Oil and Gas Field Services Industry Profile

The US oil and gas field services and equipment industry includes 8,000 companies with combined annual revenue of about $85 billion. Major companies include Halliburton, Baker Hughes, and the US operations of Schlumberger.

COMPETITIVE LANDSCAPE

Demand is driven by oil and gas prices. The profitability of individual companies depends on technical expertise and efficiency of operations. Large companies can offer a broad range of services. Small firms can compete effectively by specializing in a particular type of service or geographic area.

PRODUCTS, OPERATIONS & TECHNOLOGY

Oil and gas field service companies provide drilling (about 30 percent of sales) and support services (about 50 percent) for oil and gas wells and make drilling equipment. Major support services include preparing wells for production, maintaining and enhancing the output of producing wells, and exploration.

Drilling a well with a drilling rig involves creating a hole using a drill bit attached to a rotating drill "string" made up of 30-foot sections of pipe. Heavy fluids ("drilling mud") are pumped down the hole during drilling to carry cuttings to the surface. Periodically, the drill pipe is pulled out and a larger diameter pipe, known as "casing," is cemented in place to protect the hole against collapse.

After drilling is finished, a well is prepared for production in a process known as "well completion." The casing is perforated at the production depth and a smaller diameter pipe (“tubing”) is inserted to allow oil and gas ...