High Energy and Demand for Increased Exploration is Driving Industry Demand for Oil Country Tubular Goods, Says Future Market Insights.
The oil country tubular goods market is anticipated to record a CAGR of 6.5% during a 10-year forecast period. The market is anticipated to grow from an estimated valuation of US$ 23.71 million in 2022 to reach a valuation of US$ 44.50 million by 2032.
That’s according to a report released by Future Market Insights, which said high energy demand was driving the need for exploration activities and investments was increasing, in turn accelerating the industry’s demand for oil country tubular goods.
“Economic growth is the primary goal of any developing country, and an increase in production activities will result in an increase in natural resource supply. This will increase production and exploration operations in the oil and gas industry, resulting in the global oil country tubular goods market expanding,” the report said.
“The global oil country tubular goods market is extremely lucrative. The oil and gas industry necessitates a large sum of money. As a result, maintaining the balance in crude oil and gas production is critical in order to avoid any loss of money, machinery, or resources. This is what drives the global oil country tubular goods market.
“The prospects for oil country tubular goods in oil and gas industry are striking due to the increasing production activities in the industry. Owing to the high energy demand, the need for exploration activities and investments are increasing which is further driving the need of OCTG goods in the industry.
“The growth in oil and gas industry is anticipated to fuel the growth of global oil country tubular goods market along with the increasing exploration from unconventional reserves. It has also upturned the OEM’s towards the launching of higher technology content to meet the new generation of challenges and demanding field conditions, thereby driving the demand for global oil country tubular goods across the globe.
“A notable trend in the oil country tubular goods market is an increase in rig count, which is accompanied by an increase in good footage. Furthermore, the ongoing implementation of hydraulic fracturing technology and horizontal drilling is expected to significantly boost industry growth.”
The report flagged The United States Energy Information Administration’s (EIA) prediction that crude oil production in the Gulf of Mexico (GOM) will increase over the next two years. Furthermore, by the end of 2022, 13 new projects could account for approximately 12% of total Gulf of Mexico crude oil production, or approximately 200,000 barrels per day (b/d), creating a significant demand for high grade oil country tubular goods during the forecast period.
Offshore Expansion Drilling Would see North America Capture Major Market Share
Over the next few years, North America is expected to be the largest market. This is because offshore drilling operations are expanding in several regions. Furthermore, the widespread development of oil and gas fields in both onshore and offshore regions is expected to provide huge business opportunities for companies operating in the oil country tubular goods business during the forecast period, further fuelling the region’s growth.
Vallourec S.A., Tenaris S.A., Tenergy Equipment and Services Ltd., National oil well Varco, Inc., Arcelor Mittal S.A., Nippon Steel & Sumitomo Metal Corp., and Sumitomo Metal Corporation are among the market leaders in Oil Country Tubular Goods. U.S. Steel Tubular Products, Inc., Tmk Ipsco Enterprise, Inc., JFE Steel Corp., SB International, Inc., and Evraz PLC are among the emerging market players. Due to the growing industrial demand for advanced drilling technology, companies are focusing more on developing advanced technology-based products. Recent market developments include:
Drivers & Restraints
Ever-increasing energy demand and production is considered one of the biggest drivers for accelerating the global oil tubular goods market.
That’s according to a research paper released by who said these market forces were increasing drilling and production activities and shale gas exploration with a rise in the number of oil wells per rig.
“Also, there is a growing investment in unconventional sources, which is substantially expanding the need of oil country tubular goods.”
“The global oil country tubular goods market is expected to register a favourable growth for the forecast period 2015-2025. Asia-Pacific is likely to dominate the global oil country tubular goods market. The key countries in the region is projected to be China as a result of strong growth in exploration and production of oil and gas.
The North American market is expected to depict the high growth rate in the forecast period due to the abundant shale gas reserves resulting in the higher demand of drilling activities.
Some of the key market participants in global oil country tubular goods market are Arcelormittal, MRC Global, National Oilwell Varco, Jindal SAW Ltd, Nippon Steel & Sumitomo Metal Corporation, JFE Steel Corporation, etc.
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