Oil & Gas Support Services NAICS 213112

Nov 27, 2025 - Trump Plans Huge Oil and Gas Drilling Expansion

• The Trump administration has unveiled a draft plan to dramatically expand offshore oil and gas drilling, proposing as many as 34 lease sales across 21 regions, including California, the Gulf of Mexico, Alaska, and the Arctic, S&P Global reported in November. Trump’s reversal of prior restrictions could unlock billions of barrels of federal offshore reserves, boosting long-term production capacity, and demand for oil and gas services. Oil industry groups broadly praised the move, framing it as essential to restoring US energy dominance, lowering costs, and creating jobs. For producers, the plan offers greater access to high-potential, previously off-limits areas, raising the prospect of higher output and capital investment. However, the administration’s move to drill in environmentally-sensitive areas is expected to face strong political pushback from environmentalists and coastal states.
• The latest Current Policies Scenario from the International Energy Agency (IEA) projects that global demand for oil and natural gas won’t peak this decade, but instead will continue to rise through 2050 under existing policy settings, The Wall Street Journal reports. For suppliers of services to the oil and gas industry this signals sustained opportunity as energy producers are more likely to continue upstream investment, drilling activity, and infrastructure build-out rather than scaling back operations. Previously, under its so-called peak oil scenario, the IEA had forecast a decline in global demand for oil and gas as countries shifted away from fossil fuels and toward EVs and renewable energy sources, according to WSJ. The IEA’s revised outlook extends the demand window for suppliers to energy companies, meaning business plans premised on a rapid fossil-fuel phase-out may need to be revisited.

• Amid a slump in demand for their services from energy producers, oil field services companies are shifting to supply power to data centers, The Wall Street Journal reports. AI requires plenty of power to fuel data centers and oil field services companies, including Solaris Energy Infrastructure and Liberty Energy, are getting into the power business, installing and operating power-generation turbines typically used by energy-hungry frackers, according to WSJ. Compared to their usual customer base, tech companies have healthier growth prospects and bigger budgets. Microsoft alone plans to spend $80 billion on data centers supporting AI this year, 80% more than what major oil companies Exxon and Chevron combined are expected to spend on capital expenditures, per WSJ. Still, power isn’t a meaningful part of most oil-field service companies’ revenue yet and the shift carries the risk that tech companies will eventually connect to local utilities.
• Producer prices for oil and gas support activities were flat in August compared to a year ago, after rising 5.9% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Despite the recent easing, industry producer prices remain historically high. Employment by oil and gas support services firms shrank 3.2% year over year in July to its lowest level in two years, while the average industry wage rose 3.6% YoY in July to $35.81 per hour, BLS data show. Declining crude oil prices have contributed to US oil producers slowing their drilling and completion activity this year, reducing demand for oil and gas support services, according to the Energy Information Administration.