In 2013, the oilfield services & equipment industry generated an estimated $131.7 billion in revenues in the United States.1 This represents a 4.4% decline from 2012, but a 9.8% increase since 2008. Industry revenues declined materially in 2009, driven by the decline in energy demand resulting from the lower level of economic activity during the recession. Despite the Deepwater Horizon oil spill in 2010 (for which oilfield service companies Halliburton and Transocean were partially responsible, according to a government report), industry revenues rebounded given higher energy prices and resurgence in domestic energy production.
Industry revenues, as estimated by IBISWorld, are expected to rise over the next several years due to increases in global energy demand and the continued growth of domestic drilling activity
Hydraulic fracturing and horizontal drilling practices, coupled with higher oil prices, have allowed exploration & production companies to profitably operate in areas which were previously not economically viable. Given the technology and expertise required for these activities, oilfield services & equipment companies are well positioned to benefit.
