Oil Country Tubular Goods Market was worth Of USD 47.66 billion in 2018and is expected to reach USD 74.95 billion in 2025, growing at a CAGR of 6.71% from 2019 to 2025.
Increase in drilling and production activities, growing energy demand to fulfill the consumption needs, rise in offshore drilling activities, need for alternative technologies, exploration of shale resources as well as capital expenditure improvement in the upstream sector are the basic factors behind the increased demand for the oil country tubular goods market.
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Oil Country Tubular Goods are defined as the tubes which are used in oil and gas production. These include drill pipe, casing and tubing. OCTGs are used both onshore and offshore that is on the land and in the ocean. Each wellbore is processed in multiple phases during which drill pipe, casing, and tubing are used alternatively. The American Petroleum Institute (API) specifies standardized specifications that define features of Oil Country Tubular Goods and classify in to 10 grades.
These properties can be achieved through the chemical composition of steel and subsequent heat treatment. Drill pipe is a heavy tube that rotates the drill bit and circulates drilling fluid. Casing pipe lines the borehole. It sustains axial tension by its dead weight, internal pressure by fluid purging and external pressure by surrounding rock formation. Tubing is to pipe through the bore to extract oil and gases from wellbore.
A notable trend that can be observed in the OCTG industry is accelerating rig count coupled with improvement in footage of wells drilled. Also, the ongoing implementation of hydraulic fracturing technology and horizontal drilling is also anticipated to spur the industry growth significantly. According to Energy Information Administration (EIA), in 2016, hydraulically fractured wells accounted for around 68 % of all-natural gas and oil wells drilled in U.S. and 83% of the overall linear footage drilled. Horizontal drilling activities in U.S. boost the demand for premium-grade products, providing better margins on OCTG. Based on the product categories, the OCTG market can be segmented into drill pipe, casing, and tubing.
The global OCTG market is segmented into type, area of application and region. On the basis of type the OCTG market is segmented in to drill pipe, casing and tubing. On the basis of area of application, the market is segmented in to onshore and offshore. On the basis of grade, the market is segmented in to premium and API.
The regions covered in this Oil Country Tubular Goods Market report are North America, Europe, Asia-Pacific, and the Rest of the World. On the basis of country level, the market of Oil Country Tubular Goods is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, South East Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.
Increasing Demand for Energy Worldwide is Driving the OCTG Market
The ever-increasing energy demand is the reason for oil and gas exploration and production attractiveness. Due to increasing demand of oil extraction, the market of oil country tubular goods is growing rapidly. For example, India is heavily reliant on crude oil and LNG imports with about 82.8% import dependence for crude oil and 45.3% for natural gas/LNG. The net foreign exchange outgo is 63.305 million US$ in the financial year 2017-18 in terms of crude oil imports. India produced 35.2 million tons of petroleum products from indigenous crude oil production whereas the consumption of petroleum products is 204.9 million tons.
This statistic shows the oil requirement in India and subsequently the demand of Oil & gas which in turn propels the OCTG market. After the recovery of oil prices from the 2014 collapse, the activity in oil & gas sector has strengthened. The oil & gas operator companies are increased their investment in developing countries like India due to the huge available market. This intense competition between petroleum producers force them to drill new oil and gas bore which in turn increases the use of OCTG propelling the market further. The main restraining factor of OCTG market is high investment and lack of skilled labor. Technological development and innovative tools are creating opportunities for the OCTG market.
North America is expected to dominate the OCTG Market.
North America is dominating the OCTG market as it has advanced technical appliances and oil bore followed by the Middle East. Latin America is the third largest OCTG market. As horizontal drilling in the United States is in trend, the onshore rig count has become less. Rig or appliance efficiency is increasing in US due to technological advancement as the number of wells a rig can drill is rising significantly. The OCTG market in North America is estimated to grow due to new good drilling and expanding producing well base. Horizontal drilling is also driving the demand of premium grades and connections.
As for Asia Pacific, due to the huge demand of oil & gas by developing countries like India and China the competition in the OCTG market is intense. China is more active for offshore oil bore which in turn enhances the demand of the OCTG market. Within the Asia Pacific, the rig count increased by 12%.
|Historical data||2015 - 2020|
|Forecast Period||2021 - 2027|
|Market Size in 2020:||USD 47957.51 Million|
|Base year considered||2020|
|Forecast Period CAGR %:||
|Market Size Expected in 2027:||USD 77110.10 Million|
|Tables, Charts & Figures:||175|
|Nippon Steel & Sumitomo Metal Corporation, Tenaris S. A, Vallourec, National-Oilwell Varco, Inc., ILJIN STEEL CO, TPCO Enterprise, Inc., TMK Ipsco Enterprises Inc., and others.|
|Segments Covered||By Grade, By Type, By Area Of Application|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|