Overview

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

IBISWorld’s Offshore Oil Rig & Platform Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Analysis Chapter

    The Offshore Oil Rig and Platform Construction industry benefited from technological improvements in extraction techniques, strong demand and growth in the price of crude oil through 2013. Since then, the world price of crude oil declined steeply, negatively affecting industry performance. Though the industry suffered a setback after the Deepwater Horizon oil spill in 2010, it strongly recovered as rig owners sought to improve safety systems and rigs. In the five years to 2016, the industry is anticipated to decline at an annualized rate of 4.9% to total an estimated $1.7 billion. Regulatory uncertainty, weakening oil prices and strong onshore production constrained demand for new rig construction. In 2016, IBISWorld expects revenue to decline an additional 2.1%.

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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    Keppel Offshore & MarineGulf Island Fabrication Inc.
  • Table: Keppel Offshore & Marine - financial performance
  • Table: Gulf Island Fabrication Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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 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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