Lost at sea: Falling oil prices will take a toll on industry revenue

The Offshore Oil Rig and Platform Construction industry plays an important role in the United States' energy sector. The Deepwater Horizon oil spill in 2010 brought offshore drilling into the forefront of environmental debates regarding the costs of oil extraction. But the industry performed strongly following the end of the Obama administration's six-month moratorium on offshore drilling. Nonetheless, oil price weakness starting in 2014 is anticipated to weigh heavily on industry performance. Over the five years to 2016, IBISWorld expects industry revenue will decline at an annualized rate 4.9% to $1.7 billion, including a decline of 2.1% in 2016...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
-4.9%
Forecast Growth 16-21
Profit
Employment
2,894
Businesses
50
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Industry Threats & Opportunities

  • Industry operators rely on demand from upstream oil and gas producers
  • Steel is a primary input for offshore oil rigs and platforms
  • Regulatory concerns have the potential to affect the industry over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Offshore Oil Rig and Platform Construction industry is in the mature stage of its industry life cycle. The industry's value added, a measurement of its contribution to the overall economy, is projected to decline at annualized rate of 0.9% over the 10 years to 2021. This compares to US GDP growth of 2.1% over the same time period. While the industry is projected to decline relative to the wider economy, it is highly exposed to other industries and exogenous events. Additionally, the relatively small number of companies and the high level of concentration in the industry are indicative of a mature industry. Hig...purchase to read more.

    Additional Insights for the Offshore Oil Rig & Platform Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Offshore Oil Rig & Platform Construction Industry are

  • Access to multiskilled and flexible workforce
  • Ability to accommodate environmental requirements
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as US oil and gas production index and World price of crude oil in the Offshore Oil Rig & Platform Construction industry impact industry performance..

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    What is the Offshore Oil Rig & Platform Construction Industry?

    This industry constructs offshore drilling platforms, also known as oil rigs, for oil exploration companies. Many operators also provide offshore platform support services.

    Industry Products
  • Jack-ups
  • Semi-submersibles
  • Drill ships
  • Industry Activities
  • Fabricating oil rig and platform structural component parts
  • Offshore assembly of oil rigs and platforms
  • Maintenance, repair and upgrade services for existing offshore oil rigs and platforms
  • Fabrication of support vessels for offshore oil rig and platform maintenance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • US oil and gas production index
  • World price of crude oil
  • Prime rate
  • World price of steel

  • Current Performance
  • Production boom driving performance
  • Profitability steady
  • Government involvement
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong production to persist
  • Profitability expansion
  • Potential threats
  • Table: Offshore Oil Rig & Platform Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Offshore Oil Rig & Platform Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Engineering Services

  • Key Selling Industries
  • Concrete Pipe & Block Manufacturing
  • Heavy Equipment Rental
  • Metal Pipe & Tube Manufacturing
  • Screw, Nut & Bolt Manufacturing

  • Products & Services
  • Drill ships
  • Other
  • Jack-ups
  • Semi-submersibles
  • Chart: Offshore Oil Rig & Platform Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Less than 500 feet
  • Greater than 10,000 feet
  • 501 feet to 9,999 feet
  • Chart: Major Market Segmentation for the Offshore Oil Rig & Platform Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Offshore Oil Rig & Platform Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Offshore Oil Rig & Platform Construction Industry

  • Industry Globalization
    Keppel Offshore & MarineGulf Island Fabrication Inc.
  • Table: Keppel Offshore & Marine - financial performance
  • Table: Gulf Island Fabrication Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Offshore Oil Rig & Platform Construction 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 Offshore Oil Rig & Platform Construction Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • World price of crude oil (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Backlog
  • Accumulated work orders that have yet to be acted upon
  • Day Rate
  • The amount of money an oil company pays a drilling contractor for a day's worth of rig operation
  • Downtime
  • Period in which a rig is not operational and cannot work.
  • Pontoon
  • A hollow metal cylinder used to support a platform.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Offshore Oil Rig & Platform Construction is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Offshore Oil Rig & Platform Construction:
    • 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 Offshore Oil Rig & Platform Construction 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 Offshore Oil Rig & Platform Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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