$51.1bn
$X.Xbn
142k
17,202
$XX.Xbn
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.
Industry revenue has declined at a CAGR of 7.8 % over the past five years, to reach an estimated $51.1bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2023 | Revenue ($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 |
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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.
The Oil Field Drilling Services industry primarily provides drilling and extraction services
This industry provides oil field services to companies that explore, drill and produce oil.
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NAICS 21311 - Oil Field Drilling Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The world price of crude oil dropped amid the COVID-19 pandemic. This constrained revenue as selling prices for upstream oil companies dwindled.
Learn about an industry's products and services, markets and trends in international trade.
Drilling and extraction services are the industry’s largest service segments. Production, installation, maintenance and repair services also accounts for a significant portio...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
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 ...
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.
Competitive pricing is key in attracting downstream customers. Oil field drilling service companies must be able to deliver a range of high-quality services.
Learn about the performance of the top companies in the industry.
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...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
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.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
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.
Including values and annual change:
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Key data sources in the US include:
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These sources include:
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The market size of the Oil Field Drilling Services in the US industry in United States is $51.1bn in 2024.
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.
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.
Over the next five years, the Oil Field Drilling Services in the US industry in United States is expected to decline.
The biggest companies operating in the Oil Field Drilling Services market in United States are Halliburton Company, Schlumberger Limited and Baker Hughes Company
Drilling oil and wells and Surveying wells are part of the Oil Field Drilling Services in the US industry.
The company holding the most market share in United States is Halliburton Company.
The level of competition is high and increasing in the Oil Field Drilling Services in the US industry in United States.