New York, NY (PRWEB) May 09, 2014
The Oil Drilling Equipment Manufacturing industry has greatly benefited from a resurgence in the oil and gas extraction sector in the United States. This industry provides machinery and equipment to oil and gas extractors. During the past five years, the emergence of hydraulic fracturing technology and horizontal drilling techniques has significantly boosted demand for industry products. Demand is expected to remain strong over the next five years, as the United States continues to emphasize its energy self-sufficiency and reduce its reliance on foreign imports of energy products. During the five years to 2014, industry revenue is expected to increase at an annualized rate of 3.5% to $19.3 billion, including expected growth of 1.8% in 2014.
According to IBISWorld Industry Analyst James Crompton, “Hydraulic fracturing and horizontal drilling have enabled downstream operators to tap into previously uneconomical deposits of oil and natural gas.” Consequently, machinery manufacturers have played an increasingly important role in the success of downstream operations. However, environmental safety concerns have been growing over the past five years. Therefore, oil drilling machinery and equipment manufacturers must ensure that their products can both economically and safely extract oil and gas deposits from both onshore and offshore deposits. The emphasis on environmental safety in oil and gas extraction is expected to increase, making it likely that environmental concerns for this industry will intensify.
Trade plays an important role in the industry, with exports accounting for nearly half of industry revenue. “During the next five years, as global oil and gas companies continue to explore for and develop resources, demand for industry exports is anticipated to increase,” says Crompton. Furthermore, increasing commodity prices will likely drive demand for the industry's products. The world prices of natural gas and crude oil are both expected to increase over the next five years. Additionally, US energy production is expected to increase at an annualized rate of 2.0% during the five years to 2014. As the United States continues to develop its natural resources, industry operators that manufacture high value-added products are most likely to benefit. During the five years to 2019, industry revenue is expected to increase.
For more information, visit IBISWorld’s Oil Drilling Equipment Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Oil Drilling Equipment Manufacturing industry manufacture oil and gas drilling machinery and equipment.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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