Crude awakening: Declining commodity prices has caused significant contractions in industry revenue

The Oil Drilling and Gas Extraction industry in Canada is highly dependent on global market prices of crude oil and natural gas. The industry experienced booming growth in the years leading up to the reporting period, with rising prices leading to significant growth in investment. Despite these revenue difficulties, Canada remains one of the largest energy producers in the world. Expanded use of hydraulic fracturing and horizontal drilling techniques has enabled industry operators to tap into previously uneconomical deposits. Over the five years to 2024, the industry is expected to continue its recovery due to rising domestic production and improved infrastructure which will likely bolster domestic more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Canada remains one of the largest export sources of oil and gas products
  • Natural gas and crude oil have experienced significant price volatility
  • Demand for industry products is expected to continue to recover
  • Industry Report - Industry Locations Chapter

    The spread of establishments within the Oil Drilling and Gas Extraction industry in Canada is entirely linked to the availability of the industry's underlying commodities across the country. As a result, the majority of industry activity is focused in Alberta, which is home to an estimated 69.8% of industry establishments in 2019. Other significant producers include British Columbia, which accounts for 9.7% of industry establishments in 2019, and Saskatchewan, accounting for 9.8% of establishments. Alberta is home to the Athabasca oil sands, which are large deposits of bitumen, or heavy crude oil. These oil sands are located in northeastern Alberta and are a major draw to the region as many companies currently work out of these oil sands. For example, Suncor Energy Inc., on...purchase to read more.

    Additional Insights for the Oil Drilling & Gas Extraction Industry

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

  • Economies of scale
  • Downstream ownership links
  • Ability to find new resource deposits
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and World price of natural gas in the Oil Drilling & Gas Extraction industry impact industry performance..

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    What's in this report

    What is the Oil Drilling & Gas Extraction Industry?

    Companies in this industry operate and develop oil and gas field properties. Activities include the exploration and production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the exploration and production of natural gas, sulphur recovery from natural gas and recovery of hydrocarbon liquids. Companies may operate oil and gas wells on their own account or for others on a contract or fee basis.

    Industry Products
  • Oil sands
  • Conventional oil
  • Natural gas
  • Industry Activities
  • Oil extraction
  • Natural gas extraction
  • Exploration of crude oil and natural gas
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • World price of natural gas
  • Canadian effective exchange rate index
  • US Gross domestic product (GDP)

  • Current Performance
  • Rising oil sands production
  • Price instability slashes revenue despite production growth
  • The importance of trade continues
  • Chart: Revenue Growth

  • Industry Outlook
  • Expanding operations
  • Global prices and international trade
  • Table: Oil Drilling & Gas Extraction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Natural Gas Distribution in Canada
  • Petroleum Refining in Canada

  • Key Selling Industries
  • Metal Pipe & Tube Manufacturing in Canada
  • Oil & Gas Field Services in Canada
  • Pump & Compressor Manufacturing in Canada

  • Products & Services
  • Oil sands
  • Natural gas
  • Conventional oil
  • Chart: Oil Drilling & Gas Extraction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Oil refineries
  • Natural gas distribution
  • Chart: Major Market Segmentation for the Oil Drilling & Gas Extraction Industry

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

  • Basis of Competition
    Price competitionOil gradesImpuritiesSecurity
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil Drilling & Gas Extraction Industry

  • Industry Globalization
    Suncor Energy Inc., Canadian Natural Resources Limited, Imperial Oil Limited,
  • Table: Suncor Energy Inc. - financial performance
  • Table: Canadian Natural Resources Limited - financial performance
  • Table: Imperial Oil Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil Drilling & Gas Extraction 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 Drilling & Gas Extraction Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (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)
  • Crude oil production (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Natural Gas
  • Gases that consist primarily of methane but also include small amounts of heavier hydrocarbons such as propane and butane.
  • Offshore Platforms
  • Structures located in the ocean that are designed to extract oil or gas from underneath the seabed.
  • Oil Sand
  • A deposit containing a mix of clay, sand and water that is saturated with dense and viscous petroleum.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil Drilling & Gas Extraction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Oil Drilling & Gas Extraction:
    • 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 Drilling & Gas Extraction 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

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