The big spill: Declining oil prices will temporarily cause industry revenue to fall

The Hydraulic Fracturing Services industry grew early in the five-year period, when high oil and gas prices stimulated demand for well stimulation services. However, with hydraulically fractured wells no longer profitable, industry demand has tumbled drastically in recent years. In the coming years, US crude oil and natural gas prices are anticipated to steadily grow. The planned Keystone XL pipeline, as well as other pipeline infrastructure projects, will bolster oil and gas export capacity, boosting revenue...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 11-16
-7.6%
Forecast Growth 16-21
Profit
Employment
22,058
Businesses
1,055
What Our Customers Say

Industry Threats & Opportunities

  • Increased government scrutiny may lead to greater regulatory oversight and higher operating costs
  • Technological development has helped to minimize the cost of fracturing fluids
  • As the supply of oil and natural gas declines and demand expands, prices are forecast to rise
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Hydraulic Fracturing Services industry are high. Substantial capital and labor investment is required to begin operations. Industry operators must invest expensive equipment as well as hire a highly-skilled staff that is trained and experienced in hydraulic fracturing and oil and gas field service operations in general. Additionally, industry entrants must have enough capital at their disposal to invest in research and development to keep pace with the technological advances of the industry as a whole.New entrants are also confronted with the immense difficulty of competing with established industry operators, especially the industry's four largest players: Halliburton, Schlumberger, Baker and Hughes and FTS International. Sma...purchase to read more.

    Additional Insights for the Hydraulic Fracturing Services Industry

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

  • Having a high prior success rate (including completed prior contracts)
  • Optimum capacity utilization
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Demand from oil drilling and gas extraction and World price of crude oil in the Hydraulic Fracturing Services industry impact industry performance..

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    What is the Hydraulic Fracturing Services Industry?

    This industry provides hydraulic fracturing services for oil and natural gas extraction companies. Wells that have been hydraulically fractured are able to access otherwise largely inaccessible tight oil, shale gas and tight gas.

    Industry Products
  • Hydraulic fracturing services
  • Super hydraulic fracturing services
  • Other services
  • Industry Activities
  • Hydraulic fracturing services
  • Super hydraulic fracturing services
  • Other services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from oil drilling and gas extraction
  • World price of crude oil
  • World price of natural gas
  • Regulation

  • Current Performance
  • Pricing pressures
  • Health hazards
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic production grows
  • Regulations rise
  • Table: Hydraulic Fracturing Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Coal Mining

  • Key Selling Industries
  • Metal Pipe & Tube Manufacturing
  • Oil & Gas Field Services
  • Pump & Compressor Manufacturing

  • Products & Services
  • Hydraulic fracturing services
  • Super hydraulic fracturing services
  • Other services
  • Chart: Hydraulic Fracturing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil drilling operations
  • Gas extraction operations
  • Other
  • Chart: Major Market Segmentation for the Hydraulic Fracturing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Hydraulic Fracturing Services

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    Halliburton CompanySchlumberger LimitedBaker Hughes Inc.FTS International
  • Table: Halliburton Company - financial performance
  • Table: Schlumberger Limited - financial performance
  • Table: Baker Hughes Inc. - financial performance
  • Table: FTS International - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hydraulic Fracturing 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 Hydraulic Fracturing Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Price of Natural Gas (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Coalbed Methane
  • A form of natural gas extracted from coal beds. Also known as coalbed gas, coal seam gas and coal-mine methane.
  • Day Rate
  • The daily price charged to oil and natural gas extracting companies for the carrying out of hydraulic fracturing services.
  • Hydraulic Fracturing
  • The process of utilizing 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.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been cooled to a very low temperature until it becomes liquid. Used to transport natural gas via tanker overseas.
  • Shale
  • A fine-grained sedimentary rock formed by consolidation of clay- and silt-sized particles into thin, relatively impermeable layers. Some shale deposits contain large quantities of oil or natural gas.
  • Why buy this report?

    The Hydraulic Fracturing Services 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
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    This report on Hydraulic Fracturing 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 Hydraulic Fracturing 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 Hydraulic Fracturing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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