Oil & Gas Drilling Support Services in China - Market Research Report (2014-2029)

Revenue for the Oil and Gas Drilling Support Services industry is expected to increase at an annualized 13.6% over the five years through 2023, to $92.8 billion. The world price of crude oil has risen significantly over the past five years. However, major oil companies have increased investment in oil and gas exploration and development, which has led to a significant enhancive in demand for industry services over the period. In 2020, world demand for oil and gas decreased as a result of the COVID-19 outbreak, which led to a decline in revenue in the year. In 2021, international oil prices rose sharply year-on-year, revenue rose sharply by 19.7% from 2020. In 2022, tensions between Russia and Ukraine led to a sharp rise in crude oil prices. Industry revenue is anticipated to grow by 6.8% in 2023. Profit margins have recovered to 2.3% of industry revenue in 2023.A major feature of the industry is the existing 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 2023, these three firms are expected to account for 88.5% of industry revenue. In total, an estimated 154 establishments operate in the industry, employing over 310,598 people with total wage costs of $10.5 billion.Industry revenue is forecast to grow at an annualized 5.0% over the five years through 2028, to $118.5 billion. The world price of natural gas is projected to increase over the next five years, and global demand for energy will likely continue to be substantial. These trends will encourage oil and gas drilling companies to invest in developing new fields, which will lead to greater demand for drilling support services over the period.