Oil & Gas Support Services

The 7,731 oil and gas service companies provide a variety of support activities to oil and gas operations on a contract or fee basis. Services support the exploration, drilling, testing, and clean-up operations for on-shore or off-shore oil and gas wells.

Dependence On Petroleum Demand

During periods of slow or negative economic growth, demand for petroleum products falls, resulting in fewer capital projects by the oil and gas industry.

New Environmental Regulations

Adoption of new federal or state laws limiting the use of specific technologies and services, such as hydraulic fracturing, vapor extraction processes (VPX), and cyclic steam stimulation (CSS) could make it more difficult and expensive to obtain petroleum products from unconventional sources.

Sep 27, 2026 - Ongoing Demand For Services

• ExxonMobil expects sustained oil and gas investment to remain necessary for decades, supporting long-term demand for US oilfield services. In its Global Outlook to 2050, the oil-and-gas giant estimates oil production would decline about 15% annually without new investment, partly because US shale wells decline relatively quickly. That would create ongoing demand for drilling, well completions, hydraulic fracturing, maintenance, and production-enhancement services. Technology will also be increasingly important as US tight oil fields mature. In the Permian Basin, average well lateral lengths have increased more than 2.5 times since 2010, while completion intensity has risen more than fourfold. ExxonMobil expects North American oil production to peak sometime next decade, but continued advances in fracturing, enhanced oil recovery, and other technologies could help offset declines. Growing natural gas production and LNG exports should also support demand for gas-field services and infrastructure.
• The Federal Reserve Bank of Dallas’s second-quarter 2026 Energy Survey showed oil and gas activity reached its strongest level since 2022, with oilfield services firms reporting improvement in most indicators. Specifically, the industry’s equipment utilization index remained positive and was roughly unchanged at 31.9, the operating margin index increased markedly from -7.0 to 52.2, the first positive reading in many quarters, suggesting margins expanded. The prices received for services index advanced from 9.3 to 24.5. Although industry activity and hiring increased modestly, oilfield service companies remained cautious about the longer-term outlook despite expectations for year-end WTI crude prices averaging $81 per barrel. Overall, the Dallas Fed survey points to improving near-term demand for drilling and well services, tempered by rising operating costs and continued uncertainty over future investment.
• Supply disruptions and renewed investment in oil and gas are creating a more active but volatile environment for oil and gas support service providers. Energy executives attending the energy industry CERAWeek conference in Houston in March warned that Middle East tensions, particularly around the Strait of Hormuz, could lead to sustained supply tightness, with infrastructure damage and logistical challenges extending disruptions beyond the near term. For support service providers, this outlook signals increased demand for drilling, field services, logistics, and infrastructure support, as companies shift capital back toward LNG and upstream oil and gas projects. Major investments in US LNG facilities and Gulf of Mexico and shale development will likely drive new project activity and service contracts. However, ongoing geopolitical uncertainty and price volatility in the energy markets may create operational unpredictability, requiring service firms to remain flexible.
• Producer prices for oil and gas support activities rose 1.3% in August compared to a year ago, after posting a flat previous August-to-August annual comparison, according to the latest US Bureau of Labor Statistics data. While down from their March 2025 peak, industry producer prices remain historically high. Employment by oil and gas support services firms shrank 2.7% year over year in July, while the average industry wage rose 6.4% over the same period to $38.11 per hour, easing from its peak in June, BLS data show. Despite steeply rising oil and gas prices triggered by the Iran war, big energy producers remain reluctant to drill new wells, depressing demand for oil and gas support services.

Industry size & Structure

A typical oil and gas services company has 27 employees and annual revenues of $10.1 million.

• About 7,730 firms employ 212,200 workers and generate $78.2 billion in annual revenue by providing support activities for oil and gas operations in the US.
• About 82% of firms employ fewer than 20 workers, accounting for 11% of industry revenues. Almost 5% of firms have over 100 employees and earn 64% of industry revenues.
• Large service firms include Halliburton Company, SLB (formerly Schlumberger Ltd), Weatherford International, and Baker Hughes.
• Nearly half (48.2%) of all oilfield services firms in the US are located in Texas and Oklahoma, home to 5,074 and 1,516 establishments, respectively.