Oil and gas services sector encompasses all products and services that support exploration and production of oil and gas resources. This is in support of the upstream oil and gas sector.
This oilfield services (OFS) industry includes services such as seismic services, formation evaluation, drilling, well construction, production services and well completion services.
Today, some of the oilfield services companies such as Schlumberger and Halliburton have shifted their offers to more technology-based solutions. Other OFS players like Helmerich & Payne focus on services which include drilling rigs, equipment manufacturing, drilling products and services.
You can track these companies on an ETF tracking index called VanEck Vectors Oil Services ETF.
What do Oil and Gas Services Companies Do?
You might be asking or wondering what oil and gas servicing companies do. The truth is that they do a lot, and provide lots of services in support of oil and gas exploration activities.
For example, they construct rigs, design pipes and pipelines, provide engineering services, carry out construction and technical works which ranges from mechanical, electrical to supplies of goods.
You will also find others who provide such services as hospitality or catering services, security, transport and logistics among othrs.
Who is the biggest oilfield service company?
You should be aware that Schlumberger is the world’s biggest oilfield services company. For example, the company earned $32.81Bn in revenues as recorded in their 2018 full year results. This was a 7.8% increase from the 2017 revenues of $30.44Bn
Which oil company is the richest?
Exploration and production companies usually require oil and gas services. This is to help them extract the hydrocarbon resources from the ground.
Saudi Aramco is the richest and most profitable oil company in the world. To show you how profitable this company is, it generated $111.1 billion in net income in 2018.
This exceeded Apple. The second most profitable company with a net income of $59 billion.
Shell Petroleum tops as richest oil company in Nigeria with US$388.4 billion (2018) in revenue.
Drilling as An Example of Oil and Gas Services
In oil and gas exploration, drilling rigs are used to dig into the earth’s subsurface to extract oil and gas resources. These resources are mainly crude oil or natural gas.
An oil drilling rig consists of a set of equipment that perform a variety of services which includes sampling deposits, testing the physical and chemical properties of the rock, soil and groundwater, and tunnelling and drilling.
Transocean and Ensco are two of the largest rig contractors.
You should know that rigs can be land-based or marine-based structures. These are commonly referred to as onshore and offshore rigs respectively. The variety of the rig depends pn the location, type and drilling technique to be used.
World’s Biggest Offshore Drilling Companies
- Nabors Offshore – $3.05bn. …
- China Oilfield Services Limited (COSL) – $3.17bn. …
- Saipem – $4,27bn. …
- Weatherford – $5.74bn. …
- Petrofac – $5.83bn. …
- Baker Hughes – $22.9bn. …
- Halliburton – $23.99bn. …
- Schlumberger – $32.8bn.
In conclusion, you have seen what oil and gas services are about, who is involved and some examples of companies involved in these activities.
The oilfield services sub-sector of the upstream segment is composed of firms or organizations that support E&P activities in oil and gas. These firms build infrastructure and provide specialized equipment, services and skills needed.
All this goes into exploring, drilling, testing and producing crude oil or natural gas wells.
Oil and gas services sector is a multi-billion dollar global industry. You can be part of it as an investor, employee or entrepreneur. You can play a role in the oil and gas sector at the level which you are able to plug in at.