First Research US Industry Profile

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Oil & Gas Field Services
SIC Codes: 1382, 1389
NAICS Codes: 213112
Last Quarterly Update: 5/6/2019
Companies in this industry support oil and gas field operations on a contract basis. Major companies include Baker Hughes, China Oilfield Services, Halliburton, Nabors Industries, National Oilwell Varco, Saipem, Schlumberger, Transocean, and Weatherford International.
Worldwide, the oil and gas well drilling and field services industry generates about $250 billion in revenue and is forecast to reach about $325 billion by 2022, according to a Westwood Global Energy forecast issued in 2017. Field service locations are determined by oil and gas production and reserves. Some of the largest oil and gas reserves are in Venezuela, Saudi Arabia, Canada, and Iran. Argentina is expected to see strong growth.
The US oil and gas field services industry includes about 11,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $70 billion. Some companies in the industry provide drilling services, but oil and gas well drilling is covered in a separate industry profile.
Competitive Landscape
Demand is driven by oil and gas prices. The profitability of individual companies depends on technical expertise and efficiency of operations. Large companies can offer a broad range of services. Small firms can compete effectively by specializing in a particular type of service or geographic area.
The oil and gas industry has experienced significant upheaval in recent years, partly due to the US shale oil boom and repercussions from supply flooding the market. Oil prices hit a high mark of more than $100 per barrel in mid-2014 before falling to less than $30 per barrel in early 2016, then stabilizing at around $70 per barrel in mid-2018. Global rig counts also fluctuated during this time, falling 1,930 in 2014 to around 400 in mid-2016 before rising to about 2,200 in mid-2018.
The oil and gas field services companies that survived the ride did so by figuring out how to make a profit with oil selling at a lower price. Some invested in new technology to gain efficiencies, some bought equipment at favorable prices from firms going bankrupt, some reduced their operations. Industry employment dropped by 12% in 2015 and 28% in 2016 before increasing by 11% in 2017. Though rig count and revenue have both rebounded, technology-related efficiency gains will likely keep a lid on employment growth.
Products, Operations & Technology
Major services include preparing wells for production, maintaining and enhancing the output of producing wells, and exploration. Additional services include ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/04/2019
10/29/2018
07/30/2018
04/23/2018
01/22/2018
10/16/2017
07/17/2017
04/17/2017
01/16/2017
10/10/2016
07/11/2016
04/04/2016
12/21/2015
09/21/2015
06/15/2015
03/09/2015
12/08/2014
09/15/2014
06/23/2014
03/10/2014
12/02/2013
09/09/2013
06/17/2013
03/25/2013
12/17/2012
09/24/2012
07/09/2012
04/16/2012
01/09/2012
10/03/2011
06/27/2011
03/21/2011
12/06/2010
09/13/2010
06/07/2010
02/22/2010