Oil & Gas Well Drilling

Oil & Gas Well Drilling

Brief Excerpt from Industry Overview Chapter:

Companies in this industry specialize in drilling oil and gas wells for others on a contract or fee basis. Major companies include Diamond Offshore, Helmerich & Payne, Nabors, and Patterson-UTI (all based in the US), as well as Precision Drilling (Canada), Transocean (Switzerland), and Valaris (UK).

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 broader range of services in addition to drilling, and they can contract to serve major clients in multiple locations. Small firms can compete effectively by specializing in a particular type of drilling or geographic area.

PRODUCTS, OPERATIONS & TECHNOLOGY

Drilling a well with a drilling rig involves creating a hole using a drill bit attached to a rotating drill 'string.' The latter is 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. Oil and gas well drilling firms garners its revenues from drilling oil and gas wells, which account for about 80% of the industry revenue. Reworking oil and gas wells, as well as directional drilling account for 10%, each. Other services include rental services and other oil and gas field repair.