In a hole: Industry revenue collapses as mining investment plummets

The Oil and Mineral Exploration Drilling industry's performance has been extremely volatile over the past five years. Industry players provide services to mining companies that are engaged in greenfield oil and mineral exploration. This segment represents the riskiest area of the Mining division as companies look for new economically viable resource deposits. Expenditure on greenfield exploration fluctuates significantly year on year, in line with small miners' ability to access capital. Demand tends to fall for greenfield exploration services, such as specialist drilling activities, when commodity prices fall or sentiment in the Mining division declines.Industry operators previously benefited from a prolonged boom in capital expenditure in the Mining more.

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

Industry Threats & Opportunities

  • Industry revenue has collapsed due to falls in mining-related capital expenditure
  • Weaker demand has forced many players to lower prices or exit the industry
  • Internal competition is projected to intensify as players attempt to improve efficiencies
  • Industry Report - Industry Locations Chapter

    The dispersion of establishments in the Oil and Mineral Exploration Drilling industry is primarily determined by the location of mineral ore deposits. Unlike other industries, some establishments are found in highly remote areas. This enables a much higher allocation of industry activity in some states relative to their share of the Australian population. For example, 6.9% of industry establishments are found in the Northern Territory, relative to only 1.0% of the population.Western Australia is the dominant region for industry activity. Major commodities in Western Australia include iron ore, gold, bauxite, alumina and diamond. Many mining companies have explored potential commodity deposits to determine the extent of the resources. Thi...purchase to read more.

    Additional Insights for the Oil and Mineral Exploration Drilling Industry

    IBISWorld has determined the most important Key Success Factors for the Oil and Mineral Exploration Drilling are:

  • Ability to effectively manage risk
  • Economies of scale
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Base metals price index in the Oil and Mineral Exploration Drilling industry impact industry performance..

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    What's in this report

    What is the Oil and Mineral Exploration Drilling Industry?

    Industry companies provide exploratory drilling services for oil, gas and mineral exploration and mining firms. Mining companies contract exploration drilling companies to carry out exploratory drilling services for greenfield mining. Many industry firms also supply drilling services for brownfield projects, but these activities are excluded from the industry.

    Industry Products
  • Reverse-circulation drilling
  • Air-core drilling
  • Diamond drilling
  • Hydraulic-rotary drilling
  • Other exploration drilling
  • Rotary air-blast drilling
  • Industry Activities
  • Reverse-circulation drilling
  • Air-core drilling
  • Diamond drilling
  • Rotary air-blast drilling
  • Hydraulic-rotary drilling
  • Coil-tube drilling
  • Other exploratory drilling 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
  • Base metals price index
  • Demand from exploration
  • US dollars per Australian dollar
  • World price of crude oil

  • Current Performance
  • Demand and revenue
  • Mine development
  • Greenfields in decline
  • Industry dynamics
  • Chart: Revenue Growth

  • Industry Outlook
  • Internal dynamics
  • Prices, exploration and regulation
  • Table: Oil and Mineral Exploration Drilling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil and Mineral Exploration Drilling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil and Gas Extraction
  • Iron Ore Mining
  • Bauxite Mining
  • Copper Ore Mining
  • Gold Ore Mining
  • Mineral Exploration

  • Key Selling Industries
  • Engineering Consulting
  • Mining and Industrial Machinery Wholesaling

  • Products & Services
  • Diamond drilling
  • Rotary air-blast drilling
  • Reverse-circulation drilling
  • Hydraulic-rotary drilling
  • Air-core drilling
  • Other exploration drilling
  • Chart: Oil and Mineral Exploration Drilling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Offshore oil and gas exploration companies
  • Metal ore mining companies
  • Onshore oil and gas exploration companies
  • Chart: Major Market Segmentation for the Oil and Mineral Exploration Drilling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Oil and Mineral Exploration Drilling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil and Mineral Exploration Drilling Industry

  • Industry Globalization
    Boart Longyear Limited, Ausdrill Limited,
  • Table: Boart Longyear Limited - financial performance
  • Table: Ausdrill Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil and Mineral Exploration Drilling 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 Mineral Exploration Drilling 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
  • Established mining projects that produce output.
  • Drill Bit
  • An attachment tool for the drill that is used to excavate the rock in oil, gas and mineral drilling applications.
  • Greenfield
  • Newly established mining projects that require exploratory drilling services.
  • Measurement-While-Drilling
  • A drilling tool technology that transmits information from down-hole measuring devices to the surface while drilling is occurring.
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    Why buy this report?

    IBISWorld’s Oil and Mineral Exploration Drilling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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    This report on Oil and Mineral Exploration Drilling:
    • 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 Mineral Exploration Drilling 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 Mineral Exploration Drilling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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