Drilling Oil & Gas Wells

Drilling Oil & Gas Wells

Overview

The 1,800 drilling contractors in the US provide drilling services under contract to oil and gas producers. Drilling may be land-based (domestic or global) or conducted in shallow or deep water, and each type requires a unique set of capital equipment. Contracts can be for a single well or for multiple wells in a geographic location.

Dependence on Third Party Suppliers

Demand among drilling companies for consumable supplies, ancillary rig equipment and third party services can exceed local supply and result in increased prices and delivery delays.

Volatile Oil Prices

Demand for drilling is affected by gas and oil prices, which can be very volatile.