In 2026, China’s oil drilling equipment industry will show a unique development trend.
The following will provide an in-depth analysis of the industry from multiple dimensions.
First, let’s understand the industry overview.
Petroleum drilling equipment has a clear definition and classification according to the “National Economic Industry Classification (GB/T 4754-2017)”.
Special equipment for oil drilling refers to the manufacturing of special mining equipment for land and offshore oil and natural gas, but does not include the manufacturing of deep-sea oil and natural gas exploration and production platforms and related floating equipment; the manufacturing of deep-sea oil drilling equipment refers to the manufacturing of special mining equipment for oil and natural gas in the ocean above 1500m, excluding the manufacturing of shallow sea and land oil and natural gas exploration and production platforms below 1500m and related floating equipment.
In terms of the industrial chain, the upstream of the oil drilling and production special equipment industry mainly includes the manufacturing of steel, aluminum and other raw materials, the manufacturing of drill bits, bearings, hydraulic devices and other parts, as well as oil exploration, petroleum engineering design, engineering contracting and other links.
The downstream industry includes oil transportation, warehousing, refining and sales.
In the upstream field, my country’s oil drilling equipment raw material suppliers include Hegang, Shougang, Angang and other steel and non-ferrous metal companies, and parts suppliers include Diwell, Yingliu Co., Ltd., Changbao Co., Ltd., Hengli Hydraulics, etc.; in the midstream field, my country’s oil drilling and production experts
Equipment manufacturers include Deshi Co., Ltd., Rutong Co., Ltd., Petrochemical Machinery, Gemstone Machinery, Molong Co., Ltd., Dawson Co., Ltd., etc.; downstream mainly include petroleum transportation and petrochemical companies, including PetroChina, Sinopec, Hengli Petrochemical, Rongsheng Petrochemical, COSCO Shipping, etc.
In terms of industry development history, China’s oil drilling and production special equipment industry has developed for more than 100 years.
From the “oil digger” (a steam-driven drilling rig) used during the Qing government to the Soviet-style drilling rig used when the People’s Republic of China was founded, to China’s first self-made “one-button” human-computer interaction 7,000-meter automated drilling rig in 2021, great progress has been made.
Its development process can be mainly divided into four stages.
In terms of policy background, in recent years, our country has introduced a number of oil and gas exploration and drilling support policies, and also issued corresponding development and construction plans.
As of March 2026, there are many summaries of policies related to special equipment for oil drilling.
Looking at the current status of industry development and supply, the output of representative companies is concentrated in hundreds to tens of thousands of units/set.
In 2024, the product output of leading companies will mainly range from a few hundred to tens of thousands of units. The product output of Rutong Co., Ltd. and Dawson Co., Ltd. has increased significantly compared with 2023.
In 2024, the output of Rutong Co., Ltd.’s lifting equipment, Carter equipment, and turnbuckle equipment will be 17,691 units/set, 21,318 units/set, and 2,750 units/set respectively, with year-on-year increases of 22.95% and 14.
65%, 14.54%; Shandong Molong’s special equipment output was 251,200 tons, a year-on-year increase of 52.15%; Deshi Co., Ltd.’s oil drilling special equipment output was 4,526 units, a year-on-year increase of 4.09%.
In terms of market size, it will be approximately 159 billion yuan in 2025.
According to the data disclosed in the prospectus of Deshi Co., Ltd., the oil drilling equipment industry achieved revenue of 129.694 billion yuan in 2020.
The National Bureau of Statistics disclosed that the revenue of enterprises above designated size in the oil drilling equipment manufacturing industry in 2020 was 123.672 billion yuan, which corresponds to the revenue of enterprises above designated size in China’s oil drilling and production special equipment industry accounting for approximately 95% of the total industry revenue. The above scale was obtained after preliminary accounting.
In terms of competition pattern, based on the business income of each company, the market share of petrochemical machinery and petroleum machinery in 2025 will both be 2.7%, forming a duopoly pattern; secondly, the market shares of Rutong Co., Ltd., Shenkai Co., Ltd., and Deshi Co., Ltd. are approximately 0.3%, 0.2%, and 0.1% respectively.
In terms of the regional competition pattern, from the perspective of the regional distribution of the industrial chain, Shandong Province currently has a relatively complete industrial chain layout of special oil drilling and production equipment, involving upstream raw material links, midstream special oil drilling and production equipment manufacturing links, and downstream petrochemical links.
In terms of industry development prospects and trend predictions, there are many manifestations of industry development trends.
S&P Global predicts that global investment in oil exploration and development will maintain an average annual growth rate of 5% in the next few years.
Looking forward to the future, benefiting from the cyclical recovery of global crude oil production, China’s oil drilling and production special equipment industry is also expected to usher in a boom cycle. By 2031, China’s oil drilling and production special equipment industry market size is expected to reach 225.5 billion yuan.
