| SIC Codes: | 3533 |
| NAICS Codes: | 333132 |
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 US-based Baker Hughes, Cameron International, and National Oilwell Varco; Weatherford International (headquartered in Switzerland, but operationally based in the US); and Schlumberger (headquartered in Curaçao, but operationally based in the US).
Demand is driven by oil and gas prices. The profitability of individual companies depends on engineering expertise and efficient production operations. Large companies have economies of scale in purchasing. Small companies can compete effectively by specializing. The industry is highly concentrated: the top 50 companies account for 80 percent of revenue.
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 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).