Oil Drilling & Gas Extraction in California - Industry Market Research Report

Overflow: Due to a glut in oil and gas, operators are cutting production to improve prices

Oil Drilling & Gas Extraction in California

The Oil Drilling and Gas Extraction industry in California has been challenged by a number of factors in the five years to 2017, and profit margins have taken a substantial hit. Industry operators were challenged by the same issues as their counterparts nationwide, as innovative production techniques like hydraulic fracturing and directional drilling have flooded the market with low-cost oil and gas, in turn slashing their respective prices. More specifically, starting in 2014, the oversupply in crude oil and natural gas slashed commodity prices. As a result, industry revenue has declined in the past five years. However, industry revenue is anticipated to rebound in 2017, as oil and gas prices recover by double digits on the back of recent production cuts implemented by OPEC and non-OPEC producers worldwide. Over the five years to 2022, the oil and natural gas price index is projected to rebound in response to limited production rates.

Companies in this industry operate and develop oil and gas field properties in California. Activities include the exploration and production of crude petroleum; the mining and extraction of oil from oil shale and oil sands; the exploration and production of natural gas; sulfur recovery from natural gas; and recovery of hydrocarbon liquids. Companies may operate oil and gas wells on their own account or for others on a contract or fee basis.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.