Oil & Gas Drilling
This industry consists of contractors that own and operate the rigs and heavy machinery used to physically bore wells on behalf of E&P companies.
Why it exists
Oil & gas drilling exists to convert geological potential into producing wells. It is the gateway between underground resources and surface production.
Why it’s necessary
Without drilling, proven reserves remain theoretical. Drilling transforms capital into physical access to hydrocarbons.
Key components
Drilling rigs (land and offshore)
Directional and horizontal drilling systems
Well planning, casing, and cementing
Skilled crews and drilling engineers
How to evaluate businesses
Evaluate rig utilization, day rates, fleet age, operating margins, and exposure to offshore vs onshore. This is a high fixed-cost, cycle-sensitive business where survival and balance sheet matter as much as profitability.
How the industry could be improved
More automated rigs, real-time subsurface modeling, predictive maintenance, standardized well designs, and tighter integration with completion and production teams to reduce cycle time and dry-hole risk.