Broken pipe: Upstream operators have cancelled or postponed projects due to declining revenue

The Oil and Gas Pipeline Construction industry in Canada has experienced significant volatility over the five years to 2019. According to the National Energy Board, oil sands production has risen significantly over the past decade, and expansion in oil and gas production in Canada has prompted investment into accompanying infrastructure, causing industry revenue to rise sharply previous to the report period. The domestic extraction industry has experienced difficulties due to a lack of pipeline infrastructure capable of getting domestic production efficiently to export markets. In turn, this has contributed to the depressed prices of domestic crude oil. The industry is projected to expand over the five years to 2024, buoyed by sustained oil sands production in particular...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
-4.4%
Forecast Growth 19-24
Profit
Employment
38,084
Businesses
3,059
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Low domestic oil and natural gas prices has constrained investment
  • Many upstream oil and gas extraction customers scaled back investment into new production facilities
  • Oil sands production growth will be the primary demand driver of industry services
  • Industry Report - Industry Products Chapter

    Oil and natural gas production facilitiesOil and natural gas production facilities in the Oil and Gas Pipeline Construction industry in Canada account for 59.6% in 2019. While such facilities have consistently accounted for the majority of industry revenue, their share has recently fallen. This is due to the difficult operating conditions that downstream oil and gas companies have been facing, prompting them to pull back spending on such facilities until conditions improve. However, as prices begin to recover, it is likely that it will continue growing as producers invest in new projects that will drive demand for the construction of new production facilities...purchase to read more.

    Additional Insights for the Oil & Gas Pipeline Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil & Gas Pipeline Construction Industry are

  • Ability to accommodate environmental requirements
  • Having a good reputation
  • Having a high prior success rate
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and World price of crude oil in the Oil & Gas Pipeline Construction industry impact industry performance..

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    What's in this report

    What is the Oil & Gas Pipeline Construction Industry?

    This industry constructs gas and oil pipelines, mains, pumping stations, refineries, storage tanks and other related structures.

    Industry Products
  • Oil and natural gas pipelines
  • Oil refineries
  • Natural gas processing plants
  • Oil and natural gas production facilities
  • Industry Activities
  • Petrochemical plant construction
  • Petroleum refinery construction
  • Construction management for oil and gas
  • Distribution pipeline construction
  • Oil and gas transportation pipeline construction
  • Gas processing plant construction
  • Storage tank construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • World price of crude oil
  • World price of natural gas
  • Overnight rate
  • World price of steel

  • Current Performance
  • Slowing pipeline investment
  • Faltering growth in production facilities
  • Growth in downstream expenditure
  • Industry expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Oil sands lead the way
  • Construction investments grow
  • Table: Oil & Gas Pipeline Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil & Gas Pipeline Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction in Canada
  • Natural Gas Distribution in Canada
  • Petroleum Refining in Canada
  • Oil Pipeline Transportation in Canada
  • Gas Pipeline Transportation in Canada

  • Key Selling Industries
  • Construction Machinery Manufacturing in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Metal Tank Manufacturing in Canada
  • Structural Metal Product Manufacturing in Canada
  • Valve Manufacturing in Canada

  • Products & Services
  • Oil and natural gas production facilities
  • Oil and natural gas pipelines
  • Natural gas processing plants
  • Other
  • Oil refineries
  • Chart: Oil & Gas Pipeline Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil sector
  • Natural gas sector
  • Chart: Major Market Segmentation for the Oil & Gas Pipeline Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Oil & Gas Pipeline Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil & Gas Pipeline Construction Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Oil & Gas Pipeline Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Oil & Gas Pipeline Construction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • World price of crude oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Downstream
  • The downstream oil and gas sector includes refineries and gas processors.
  • Midstream
  • The midstream oil and gas sector is composed of oil and gas pipeline operators, energy storage facilities and other energy transporters.
  • Upstream
  • The upstream oil and gas sector is composed of oil and gas extractors.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil & Gas Pipeline Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Oil & Gas Pipeline Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Oil & Gas Pipeline Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Oil & Gas Pipeline Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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