum Exporting Countries
  • Abbreviated as OPEC, this global organization, consisting of 12 countries, is designed to create stability and control in the petroleum markets.
  • Why buy this report?

    The Oil Drilling & Gas Extraction in Texas 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 Oil Drilling & Gas Extraction in Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear