Industry Analysis & Industry Trends
The Oil and Gas Field Services industry has grown strongly in the past five years and is expected to continue to do so in the next five. The rapid increase in industry revenue is being underpinned by high demand from the Oil and Gas Extraction industry, where an unprecedented number of oil and gas projects are underway. In the five years through 2013-14, industry revenue is forecast to grow at a compound annual rate of 23.4%. In 2013-14, forecast growth of 18.9% will take industry revenue to $5.8 billion.
Demand for industry services is contingent on activity in the upstream Petroleum Exploration industry and the Oil and Gas Extraction industry. Exploration is important, because it identifies resources that are necessary for future sector growth... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry for the Oil and Gas Field Services industry are considered to be at a moderate level. The significant presence of the top three major players, which have established contracts and relationships with major oil and gas companies, increases the difficulty of entry. Entrants will not be able to compete with the scope of services these major companies provide and must specialise in other value added services such as consulting and project management.
Capital expenses can be a significant cost for companies wishing to invest in machinery. Much of the industry's services involves the use of heavy machinery and equipment for installation and construction operations. Adding to this, technological advancements require companies to maintain the latest equipment... purchase to read more