Industry Analysis & Industry Trends
Unprecedented investment in gas extraction and liquefied natural gas (LNG) production facilities across northern Australia has supported record activity in the Oil and Gas Field Services industry over the past five years. Strong global demand for energy sources and technological advancements in natural gas extraction, liquefaction and long-distance transport have driven this investment.
Multi-billion dollar LNG developments under construction are currently nearing completion and will soon become operational in Queensland, northern Western Australia, and the Northern Territory. The industry is currently working on projects with a delivery value exceeding $175 billion, due for completion between 2015 and 2017... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate level of capital intensity compared with the general economy. Wage costs are estimated to account for 14.1% of industry revenue in 2015-16 and depreciation charges represent 2.2% of revenue. This indicates that the industry allocates $6.41 for labour costs for every $1.00 spent on capital inputs. However, the industry's capital intensity is much lower when payments to subcontractors are included.
Capital intensity is gradually increasing over time, as the burgeoning demand for industry services has encouraged companies to invest into machinery and spread the cost and risk over several projects, rather than rely on leased equipment... purchase to read more