The article helps reader in knowing the description about the oil and gas field services industry.
Oil and gas field services industry
Oil and gas field servicesindustry is one of the booming industries for almost last five decades. This is one of the types of service industries that provide services to oil and gas field companies for extraction, drilling, refining, transportation and etc.
The oil and gas field services industry serves as per the size of the firms in oil and gas fields. The oil and gas field firms are either large integrated firms or small or medium size firms.
The large integrated firms require large number of oil and gas field services. Whereas, most of the medium and small size firms are only making profits in specialized functions related to oil and gas field segments. Therefore, they require some special form of services related to oil and gas field sector.
Consumers for Oil and gas field services:
The consumers are divided in two categories
The primary consumers include oil and gas exploration and production companies. They require exploring and drilling equipments and services related to them.
Secondary consumers include the firms that are converting the oil and gas in other forms of energies. They include the refineries and other oil processing power plants.
The Market size of oil and gas field services industry
As stated earlier, the market is enormous. The demand for the services varies directly with the capital investment related to the exploration of oil and gas.
The other factor that influences the demand for the service providers is the price for oil and gas. The fluctuations results in changing the market size. For instance, if the price of the petroleum products increases, the companies will look for drilling service providers to meet the maximum demand.
The market size for the gas and oil field services industry shrinks for the regions from where the oil and gas field is mature.
As stated earlier, the oil and gas field services are related to the refineries as well. They need services as well. There services industry provide services related to transportation, engineering and packaging..
Consequently, depending on several supply and demand factors, the market size for the oil and gas field services is immense. There exists great rivalry among competitors within the industry.
Due to increased rivalry, the bargaining power of customers (Oil and gas field services buyers) is high. What the gas and oil field agencies do is hire the service providers on the contract basis. Most of the time, the governments make contract with the renowned service providers for the exploration and extraction of oil and gas from the fields.
The firms are different EPCs which provide their expertise from exploration and extracting the oil and gas from the fields to converting the raw material into well processed finished good.
The oil and gas field services industry provides expertise of different forms to produce the high end hydrocarbon products for different uses. This service industry requires transparency, large number of labor and high end technology advancements for carrying out efficient procedures.