Oil and Gas Pipeline and Related Structures Construction Revenue Benchmarks
The average oil and gas pipeline and related structures construction business in the United States generates $26.2M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,798 oil and gas pipeline and related structures construction businesses in the U.S., employing 173,515 workers with an average profit margin of 7.0%. The average employee in this industry earns $96K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Oil and Gas Pipeline and Related Structures Construction Business Actually Do?
Pipeline construction contractors — oil gathering lines, gas transmission, refined products lines. Cyclical with energy prices.
Who buys: Oil & gas producers, pipeline companies, refineries.
Average Revenue
$26.2M
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$272K
per year
Total Businesses
1,798
in the US
Est. Owner Income
$1.8M
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$96K
per year (BLS)
Market Saturation
0.5
firms per 100K people
How Much Do Oil and Gas Pipeline and Related Structures Construction Charge?
Pipeline contractors work on multi-million-dollar oil/gas infrastructure projects.
| Service | Typical range |
|---|---|
Natural gas gathering line (per mile) | $500,000–2,000,000 |
Oil transmission pipeline (per mile) | $2M–7M |
Compressor station construction | $5M–50M+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete oil and gas pipeline and related structures construction business plan
A 12-section data-backed business plan for a oil and gas pipeline and related structures construction business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the oil and gas pipeline and related structures construction industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Materials & subcontractors | $38 | $9.9M | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $7.9M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $1.3M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $826K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $4.5M | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $1.8M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.01%
openings/year
Closure Rate
8.29%
closings/year
Net Job Growth
+4.11%
annual
Businesses Closed
1,103
in 2023
Firm Count Trend
Should You Start a Oil and Gas Pipeline and Related Structures Construction Business?
Startup Cost
$25K – $150K
Break-Even
1 months
5-Year Survival Rate
52.0%
Related Industries
Frequently Asked Questions
- What does a oil and gas pipeline and related structures construction business do?
- Pipeline construction contractors — oil gathering lines, gas transmission, refined products lines. Cyclical with energy prices. Oil & gas producers, pipeline companies, refineries.
- How much do oil and gas pipeline and related structures construction charge?
- Pipeline contractors work on multi-million-dollar oil/gas infrastructure projects. See the pricing table above for typical rates by service type.
- How much does the average oil and gas pipeline and related structures construction make per year?
- The average oil and gas pipeline and related structures construction business generates $26.2M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $1.8M per year at a 7.0% profit margin.
- How many oil and gas pipeline and related structures construction businesses are there in the US?
- There are 1,798 oil and gas pipeline and related structures construction businesses operating in the United States, employing a total of 173,515 workers.
- How much does it cost to start a oil and gas pipeline and related structures construction business?
- Startup costs for a oil and gas pipeline and related structures construction business typically range from $25K to $150K, with a 5-year survival rate of 52.0%.
- What is the average salary in the oil and gas pipeline and related structures construction industry?
- The average employee in the oil and gas pipeline and related structures construction industry earns $96K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The oil and gas pipeline and related structures construction industry is actively growing — adding jobs at a net rate of 4.1% per year. New establishments are opening faster than existing ones close (10.0% entry vs 8.3% exit), indicating healthy demand.
Approximately 65% of oil and gas pipeline and related structures construction businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,103 firms in this industry closed permanently.
Employment & Wages
The average employee in the oil and gas pipeline and related structures construction industry earns $95,635/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 4,406 establishments employing 137,555 people, the typical business has about 31 employees.
Industry Trend (2000–2023)
The oil and gas pipeline and related structures construction industry has declined 1% since 2000 (from 16,545 to 16,340 firms).
See full historical statistics →Compare Oil and Gas Pipeline and Related Structures Construction revenue with other industries: