Pump the gas: Increasing oil prices are expected to drive growth over the next five-year period

For a number of years, declining reserves and falling production from the UK’s oil and gas fields have led to less oil and gas drilling, reducing demand for the industry’s services. UK sources of oil and natural gas are becoming scarcer, causing a drop in the exploration activity that the industry depends on. Falling oil prices over the three years through 2016 have exacerbated the downturn in exploratory drilling. Overall, the maturity of North Sea oil reserves is a problem that is likely to damage the industry indefinitely, but there are still opportunities for growth.Rigs operating on the UK Continental Shelf (UKCS) are involved in drilling exploration, appraisal and digging development wells. Although wells are drilled onshore, the main focus of drilling activity is offshore...read more.

Industry Statistics & Market Size
Revenue
£7.5bn
Annual Growth 14-19
-1.8%
Forecast Growth 19-24
Profit
Employment
23,830
Businesses
230

Industry Threats & Opportunities

  • Sources of oil and gas are becoming scarcer, limiting activity that the industry depends on
  • Upstream activity is expected to increase following the commencement of the MER UK legislation
  • Firms have been prompted to transition their operations towards decommissioning activity
  • Industry Report - Industry Products Chapter

    Development wellsDevelopment wells are drilled to produce oil or gas once an area has been evaluated for size and flow rate. These wells tend to be larger than appraisal and exploration wells. This is the most lucrative activity for the industry and is estimated to account for 67% of industry revenue in the current year. Development wells have fallen as a share of revenue over the past five years as volumes extracted from the North Sea have declined. Inactivity in the region as fuel prices plummeted early in the period affected revenue from this service. Appraisal wellsOnce an oil or gas field has been found, a number of appraisal wells are drilled around the original exploration well. The...purchase to read more.

    Additional Insights for the Petroleum & Natural Gas Support Activities Industry

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

  • Ability to accommodate environmental requirements
  • Having a high prior success rate (including completed prior contracts)
  • Use of most efficient work practices
  • IBISWorld analysts also discuss how external factors such as Demand from crude petroleum and natural gas extraction and World price of crude oil in the Petroleum & Natural Gas Support Activities industry impact industry performance..

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    What's in this report

    What is the Petroleum & Natural Gas Support Activities Industry?

    This industry provides oil and gas well services on a fee or contract basis to firms that extract oil and gas. This includes traditional prospecting methods such as geological observations, and invasive work such as directional drilling, redrilling, test drilling, spudding, and derrick erection and maintenance. It also incorporates draining and pumping services, and the liquefaction and regasification of gas for transportation.

    Industry Products
  • Development wells
  • Appraisal wells
  • Exploration wells
  • Other services
  • Industry Activities
  • Drilling oil and gas wells
  • Cementing wells
  • Plugging abandoned wells
  • Well draining and pumping
  • Erecting drilling derricks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from crude petroleum and natural gas extraction
  • World price of crude oil
  • Coal production
  • World price of natural gas
  • Public concern over environmental issues

  • Current Performance
  • A strong start
  • Industry assistance
  • Chart: Revenue Growth

  • Industry Outlook
  • Commissioning growth
  • Exploiting demand
  • Fracking future
  • Enterprises and employment
  • Table: Petroleum & Natural Gas Support Activities Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Crude Petroleum & Natural Gas Extraction

  • Key Selling Industries
  • Consultant Engineering Services
  • Machinery Repair & Maintenance
  • Mining, Quarrying & Construction Machinery Manufacturing

  • Products & Services
  • Development wells
  • Appraisal wells
  • Exploration wells
  • Other services
  • Chart: Petroleum & Natural Gas Support Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil extraction
  • Gas extraction
  • Chart: Major Market Segmentation for the Petroleum & Natural Gas Support Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum & Natural Gas Support Activities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum & Natural Gas Support Activities Industry

  • Industry Globalization
    Technip UK Ltd, Halliburton Manufacturing and Services Limited, Transocean Drilling UK Limited,
  • Table: Technip UK Ltd - financial performance
  • Table: Halliburton Manufacturing and Services Limited - financial performance
  • Table: Transocean Drilling UK Limited - financial performance

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

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cementing
  • Plugging an existing well with cement so that it can be safely abandoned.
  • Derrick
  • A lifting device consisting of a tower and a guyed mast.
  • Liquefaction
  • The process of converting natural gas into liquid for transportation and other purposes.
  • Regasification
  • Performed after liquefaction to return natural gas to its gaseous state.
  • Spudding
  • To start drilling operations on an oil or gas well.
  • What Our Customers Say

    Why buy this report?

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

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