Out of gas: The completion of major projects is forecast to negatively affect industry revenue

The Oil and Gas Field Services industry is expected to grow at an annualised 4.6% over the five years through 2017-18, to $8.0 billion. Unprecedented investment in gas extraction and LNG production facilities across northern Australia have shaped the industry's landscape over the period. Three large LNG facilities on Curtis Island, QLD, have been under construction over the past five years. These facilities are designed to service lucrative export markets in China and Japan. The construction of the Gorgon, Wheatstone and Prelude LNG plants in Western Australia, and the Ichthys LNG plant in the Northern Territory, have also driven industry revenue growth over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Unprecedented investment has occurred in gas extraction and LNG production facilities
  • The completion and winding down of major projects has reduced revenue for major players
  • Increased regulation of unconventional extraction techniques will likely restrict demand
  • Industry Report - Industry Investment Chapter

    The industry has a moderate level of capital intensity. For every dollar spent on wages, an estimated $0.29 is invested in capital. Capital intensity has increased over the past five years, as falling labour costs have outpaced falling depreciation expenses. Both labour and capital expenses have fallen as major oil and gas extraction projects have transitioned from construction to operation. However, labour costs have fallen at a greater rate due to an ongoing replacement of permanent staff with external subcontractors. The industry's subcontracted workforce comprises tradespeople, agency staff and professional and technical consultants. Subcontractor payments are typically to enterprises operating in other industries, such as providers of electrical, surveying or engineering services. Pay...purchase to read more.

    Additional Insights for the Oil and Gas Field Services Industry

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

  • Ability to compete on tender
  • Effective cost controls
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Demand from oil and gas extraction in the Oil and Gas Field Services industry impact industry performance..

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    What's in this report

    What is the Oil and Gas Field Services Industry?

    Industry firms provide planning, construction and maintenance services on a fee or contract basis to companies involved in oil and gas extraction.

    Industry Products
  • Construction services
  • Site preparation services
  • Plant management services
  • Other services
  • Industry Activities
  • Providing site preparation services
  • Providing construction services
  • Providing plant management services
  • Providing other 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
  • Actual capital expenditure on mining
  • Demand from oil and gas extraction
  • Demand from petroleum exploration
  • World price of crude oil
  • World price of natural gas

  • Current Performance
  • Major projects
  • Developments in extraction
  • Internal structure and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Upstream conditions
  • Profitability and participation
  • Regulatory environment
  • Table: Oil and Gas Field Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil and Gas Extraction
  • Industrial Gas Manufacturing
  • Gas Supply
  • Pipeline Transport

  • Key Selling Industries
  • Construction Machinery and Operator Hire
  • Gravel and Sand Quarrying
  • Hardware Wholesaling
  • Machinery and Scaffolding Rental
  • Mining and Industrial Machinery Wholesaling
  • Site Preparation Services

  • Products & Services
  • Plant management services
  • Construction services
  • Other services
  • Site preparation services
  • Chart: Oil and Gas Field Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Onshore extraction and gas supply firms
  • Offshore extraction firms
  • Chart: Major Market Segmentation for the Oil and Gas Field Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Subcontractor and professional expenses
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Oil and Gas Field Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil and Gas Field Services Industry

  • Industry Globalization
    CIMIC Group Limited, Bechtel Australia Proprietary Limited, KBR Holdings Pty Ltd, WorleyParsons Limited,
  • Table: CIMIC Group Limited - financial performance
  • Table: Bechtel Australia Proprietary Limited - financial performance
  • Table: KBR Holdings Pty Ltd - financial performance
  • Table: WorleyParsons Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil and 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 and Gas Field Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Coal Seam Gas (Csg)
  • A naturally occurring gas (typically methane) found in coal seams hundreds of metres below the surface and typically extracted using drilling and hydraulic fracturing.
  • Hydrocarbon
  • A type of organic chemical compound that naturally occurs in crude oil. Hydrocarbons can form methane and propane, among others.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been compressed into liquid form for transportation.
  • Lng Trains
  • Sites where LNG is compressed for cost-effective transportation in ships.
  • What Our Customers Say

    Why buy this report?

    The Oil and Gas Field Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 and 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 and 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 and 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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