Oil & Gas Construction Market

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Oil & Gas Construction Market

Due to growing production and emergence of shale & LNG, North American 'Oil & Gas Construction Market' is poised for growth in coming years. However, the current global pandemic has resulted in many job cuts and operational losses. The details regarding these drivers and challenges to the 'Oil & Gas Construction Market' have been illustrated in detail below. The competitive landscape of key players in this market can be found in the attached spreadsheet.

Market Drivers

Challenges

    COVID-19 Pandemic & Lockdown

    • The CoVID-19 pandemic has adversely affected many sectors in construction industry, as all work was halted due to the lockdown and accompanying restrictions.
    • Oil & gas construction industry has also been affected by the pandemic. The pandemic has led to reduced oil & gas demands all around the globe. In Louisiana, "more than 40% of liquefied natural gas (LNG) investments scheduled for this year have been postponed or canceled."
    • According to a report by Rystad Energy, the pandemic has resulted in 44,550 job cuts in oil & gas operations. There were around 16,000 job cuts in oil & gas construction and 13,450 job cuts in oil & gas well drilling. Since the outbreak in February, oil & gas construction jobs have reduced by 10%.
    • The oil & gas construction projects that had already commenced pre-pandemic are now at a risk of force majeure claims. ("as a result of a contractor experiencing an outbreak of COVID-19 among its workforce," or "due to government restrictions leading to labor difficulties or supply chain interruptions")

Competitive Landscape

Additional Resources

Research Strategy

For the competitive landscape, information regarding revenue and number of employees was not publicly available for some of the key players. In such cases, third party sources were used to supply the information regarding revenue and number of employees. The product and service details were limited to 'Oil & Gas Construction Market' to ensure the relevancy of data provided. All the companies analyzed operate in North American market.
In case of challenges to 'Oil & Gas Construction Market,' we were able to ascertain only one challenge that resulted from the current pandemic. In order to determine any other challenges pose to the 'Oil & Gas Construction Market,' we reviewed reports published by reputed consulting firms such as Deloitte and McKinsey. However, no other challenges could be identified. We also did a cross review of annual reports by several key players in the market. This also proved inefficient as challenge accept the pandemic were found. We did find challenges posed to 'Oil & Gas Market' in general. However, they were not related to 'Oil & Gas Construction Market.'
We then tried to cross-examine market reports identifying any challenges posed to 'Oil & Construction Market,' but it also proved futile. We did find a few helpful paid market reports that can prove to useful. The direct links to these reports have been provided above.

Calculation

The original revenue for L&T Hydrocarbon Engineering was provided in INR.
Keeping the current exchange rate of 1 INR = 0.0134049 USD:
Sources
Sources