Line by line: Due to favorable economic conditions, the industry will experience higher demand in Texas

The Natural Gas Distribution industry in Texas has experienced ups and downs over the five years to 2017. Industry revenue has increased moderately; however, this growth rate masks year-on-year revenue volatility prompted by significant changes in the price of natural gas. Although demand for industry services is strongly contingent upon the price of natural gas, as well as for competing sources of energy, downstream consumers lack the flexibility that allows them to easily switch to a different type of fuel in times of high prices. Therefore, industry revenue has been rising over the five years to 2017, despite the overall increase in the price of natural gas. Over the next five years, industry revenue is anticipated to accelerate...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Industry revenue has grown over the period, despite volatile natural gas prices
  • Natural gas consumption in the state has gained steam due to increased affordability
  • The shale gas boom has made natural gas an attractive source of fuel around the country
  • Industry Report - Industry Investment Chapter

    The Natural Gas Distribution industry in Texas is highly capital intensive. Most of the industry's capital assets are in the form of pipelines, storage and other distribution facilities, thereby contributing to a significant level of capital intensity. In 2017, for every dollar spent on wages, the average industry operator will invest an estimated $0.75 in capital equipment. Capital intensity has trended upward over the past five years due to growing demand for energy...purchase to read more.

    Additional Insights for the Natural Gas Distribution in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Natural Gas Distribution in Texas Industry are

  • Ability to negotiate successfully with regulators
  • Supply contracts in place for key inputs
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Price of natural gas and Electric power consumption in the Natural Gas Distribution in Texas industry impact industry performance..

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    What's in this report

    What is the Natural Gas Distribution in Texas Industry?

    The majority of companies in this industry manage gas distribution systems consisting primarily of gas mains and meters that transport gas to end users in Texas. Other industry operators are gas marketers that buy gas directly from the well and sell it to a distribution system, while some others are gas brokers or agents that arrange for gas to be sold via distribution systems operated by other companies.

    Industry Products
  • Natural gas distribution
  • Natural gas marketing and brokering
  • Industry Activities
  • Operating gas distribution systems (e.g. mains and meters)
  • Buying gas from a well and selling it to a distribution system
  • Acting as gas brokers or agents that arrange the sale of gas over gas distribution systems
  • Transmitting and distributing gas to final consumers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of natural gas
  • Electric power consumption
  • Manufacturing GDP for Texas
  • Housing starts in Texas

  • Current Performance
  • Climbing consumption rates
  • Competitive pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand trends
  • Improvements in profitability
  • Table: Natural Gas Distribution in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Natural Gas Distribution in Texas Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Petrochemical Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Coal & Natural Gas Power

  • Key Selling Industries
  • Gas Pipeline Transportation
  • Gasoline & Petroleum Bulk Stations
  • Gasoline & Petroleum Wholesaling
  • Oil & Gas Pipeline Construction
  • Oil Drilling & Gas Extraction

  • Products & Services
  • Natural gas distribution
  • Natural gas marketing and brokering
  • Other
  • Chart: Natural Gas Distribution in Texas Industry Products and Services Segmentation

  • Major Markets
  • Electric power
  • Industrial
  • Residential
  • Commercial
  • Transportation
  • Chart: Major Market Segmentation for the Natural Gas Distribution in Texas Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, distribution and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Natural Gas Distribution in Texas

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Natural Gas Distribution in Texas Industry

  • Enbridge Energy Partners LP, Atmos Energy Corporation, CenterPoint Energy, SiEnergy LP, West Texas Gas Inc.,
  • Table: Enbridge Energy Partners LP - financial performance
  • Table: Atmos Energy Corporation - financial performance
  • Table: CenterPoint Energy - financial performance
  • Table: SiEnergy LP - financial performance
  • Table: West Texas Gas Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Natural Gas Distribution 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 Natural Gas Distribution in Texas Industry
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • US Natural Gas Prices (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The point where major gas transmission pipelines end and the gas enters the distributor's system.
  • Distribution Network
  • A system of pipes used to transport natural gas from the citygate to customers.
  • Mercaptan
  • A colorless yet foul-smelling gas that is added to natural gas to help identify a leak.
  • Natural Gas
  • A naturally occurring gas that consists of 50.0% to 90.0% methane and small amounts of heavier hydrocarbons such as propane and butane.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Natural Gas Distribution in Texas 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 Natural Gas Distribution 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 Natural Gas Distribution 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 Natural Gas Distribution in Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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