Upstream projects support demand for industry services
Melbourne, Australia (PRWEB) July 05, 2013
The Oil and Gas Field Services industry in Australia has grown strongly in the past five years and is expected to continue to do so in the next five. According to IBISWorld industry analyst Caroline Finch, "the rapid increase in industry revenue is being underpinned by high demand from the Oil and Gas Extraction industry, where an unprecedented number of oil and gas projects are underway." In the five years through 2013-14, industry revenue is forecast to grow at a compound annual rate of 23.4%.
Demand for industry services is contingent on activity in the upstream Petroleum Exploration industry and the Oil and Gas Extraction industry. "Exploration is important, because it identifies resources that are necessary for future sector growth," says Finch. When these resources become proven reserves of oil and gas, the Oil and Gas Extraction industry steps in to develop them. Participants in the Oil and Gas Field Services industry benefit at this stage, as they provide crucial third-party site preparation and construction services.
The industry has been well positioned to meet demand as investment in conventional and unconventional gas projects has boomed. Trends towards outsourcing of support services have increased the scope of industry activity. The legacy of consolidation in the 1990s is that the industry is dominated by large, global mining support services companies. These players have been able to market the depth and breadth of their capabilities successfully to oil and gas extraction giants. The three largest players in the industry are Leighton Holdings Limited, Downer EDI Limited and WorleyParsons Limited. In the next five years, new projects in the Oil and Gas Extraction industry will support demand for industry services, with construction and site preparation services expected to grow as a share of revenue.
For more information, visit IBISWorld’s Oil and Gas Field Services report in Australia industry page.
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IBISWorld Industry Report Key Topics
Firms in this industry provide support services and maintenance services on a fee or contract basis to companies involved in oil and gas extraction.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.