Oil and Gas Drilling Support Services in China Industry Research Report Now Available from IBISWorld
San Francisco, CA (PRWEB) February 20, 2013
In 2012, the Oil and Gas Drilling Support Services industry in China was estimated to generate $34.9 billion, says IBISWorld. Over the past five years, revenue has been growing at an annualized rate of 10.6% per year. The industry's rapid development is due to China's significant investment in the exploration and development of oil and gas fields, the specialization and integration of drilling support service companies and improvements in technology. The exploration and development of oil and gas fields is driven by growing domestic demand and rising global prices for crude oil and natural gas.
A major feature of the Oil and Gas Drilling Support Services industry is the oligopoly among the three state-owned oil companies, China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec) and China National Offshore Oil Corporation (CNOOC). In 2012, their combined market share was over 90.0% industry revenue. The three companies control most of the oil and gas fields in China, both on land and offshore. Due to the industry's high entry barriers, IBISWorld does not expect that private or foreign-funded enterprises will gain much market share in the short term.
Global crude oil and natural gas prices are expected to remain high through 2017, as global demand for energy will continue to be substantial, says IBISWorld. This will give incentives to oil and gas drilling companies to invest in developing new fields, which will lead to increasing demand for drilling support services.