Companies in this industry manufacture machinery and equipment used in oil and gas exploration and production, as well as water well drilling machinery. Major companies include Baker Hughes, a GE Company (BHGE); National Oilwell Varco; and Schlumberger (all based in the US); along with Nabors Industries (Bermuda); Shandong Kerui Petroleum Equipment (China); Technipfmc (UK); and Weatherford International (Ireland).
Demand is driven by oil and gas prices. The profitability of individual companies depends on engineering expertise and efficient production. Large companies have economies of scale in purchasing. Small companies can compete effectively by specializing. The US industry is highly concentrated: the top 50 companies account for about 80% of revenue.
Products, Operations & Technology
Major products include drill bits, drilling pipe, drilling motors, derricks, valves, portable rigs, well monitoring instruments, tubing, wellheads, blowout preventers, wireline systems, and oil and gas separators. Many companies also offer a line of oil and gas field services. Such services may include drilling, well completions, geological and drilling surveillance, and artificial lift services (pumps and other systems used to lift oil when a well no longer flows by itself).