A major feature of the industry in China is the existing oligopoly among the three state-owned oil companies
Los Angeles, CA (PRWEB) November 11, 2011
Due to the lag between price changes and investment in developing new oil and gas fields, global investment into exploration and development is expected to decrease in the short term. Thus demand for mining support services will be reduced globally during the next a few years. However, the rapidly growing Chinese economy will continue to demand large amounts of energy. This demand will, in part, allow the Support Activities for Oil and Gas Mining industry in China to grow by 5.2% in 2012, according to IBISWorld, America's largest publisher of industry research.
In 2011, the Support Activities for Oil and Gas Mining industry is expected to generate revenue of US$28.3 billion, up 3.3% from 2010. This is much lower growth than the average level over the five years to 2011, according to IBISWorld.
Both export and import levels in the industry are low. Competing imports are estimated to account for 1.2% of domestic demand while exports are estimated to generate 1.6% of industry revenue. Most oil and gas mining support service companies operate in the domestic market and can generally satisfy domestic demand.
According to IBISWorld, a major feature of the Support Activities for Oil and Gas Mining industry in China is the existing oligopoly among the three state-owned oil companies, China National Petroleum Corporation, China Petrochemical Corporation and China National Offshore Oil Corporation.
Demand for oil and gas mining support services largely depends on investments by oil and gas mining companies in developing new oil or gas fields, or in expanding existing fields. In the next five-year period, industry revenue is expected to increase by an annualized 6.2% to US$38.28 billion in 2016. Competition within the industry is forecast to intensify with rising cost.
For more information, download IBISWorld’s report on Support Activities for Oil and Gas Mining in China
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Establishments within the Oil and Gas Mining Support Service industry provide support services for oil and gas mining companies, including directional drilling, drilling ahead, underground operations, oil testing, well testing, well logging, derrick erection, derrick repair and derrick removal. Oil and gas prospecting activities are not included in this industry.
Cleaning out, bailing and swabbing wells
Derrick erection, repair, removal and related services
Directional and vertical drilling
Underground operations and oil testing
Well cementing and completion
Well testing and logging
Support Activities for Oil and Gas Mining in China Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.