Slow dig: As commodity prices increase, demand will follow suit

The Oil and Gas Drilling Equipment Manufacturing industry has greatly benefited from a resurgence in the oil and gas extraction sector in the United States especially in the first-half of the five-year period. The emergence of hydraulic fracturing technology and horizontal drilling techniques significantly boosted demand for industry products during that period. However, the decline in oil prices beginning late 2014 impacted the industry significantly. Demand is expected to recover over the next five years, as the United States continues to emphasize on energy self-sufficiency. Trade plays an important role in the industry, with exports accounting for nearly one-third of industry revenue...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 11-16
-17.9%
Forecast Growth 16-21
Profit
Employment
28,515
Businesses
539
What Our Customers Say

Industry Threats & Opportunities

  • Increasing commodity prices will likely drive demand for the industry’s products
  • Exports have taken a hit with an overall decline in oil prices
  • The importance of new technological development boosts demand for highly skilled workers
  • Industry Report - Starting a New Business Chapter

    The Oil and Gas Drilling Equipment Manufacturing industry exhibits a moderate level of barriers to entry. The industry relies on laborers to manufacture the drilling equipment, but at the same time relies on workers who employ intellectual capital working on drilling equipment designs. As a result, significant capital investment is involved in the manufacturing process as well as the research and development process. Participants in this industry have a well-established line of patents; as a result, new entrants who wish to use an existing patent must pay for said patent, further requiring significant outlays...purchase to read more.

    Additional Insights for the Oil and Gas Drilling Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil and Gas Drilling Equipment Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Concentration on core business
  • Production of premium goods and services
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and World price of natural gas in the Oil and Gas Drilling Equipment Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Oil and Gas Drilling Equipment Manufacturing Industry?

    This industry manufactures oil and gas drilling machinery and equipment.

    Industry Products
  • Rotary Oil and gas field drilling machinery
  • Oil and gas field production machinery
  • Other oil and gas field drilling machinery
  • Portable drilling rigs and parts
  • Industry Activities
  • Manufacturing oil and gas field machinery and equipment
  • Manufacturing rotary oil and gas field drilling machinery and equipment
  • Manufacturing other oil and gas field drilling machinery and equipment
  • Manufacturing portable drilling rigs and parts
  • Manufacturing offshore oil and gas drilling machinery and equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • World price of natural gas
  • Demand from oil drilling and gas extraction
  • US energy production
  • Trade-weighted index

  • Current Performance
  • The shale revolution and environmental considerations
  • Oil Prices take a nosedive
  • Trade remains vital
  • Chart: Revenue Growth

  • Industry Outlook
  • Shale development continues
  • Trade growth
  • Price improvements
  • Table: Oil and Gas Drilling Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil and Gas Drilling Equipment Manufacturing Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Ferrous Metal Foundry Products
  • Metal Stamping & Forging
  • Steel Rolling & Drawing

  • Products & Services
  • Rotary Oil and gas field drilling machinery
  • Oil and gas field production machinery
  • Other oil and gas field drilling machinery
  • Portable drilling rigs and parts
  • Chart: Oil and Gas Drilling Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Onshore
  • Exports
  • Offshore
  • Chart: Major Market Segmentation for the Oil and Gas Drilling Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, other, marketing, rent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Oil and Gas Drilling Equipment Manufacturing

  • Basis of Competition
    Internal CompetitionExternal Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil and Gas Drilling Equipment Manufacturing Industry

  • Industry Globalization
    National Oilwell Varco Inc.Halliburton CompanyBaker Hughes Inc.Schlumberger Limited
  • Table: National Oilwell Varco Inc. - financial performance
  • Table: Halliburton Company - financial performance
  • Table: Baker Hughes Inc. - financial performance
  • Table: Schlumberger Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil and Gas Drilling Equipment Manufacturing 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 and Gas Drilling Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (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
    Bakken Formation
  • A geological formation located beneath North Dakota and Montana that contains significant shale oil and gas deposits
  • Eagle Ford Formation
  • Sedimentary rock formation located in Southern Texas that is rich in shale gas deposits
  • Hydrocarbons
  • An organic compound found mostly in crude oil that, when processed, acts as a significant energy source.
  • Shale Gas
  • Natural gas trapped in low permeable shale rock formations.
  • Wellbore
  • a hole drilled for the exploration for or extraction of natural resources, such as oil and gas
  • Why buy this report?

    IBISWorld’s Oil and Gas Drilling Equipment Manufacturing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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 and Gas Drilling Equipment Manufacturing:
    • 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 and Gas Drilling Equipment Manufacturing 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 and Gas Drilling Equipment Manufacturing, 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