Oil & Gas Field Services in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 21311CARevenue
$46.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
74,419
Businesses
11,153
Wages
$X.Xbn
Oil & Gas Field Services in Canada industry analysis
Oil and gas field service operators in Canada have experienced volatile market conditions throughout 2023. World commodity prices performed well throughout the reporting period. However, a fall in natural gas and crude oil prices adversely affected revenue in 2020 and 2023. This decrease in revenue can be mainly attributed to the COVID-19 pandemic and other geopolitical tensions that caused the collapse in oil and gas demand and prices. As economic conditions improved from the peak of the pandemic, demand for oil and gas returned to pre-pandemic levels and even reached new highs. As a result, IBISWorld forecasts revenue has been increasing at a CAGR of 4.9% over the past five years, reaching an estimated $46.4 billion in 2023. This includes a 17.6% decline in 2023 alone, when profit is projected to reach 10.7%. The decline in 2023 can be mainly attributed to uncertain geopolitical tensions from Russia's invasion of Ukraine, which caused global sanctions on Russian oil.
Trends and Insights
- Natural gas is a relatively affordable and efficient source of energy that will make it in high demand by power producers for years to come.
- Demand for gas well drilling and support services has experienced the most upside. Supply and demand of natural gas has grown at an extremely fast rate in recent decades.
- Alberta has a majority share of all establishments. Since Alberta is one of Canada's most resource-rich provinces, most establishments are located in northern Alberta.
- Contracts secured by oil and gas field service providers are largely awarded on a competitive bid basis. Price competition is often the primary factor in determining contract awards, although the quality of service, operational and safety performance are also factors.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 4.9 % over the past five years, to reach an estimated $46.4bn in 2023.
Trends and Insights
COVID-19 pandemic hampers energy demand
- Demand for oil and gas field services is highly dependent on supply and demand of fossil fuels. When prices rise as demand increases, upstream energy producers hire more support service companies to help extract the more valuable resource. Comparatively, when oil and gas prices decline, upstream energy producers will cut back and reduce the supply of fossil fuels and demand fewer industry services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Oil and gas prices are poised to fall
- Demand for oil and gas field services hinges on the prices of hydrocarbons. Exploration and production companies ramp up extraction when prices are high, but often contract production when they shrink.
Biggest companies in the Oil & Gas Field Services in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Schlumberger | 2,277.8 | 448.4 | 19.7 | |
Baker Hughes Company | 900.2 | 81.8 | 9.1 | |
Weatherford International PLC | 330.6 | 52.8 | 16.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Oil and gas exploration drilling, Oil development drilling and Gas development drilling. Oil and gas exploration drilling is the largest segment of the Oil & Gas Field Services in Canada.
Trends and Insights
Demand for gas drilling services grows second fastest
- Gas drilling services include all the same activities within the oil drilling services segment, including drilling and maintaining wells, but are predominantly provided to gas companies.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Coal Mining in Canada
Complementors
- Oil Drilling & Gas Extraction in Canada
- Iron Ore Mining in Canada
- Stone Mining in Canada
International industries
- Global Oil & Gas Exploration & Production
- Oil & Gas Field Services in the US
- Petroleum Exploration in Australia
- Mineral Exploration in Australia
- Mining Support Services in Australia
Table of Contents
About this industry
Industry definition
Operators in the Oil and Gas Field Services industry in Canada provide support services to oil and gas extraction companies and mining and quarrying companies. These services include drilling, reserve estimates, pressure pumping, cementing and well maintenance.
What's included in this industry?
Exploration drillingDevelopment drillingContract drilling for minerals and metalsMine or well support servicesCompanies
SchlumbergerBaker Hughes CompanyWeatherford International PLCPurchase this report to view all 3 major companies in this industry.
Related Terms
DRILLING RIGHYDRAULIC FRACTURINGWILDCAT DRILLINGPOTASHWORKOVERCOMPLETIONIndustry Code
NAICS 213111 - Oil & Gas Field Services in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Natural gas is a relatively affordable and efficient source of energy that will make it in high demand by power producers for years to come.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand for gas well drilling and support services has experienced the most upside. Supply and demand of natural gas has grown at an extremely fast rate in recent decades.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Alberta has a majority share of all establishments. Since Alberta is one of Canada's most resource-rich provinces, most establishments are located in northern Alberta.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Contracts secured by oil and gas field service providers are largely awarded on a competitive bid basis. Price competition is often the primary factor in determining contract...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Companies are investing in improving the current infrastructure. Since oil and gas field services are costly to maintain and operate, companies are focused on improving their...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Schlumberger's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Baker Hughes Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Weatherford International PLC's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Schlumberger, and factors influencing its performance in the industry
- Description and key data for Baker Hughes Company, and factors influencing its performance in the industry
- Description and key data for Weatherford International PLC, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Oil and gas field service providers experience a very high level of regulation and very little industry assistance. The level of regulation will continue to rise over the for...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages represent one of the industry’s largest expenses. The Mining sector is experiencing a lack of new labourers entering the workforce.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Oil & Gas Field Services industry in Canada in 2024?
The market size of the Oil & Gas Field Services industry in Canada is $46.4bn in 2024.
How many businesses are there in the Oil & Gas Field Services in Canada industry in 2023?
There are 11,153 businesses in the Oil & Gas Field Services industry in Canada, which has declined at a CAGR of 4.7 % between 2018 and 2023.
Has the Oil & Gas Field Services industry in Canada grown or declined over the past 5 years?
The market size of the Oil & Gas Field Services industry in Canada has been growing at a CAGR of 4.9 % between 2018 and 2023.
What is the forecast growth of the Oil & Gas Field Services industry in Canada over the next 5 years?
Over the next five years, the Oil & Gas Field Services industry in Canada is expected to decline.
What are the biggest companies in the Oil & Gas Field Services market in Canada?
The biggest companies operating in the Oil & Gas Field Services market in Canada are Schlumberger, Baker Hughes Company and Weatherford International PLC
What does the Oil & Gas Field Services in Canada include?
Exploration drilling and Development drilling are part of the Oil & Gas Field Services industry.
Which companies have the highest market share in the Oil & Gas Field Services in Canada?
The company holding the most market share in Canada is Schlumberger.
How competitive is the Oil & Gas Field Services industry in Canada?
The level of competition is high and steady in the Oil & Gas Field Services industry in Canada.
