Out of gas: Depressed oil prices and poor pipeline infrastructure will dampen industry demand

Operators in the Oil and Gas Field Services industry in Canada have experienced volatile market conditions over the past five years. Sharp declines in the world prices of crude oil and natural gas contracted revenue over the past five years. Over the next five years, IBISWorld projects industry revenue will grow facilitated by an expansion of pipeline infrastructure throughout Canada, which will enable downstream companies to more easily export crude oil and natural gas and charge higher prices for these products on international markets...read more.

Industry Statistics & Market Size
Revenue
$28bn
Annual Growth 12-17
-5.8%
Forecast Growth 17-22
Profit
Employment
77,657
Businesses
14,525
Market Share of Companies

Industry Threats & Opportunities

  • As oil and natural gas prices have declined, demand for oil drilling services has decreased
  • Low domestic natural gas and oil prices have reduced demand for drilling
  • As oil and gas prices rise, downstream companies will seek to expand production
  • Industry Report - Industry Locations Chapter

    The distribution of industry companies, measured using the level of capital expenditure in each province, matches the overall distribution of the oil, gas and minerals sector in Canada. For example, Alberta accounts for the majority of downstream oil and gas extraction companies, while British Columbia accounts for about a sizable number of coal mining companies. As a result, 57.5% of industry operators are located in Alberta, while 16.0% of operators are located in British Columbia. Another region with a significant proportion of natural resource extraction companies is Saskatchewan, which is home to 11.6% of industry operators. Ove...purchase to read more.

    Additional Insights for the Oil & Gas Field Services Industry

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

  • Ability to accommodate environmental requirements
  • Access to the latest available and most efficient technology and techniques
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from oil drilling and gas extraction and World price of crude oil in the Oil & Gas Field Services industry impact industry performance..

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    What's in this report

    What is the Oil & Gas Field Services Industry?

    Industry operators provide support services to oil and gas extraction companies and mining and quarrying companies. These services include drilling, reserve estimates, pressure pumping, cementing and well maintenance.

    Industry Products
  • Oil and gas exploration drilling
  • Oil development drilling
  • Gas development drilling
  • Predrilling research
  • Mineral drilling, exploration and deposit appraisal
  • Industry Activities
  • Exploration drilling
  • Development drilling
  • Contract drilling for minerals and metals
  • Mine or well support services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from oil drilling and gas extraction
  • World price of crude oil
  • World price of natural gas
  • Demand from mining (except oil and gas)
  • Demand from mineral and phosphate mining
  • World price of steaming coal

  • Current Performance
  • Oil and gas price volatility
  • Volatile growth
  • Landscape and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Pipeline infrastructure development bolsters prices
  • Profit growth attracts new entrants
  • Table: Oil & Gas Field Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction in Canada
  • Coal Mining in Canada
  • Iron Ore Mining in Canada
  • Gold & Silver Ore Mining in Canada
  • Copper, Nickel, Lead & Zinc Mining in Canada
  • Stone Mining in Canada
  • Sand & Gravel Mining in Canada
  • Mineral & Phosphate Mining in Canada

  • Key Selling Industries
  • Chemical Product Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada

  • Products & Services
  • Oil development drilling
  • Gas development drilling
  • Predrilling research
  • Oil and gas exploration drilling
  • Mineral drilling, exploration and deposit appraisal
  • Chart: Oil & Gas Field Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil extractors
  • Natural gas extractors
  • Coal and mineral extractors
  • Chart: Major Market Segmentation for the Oil & Gas Field Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketing and rent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Oil & Gas Field Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil & Gas Field Services Industry

  • Industry Globalization
    Schlumberger,
  • Table: Schlumberger - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil & Gas Field Services 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 Field Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World price of crude oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Completion
  • Process of making a oil or gas well ready for production, including running tubing into the well and cementing the well.
  • Drilling Rig
  • A machine used to drill holes for oil and natural gas wells.
  • Hydraulic Fracturing
  • Also known as fracking. Pressurized water, chemical additives and propping agents is used to fracture rock layers and release petroleum and natural gas for extraction.
  • Potash
  • Mined salts that contain potassium. It is used in a variety of applications, such as in fertilizers and oilwell-drilling fluid.
  • Wildcat Drilling
  • When exploration operators drill in remote geographic regions for petroleum reserves. Wildcat refers to the potential for remote regions to contain wildlife.
  • Workover
  • Oil well intervention technique, including replacing the completion of the well.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil & Gas Field Services 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.

    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 Field Services:
    • 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 Field Services 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 Field Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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