Hydraulic Fracturing Services in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) September 17, 2013 -- The Hydraulic Fracturing Services industry has grown over the past five years, because high oil and gas prices stimulated demand for petroleum extraction. Hydraulic fracturing, commonly known as fracking, is used to extract hard-to-reach underground crude oil and natural gas reserves. Because specialized oil field service providers can conduct hydraulic fracturing at lower costs, downstream oil and gas extraction firms turned to industry operators to provide fracturing services. According to IBISWorld Industry Analyst David Yang, "US natural gas production increased strongly at an annualized rate of 3.6% during the past five years due to hydraulic fracturing." As a result, IBISWorld expects industry revenue to grow at an annualized rate of 5.8% $8.4 billion in the five years to 2013.
However, the rapid rise in domestic oil and gas production resulted in an oversupplied market. US natural gas prices fell at an annualized rate of 16.0% during the past five years. "A glut of crude oil also built up in Cushing, OK, since 2011 due to a shortage of export pipelines, causing domestic crude oil prices to fall," said Yang. As petroleum prices fell, downstream demand for oil and gas extraction fell, thereby cutting into demand for hydraulic fracturing. Industry revenue is estimated to decline 12.4% in 2013 as a result.
US crude oil and natural gas prices are anticipated to steadily recover to stable levels during the next five years. The planned Keystone XL pipeline, as well as other pipeline infrastructure projects, will bolster oil and gas export capacity. As exports rise, US petroleum prices will converge to higher world petroleum prices, bolstering industry revenue and profitability. IBISWorld forecasts that revenue will grow in the five years to 2018. However, increased public and government scrutiny regarding hydraulic fracturing's environmental impact may lead to greater regulatory oversight, which can cause higher operating costs in the coming years.
The major players in this industry are Halliburton Company, Baker Hughes International, CalFrac Well Services, and Basic Energy Services.
For more information, including profit estimates, visit IBISWorld’s Hydraulic Fracturing Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Hydraulic Fracturing Services industry provides hydraulic fracturing services for oil and natural gas extraction companies. The technology allows oil and natural-gas extraction companies to reach hard-to-find natural gas below the sediment.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
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
Key Ratios
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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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