Crude awakening: Volatile oil prices hinder growth, but new extraction technology presents opportunity

The Oil Drilling and Gas Extraction industry is highly dependent on global market prices of crude oil and natural gas. Even though production of both the commodities has increased consistently over the past five years, industry has shrunk on account of declining prices of both these commodities. However, Canada still continues to be one of the largest energy producers in the world. Hydraulic fracturing and horizontal drilling techniques experienced a surge in popularity and effectiveness over the past five years. These techniques enabled industry operators to tap into previously uneconomical deposits, most notably in the oil sands of Alberta. Over the five years to 2023, the industry is expected to recover, thanks to improving oil prices...read more.

Industry Statistics & Market Size
Revenue
$102bn
Annual Growth 13-18
-4.7%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
57,305
Businesses
5,659
Market Share of Companies

Industry Threats & Opportunities

  • Despite volatile oil prices, Canada remains one of the largest energy producers in the world
  • Natural gas and crude oil have experienced significant price volatility
  • Improving technologies and extraction techniques are expected to lower production costs

    • shopping_cartPURCHASE OPTIONS Whats in this report faqs Download Sample
    IBISWorld client - ADP Watch Testimonial
    ... DigiCert Seal

    Industry Report - Industry SWOT Analysis Chapter

    The Oil Drilling and Gas Extraction industry in Canada is in the mature stage of its life cycle. Industry value added, a measure of the industry’s contribution to the overall economy, is expected to decline at an annualized 1.4% over the 10 years to 2023 as opposed to an annualized 1.9% growth in Canadian GDP. Although negative IVA growth alongside a growing economy is typically indicative of a declining industry, this industry is closely linked to the prices of crude oil and natural gas, which depend on cyclical global demand and supply conditions that are not necessarily linked to the domestic economy. As a result, industry IVA is not necessarily aligned with GDP growth over a given time frame.However, the industry does exhibit many characteristics of a mature industry. For...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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    Industry Products

    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
  • Crude oil
  • Natural gas
    • Industry Activities
  • Oil extraction
  • Natural gas extraction
  • Exploration of crude oil and natural gas
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    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

    • Products & Markets

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

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

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciation, wages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Oil Drilling & Gas Extraction

    • Basis of Competition
  • Price competition
  • Oil grades
  • Impurities
  • Security

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil Drilling & Gas Extraction Industry

    • Industry Globalization

    Major Companies

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

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Oil Drilling & Gas Extraction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Crude oil production (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    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 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 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

    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 Drilling & Gas Extraction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Become a Member shopping_cartPURCHASE OPTIONS

    Contact Us

    Want to speak to a representative? Call us.

    phone 1-800-330-3772    OR     Inquire Here
    clear