Over the three years to 2014, the price of oil and gas field consulting services is anticipated to grow primarily on the back of robust revival in the construction sector
Los Angeles, CA (PRWEB) November 30, 2014
Oil and gas field consulting services have a buyer power score of 2.7 out of 5, which signals relatively low purchasing power. The weak buyer power is primarily shaped by the low availability of substitutes, high level of specialization and significant switching costs. At the same time, the low level of vendor financial risk and the fragmented nature of the market act as redeeming factors, facilitating buyer power to an extent.
“The highly specialized nature of consulting services for oil and gas fields warrants the need for customized solutions,” according to IBISWorld business research analyst, Agiimaa Kruchkin. As a result, there are virtually no substitutes for oil and gas field consulting services, which hampers buyer negotiation power. Similarly, the level of switching costs is significant due to penalty fees associated with changing vendors. On the other hand, the low level of market share concentration fuels price-based competition in the market, especially among small vendors. Furthermore, operators in this market experience a low level of vendor financial risk due to the steady stream of demand, which benefits buyers.
The rising world production of oil has boosted demand for consulting services over the past three years, as large oil companies hired these specialists to maximize the service life of their oil field and to increase their oil recovery rates. “Likewise, the expanding industrial production index and the robust growth in the value of construction have fueled demand for oil and gas field consulting, in turn driving service prices,” says Kruchkin. Furthermore, stringent regulatory environment concerning oil drilling and gas extraction processes have raised demand for consulting services. Key downstream buyers increasingly hire these consultants to mitigate potential risks associated with legislation. Overall, in the three years to 2014, the pricing environment has largely favored suppliers. Nonetheless, buyers can benefit from establishing multiyear supply contracts, thus hedging against the risk of price volatility, while locking in the price over the duration of the agreement. Major vendors include Schlumberger Ltd., Halliburton Company and Fluor Corporation. For more information, visit IBISWorld’s Oil & Gas Field Consulting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of oil and gas field consulting services. Vendors provide a variety of consulting services as it pertains to data analytics, finance strategy, surveying, research and development, logistics and distribution, supply chain planning and talent management, among other solutions. Operators also offer oil and gas technology licensing services. This report does not cover oil and gas engineering services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.