Oil Field Drilling Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD4722Revenue
$51.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
142k
Businesses
17,202
Wages
$XX.Xbn
Oil Field Drilling Services in the US industry analysis
The industry provides support services on a fee or contract basis to companies involved in oil extraction, mining and quarrying. Since the extraction of hydrocarbons dwarves that of any other mineral or energy source in the United States, most oil field drilling service companies are concerned with providing support services strictly to oil companies. Due to this relationship, the industry is exposed to numerous endogenous and exogenous factors that factor into the success of the Oil Drilling and Gas Extraction industry (IBISWorld report 21111). For example, rising hydrocarbon prices often yield an increase in demand for oil field drilling services as previously unprofitable sites become attractive to producers. Still, as prices dip, demand for oil field drilling services may recede as producers become more cautious regarding extracting resources in a low-priced environment and limit drilling to only the most profitable fields. Industry revenue has plummeted at a CAGR of 7.8% over the past five years and is expected to total $51.1 billion in 2023, when revenue will fall by an estimated 10.2%.In the first half of the current period, the world price of crude oil climbed after global markets had previously been inundated with cheap hydrocarbons due to the rapid adoption of horizontal drilling and hydraulic fracturing techniques in the United States. Revenue benefited as demand for oil field services increased alongside the adoption of new drilling methods and more favorable hydrocarbon prices. Still, the industry's gains sharply reversed amid the COVID-19 pandemic due to stringent socioeconomic restrictions, which were issued to curb the spread of the virus. Ultimately, this led to a collapse in oil demand. Lower crude oil prices and constricted global supply lines have led to lower drilling activity for oil field drilling service companies. Industry profit will decrease due to volatile demand and rising purchase costs.Swift economic recovery induced rising inflation that will lead to a recession in the five years to 2028. Due to this, demand for oil field services will continue declining. Crude oil prices are to fall, reducing investing in the industry. Oil Field Drilling Services industry revenue is expected to contract at a CAGR of 1.2% to $48.1 billion over the five years to 2028.
Trends and Insights
- The world price of crude oil dropped amid the COVID-19 pandemic. This constrained revenue as selling prices for upstream oil companies dwindled.
- Drilling and extraction services are the industry’s largest service segments. Production, installation, maintenance and repair services also accounts for a significant portion of demand.
- Oil field drilling service companies choose to locate themselves near suppliers, making the Southeast the most popular choice to set up establishments. Companies are able to quickly and conveniently acquire material while saving on transportation costs.
- Competitive pricing is key in attracting downstream customers. Oil field drilling service companies must be able to deliver a range of high-quality services.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 7.8 % over the past five years, to reach an estimated $51.1bn in 2023.
Trends and Insights
The industry plays a vital role in the production of oil
- Companies in the industry provide valuable services to upstream oil companies and sell products that oil field oil field drilling service companies use to explore and develop oil deposits. Similar to upstream oil companies, oil field drilling service companies are highly exposed to fluctuations in crude oil prices, which can be affected by various factors.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
The industry will decline over the five years to 2028
- Strong economic conditions following the height of the COVID-19 led to heightened and sustained inflation. This will lead to a recessionary period, reducing demand from downstream markets.
Biggest companies in the Oil Field Drilling Services in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Halliburton Company | 4,560.9 | 565.1 | 12.4 | |
Schlumberger Limited | 2,670.2 | 344.1 | 12.9 | |
Baker Hughes Company | 1,412.0 | 137.6 | 9.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Exploration and gathering services, Drilling and extraction services and Production, installation, maintenance and repair services. Exploration and gathering services is the largest segment of the Oil Field Drilling Services in the US.
Trends and Insights
The Oil Field Drilling Services industry primarily provides drilling and extraction services
- Services include drilling oil wells, directional drilling control, hydraulic fracturing, extraction of hydrocarbons and crude petroleum and reworking oil wells.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Oil Drilling & Gas Extraction in the US
- Heavy Engineering Construction in the US
- Mining, Oil & Gas Machinery Manufacturing in the US
- Oil & Gas Pipeline Construction in the US
International industries
- Global Oil & Gas Exploration & Production
- Oil Drilling & Gas Extraction in Canada
- Oil and Gas Extraction in Australia
Table of Contents
About this industry
Industry definition
This industry provides oil field services to companies that explore, drill and produce oil.
What's included in this industry?
Drilling oil and wellsSurveying wellsRunning, cutting and pulling casings, tubes and rodsCementing wellsPerforating well casingsAcidizing and chemically treating wellsCompanies
Halliburton CompanySchlumberger LimitedBaker Hughes CompanyPurchase this report to view all 4 major companies in this industry.
Related Terms
SEMISUBMERSIBLE RIGHYDRAULIC FRACTURING (FRACKING)JACK-UP RIGDRILLSHIPWELL LOGGINGDRILLING RIGDAY RATEDAYWORK CONTRACTWORKOVERIndustry Code
NAICS 21311 - Oil Field Drilling Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The world price of crude oil dropped amid the COVID-19 pandemic. This constrained revenue as selling prices for upstream oil companies dwindled.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Drilling and extraction services are the industry’s largest service segments. Production, installation, maintenance and repair services also accounts for a significant portio...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Oil field drilling service companies choose to locate themselves near suppliers, making the Southeast the most popular choice to set up establishments. Companies are able to ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competitive pricing is key in attracting downstream customers. Oil field drilling service companies must be able to deliver a range of high-quality services.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no companies that dominate the industry at large. The Oil Field Drilling Service industry is localized and each company services a particular segment or part of the...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Halliburton Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Schlumberger Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Baker Hughes Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Halliburton Company, and factors influencing its performance in the industry
- Description and key data for Schlumberger Limited, and factors influencing its performance in the industry
- Description and key data for Baker Hughes Company, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Oil field drilling service companies are under heavy environment and noise regulation. These include the Clear Water Act, Clean Air Act and other government mandated laws.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases are a large cost for oil field drilling service companies. Raw material prices are a prominent expense and have been volatile in recent years.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Oil Field Drilling Services in the US industry in United States in 2024?
The market size of the Oil Field Drilling Services in the US industry in United States is $51.1bn in 2024.
How many businesses are there in the Oil Field Drilling Services in the US industry in 2023?
There are 17,202 businesses in the Oil Field Drilling Services in the US industry in United States, which has declined at a CAGR of 3.5 % between 2018 and 2023.
Has the Oil Field Drilling Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Oil Field Drilling Services in the US industry in United States has been declining at a CAGR of 7.8 % between 2018 and 2023.
What is the forecast growth of the Oil Field Drilling Services in the US industry in United States over the next 5 years?
Over the next five years, the Oil Field Drilling Services in the US industry in United States is expected to decline.
What are the biggest companies in the Oil Field Drilling Services in the US market in United States?
The biggest companies operating in the Oil Field Drilling Services market in United States are Halliburton Company, Schlumberger Limited and Baker Hughes Company
What does the Oil Field Drilling Services in the US in United States include?
Drilling oil and wells and Surveying wells are part of the Oil Field Drilling Services in the US industry.
Which companies have the highest market share in the Oil Field Drilling Services in the US in United States?
The company holding the most market share in United States is Halliburton Company.
How competitive is the Oil Field Drilling Services in the US industry in United States?
The level of competition is high and increasing in the Oil Field Drilling Services in the US industry in United States.
