Oil & Gas Field Services in the US Industry Market Research Report from IBISWorld Has Been Updated

During the past five years, divergent US and global energy prices and fluctuations stemming from the recession resulted in volatile annual revenue growth. For this reason, industry research firm IBISWorld has updated a report on the Oil & Gas Field Services industry in its growing industry report collection.

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Demand will increase, but persistently low natural gas prices will constrain growth.

Los Angeles, CA (PRWEB) October 18, 2013

Operators in the Oil and Gas Field Services industry primarily provide services to oil and gas extractors, and demand is highly dependent on oil and natural gas prices. During the past five years, divergent US and global energy prices and fluctuations stemming from the recession resulted in volatile year-to-year revenue growth. Nevertheless, revenue has increased overall due to steadily growing global demand for energy, and in the five years to 2013, revenue has been rising.

According to IBISWorld Industry Analyst David Yang, “Rising oil and gas prices typically result in increased demand for industry services, especially if prices are expected to remain high.” The number of oil and gas drilling contracts rises with prices because previously unprofitable sites become more attractive to producers. In contrast, demand falls when oil and gas prices are low. In 2009, revenue plummeted due to sharp declines in crude oil and natural gas prices. A year later, recovering energy prices fueled revenue growth, even though government offshore drilling regulations increased following the Deepwater Horizon oil spill crisis.

The Oil and Gas Field Services industry has a low level of market share concentration, with the four largest firms (which includes Halliburton Company, Schlumberger Limited and Baker Hughes Incorporated) accounting for less than half of industry revenue (see IBISWorld report 21311 for major player market shares). While major players are multinational oilfield services firms, the majority of industry operators are comprised of small firms with very small market share. Concentration is particularly low among firms that supply support services for oil drilling and gas extraction on land. Conversely, concentration is higher in the offshore oil and gas extraction services segment, because these services require greater capital requirements.

Although US natural gas prices have plummeted since 2010, “the demand for oil and gas field services is projected to grow over the next five years as the global economy recovers,” says Yang. However, persistently low US natural gas prices will likely constrain revenue growth. Stringent offshore drilling permit regulations in the Gulf Coast will also offset some revenue gains stemming from increased crude oil prices. Nevertheless, US natural gas prices are forecast to increase slowly and US crude oil prices are projected to converge to international prices, resulting in positive revenue growth in the five years to 2018.

For more information, visit IBISWorld’s Oil & Gas Field Services in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in the Oil & Gas Field Services industry provide support services on a fee or contract basis to companies involved in oil and gas extraction, mining and quarrying. Industry operators may also provide services such as drilling; taking core samples; and making geological observations at prospective work sites. The vast majority of industry revenue comes from oil and gas extraction markets.

Industry Performance
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Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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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 every US industry. 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 or call 1-800-330-3772.


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