Crude method: A recovery in oil prices thanks to the OPEC supply cut supports revenue growth

Oil and gas production in the United Kingdom has declined since its peak in the late 1990s as existing fields have matured and it has become increasingly challenging to develop new commercially viable sources. Operators have been able to endure this instability by forming partnerships to pool their resources and make extraction more efficient. The industry ramped up investment during the early part of the five-year period through 2018-19 in an effort to soften the blow of declining output, and operators are expected to reap the benefits of this early investment with a number of new fields coming on stream in the latter half of the period. However, price fluctuations caused revenue to fall in the first three years of the period...read more.

Industry Statistics & Market Size
Revenue
£25.1bn
Annual Growth 14-19
-7.8%
Forecast Growth 19-24
Profit
Employment
34,127
Businesses
139

Industry Threats & Opportunities

  • The low price of oil caused industry revenue to decline at the start of the past five-year period
  • A significant amount of capital has been poured into North Sea offshore production in recent years
  • Pressure on prices is likely to remain a threat to the industry’s performance over the coming years
  • Industry Report - Industry Investment Chapter

    The Crude Petroleum and Natural Gas Extraction industry has a high level of capital intensity. On average, for every £1.00 spent on capital, industry operators will spend £2.53 on labour. As an isolated process of a more labour-intensive supply chain, extraction involves large amounts of invasive machinery and associated supporting equipment. The Crude Petroleum and Natural Gas Extraction industry relies on this large-scale equipment, including offshore drilling and production platforms, for its output, rather than on labour. Apart from their large scale, the substantial capital cost of production facilities also reflects the importance of reliability. Facilities operate around the clock and must be resistant to corrosion and wear and tear. The...purchase to read more.

    Additional Insights for the Crude Petroleum & Natural Gas Extraction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Crude Petroleum & Natural Gas Extraction Industry are

  • Economies of scale
  • Downstream ownership links
  • Ability to find new resource deposits
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and World price of natural gas in the Crude Petroleum & Natural Gas Extraction industry impact industry performance..

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    What's in this report

    What is the Crude Petroleum & Natural Gas Extraction Industry?

    Firms in this industry extract crude oil and natural gas from onshore and offshore fields. The industry also includes the extraction of oil from oil shale and oil sands, as well as covering all activities relating to developing extraction sites and extracting oil and gas. The industry excludes test drilling, oil and gas services performed on a contract basis, surveying, the manufacture of industrial gases and the operation of pipelines.

    Industry Products
  • Offshore crude oil
  • Onshore crude oil
  • Offshore natural gas
  • Onshore natural gas
  • Industry Activities
  • Extracting crude oil
  • Extracting natural gas
  • Extracting condensates
  • Draining and separating liquid hydrocarbon fractions
  • Desulphurising gas
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • World price of natural gas
  • Natural gas reserves
  • Oil reserves
  • Demand from electricity production
  • Demand from petroleum refining
  • Exchange rate - US dollar per pound

  • Current Performance
  • Volatile prices
  • Profit performance
  • Drilling down
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Pricing pressures
  • Offshore investment
  • Trading troubles
  • Table: Crude Petroleum & Natural Gas Extraction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Crude Petroleum & Natural Gas Extraction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining
  • Organic Basic Chemical Manufacturing
  • Electricity Production
  • Gas Distribution

  • Key Selling Industries
  • Consultant Engineering Services
  • Pipeline Transport
  • Sea & Coastal Freight Water Transport
  • Steel Tube, Pipe & Related Fitting Manufacturing

  • Products & Services
  • Offshore crude oil
  • Offshore natural gas
  • Onshore crude oil
  • Onshore natural gas
  • Chart: Crude Petroleum & Natural Gas Extraction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Domestic petroleum refining
  • Electricity generators
  • Households
  • Other industrial and commercial users
  • Chart: Major Market Segmentation for the Crude Petroleum & Natural Gas Extraction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesProduction taxes and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Crude Petroleum & Natural Gas Extraction

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Crude Petroleum & Natural Gas Extraction Industry

  • Industry Globalization
    BP plc, ConocoPhillips UK Limited, Nexen Petroleum UK Limited,
  • Table: BP plc - financial performance
  • Table: ConocoPhillips UK Limited - financial performance
  • Table: Nexen Petroleum UK Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Crude Petroleum & Natural Gas Extraction 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 Crude Petroleum & Natural Gas Extraction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrels Of Oil Equivalent
  • A unit of energy related to the energy released by one barrel of crude oil. It is used as a way of combining oil and gas reserves into one measure.
  • Fracking
  • The industry term for hydraulic fracturing. The process involves using water mixed with sand and chemicals to create and widen fissures in shale rock to release natural gas.
  • Oil Sands
  • A mixture of sand, water, clay and bitumen.
  • Oilfield
  • An underground or undersea deposit of oil contained in a stable geological formation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Crude Petroleum & Natural Gas Extraction 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.

    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 Crude Petroleum & Natural Gas Extraction:
    • 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 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 Crude Petroleum & Natural Gas Extraction 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 Crude Petroleum & Natural Gas Extraction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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