Out of gas: Depressed oil and natural gas prices will dampen industry demand

Operators in the Oil and Gas Field Services industry in Canada have experienced volatile market conditions over the five years to 2019. World commodity prices performed well in the years leading up to the reporting period. However, a protracted fall in natural gas and crude oil prices adversely affected revenue between late 2014 and 2016. Demand for industry services is closely linked to commodity prices. The sharp decline in oil and gas prices cut into activity levels and revenue for downstream extraction industries, cutting into demand for industry services and industry profit margins. Over the next five years, IBISWorld projects industry revenue will grow...read more.

Industry Statistics & Market Size
Revenue
$30bn
Annual Growth 14-19
-10.0%
Forecast Growth 19-24
Profit
Employment
77,027
Businesses
14,656
Market Share of Companies

Industry Threats & Opportunities

  • The sharp decline in oil and gas prices cut into activity levels and revenue for downstream extraction industries
  • Revenue has been highly volatile over the past five years
  • Oil and gas drilling activity will remain constrained
  • Industry Report - Industry Key Buyers Chapter

    The Oil and Gas Field Services industry in Canada has a low level of market share concentration, with the top four operators estimated to account for less than 15.0% of industry revenue. The industry features a wide array of participants, with the largest operators being international oilfield services companies such as Baker Hughes, a GE Company, and Schlumberger Limited. However, the vast majority of industry operators are small, with an estimated 80.0% of total establishments having fewer than 10 employees total. This is partly due to the nature of some of the services this industry provides, for example, independent engineers and specialists can provide project management and other noncapital-intensive support services, enabling small operators to participate in this industry. The...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)
  • World price of steaming coal

  • Current Performance
  • Oil and gas price volatility
  • Effect of prices on industry demand
  • Landscape and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Prices, activity levels and domestic infrastructure
  • 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
  • Mineral drilling, exploration and deposit appraisal
  • Gas development drilling
  • Oil and gas exploration drilling
  • Predrilling research
  • 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
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Marketing and rent and utilities
  • Other
  • 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 Limited,
  • Table: Schlumberger Limited - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • World price of crude oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Completion
  • Process of making an 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 oil well 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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