Oil country tubular goods are also known as OCTG, a family of seamless rolled products drills pipe, casing, and tubing. It is used in production and exploration activities on offshore and onshore reserves. Drill pipe is the heavy seamless tube that circulates drilling fluid, rotates the drill bit and Casing pipe for lines the borehole. Tubing is the pipe through which the gas or oil is transported from the wellbore.
The global oil country tubular goods market size projected to grow over a CAGR of 7.05%, during the forecast period, 2020-2027. The major factors driving the market are growth in the proven shale reserves, high production and exploration activities, and escalating investments from the oil and gas operators. Additionally, the growing demand for premium pipes and the advent of technologically advanced pipes vessels is expected to fuel the growth of the global oil country tubular goods industry in the estimated periods. Further, the falling supply-demand gap, the low oil breakeven prices due to the technological advancement, reduced oil services cost, and augmented directional drilling units positively impact the demand. Also, the surge in drilling and production activities, rising shale gas exploration, and upsurge in the number of oil wells per rig likely to trigger the robust growth of the market in the analysis period.
Moreover, the escalation in demand for energy drives the need for exploration activities and development of deep-water and offshore reserves expected to lead the growth of oil country tubular goods market across the globe. Also, the continuing implementation of hydraulic fracturing technology and horizontal drilling is expected to have a positive impact on the growth of the global oil country tubular goods market share in the future timespan. The interconnection of the pipeline network promote the formation of an upstream oil and gas resources multi-subject multi-channel supply, a unified pipeline network efficient gathering and transportation. Furthermore, the swelling demand and succeeding energy production and rising investment in the unconventional sources of oil and gas likely to bolster the growth of the global oil country tubular goods market in the estimated periods.
The economic resurgence in many parts of the world is leading to demand energy. Oil & gas is the primary source in the energy outlook of the world. Many companies in the OCTG industry have invested in the exploration & production activities to meet the vast demand for oil and gas. Hydrocarbons are widely used in power generation, transportation, processing, processing, and manufacturing. These massive growths of drilling operations worldwide are expected to drive the growth of the oil country tubular goods market in the coming years.
With the increasing demand for petroleum resources globally, the exploration and development of oil and gas resources in deep-water areas are imperative. As the focus of exploration in recent years, the number of drilling wells has been increasing year by year. Oil and gas upward channeling means that after drilling the oil and gas layer, under the effect of the pressure difference between the pressure of the oil and gas layer and the pressure of the drilling fluid column. In deep-water operations, a longer riser is required to complete the circulation of drilling fluid.
Based on the grade, the global oil country tubular goods market bifurcates into the American Petroleum Institute (API) and Premium. The premium segment is projected to grow at a higher CAGR in the forecast period, 2020-2027. It is primarily attributed to the increasing demand for the premium grade from upstream activities and applicable in gas wells, horizontal wells, and high pressure and temperature wells.
The American Petroleum Institute (API) segment will capture a healthy growth rate in the estimated period. It has set standard specifications for oil country tubular goods based on their properties, such as ductility, temperature, and thermal compatibility.
Based on the manufacturing process, the global oil country tubular goods market segregated into seamless and electric resistance welded. The seamless segment projected to dominate the global oil country tubular goods market by 2027. Due to growing usages of the seamless process in higher user preference in harsh drilling environments and their ability to withstand in extremely high pressure without cracking will drive the OCTG market in the seamless process.
The electric resistance welded will grow at a significant rate in the forecast period owing to its cost-effectiveness and can be easily customized.
Based on the product, the global oil country tubular goods market classified into the well casing, production tubing, and drill pipe. The well casing segment is estimated to have the highest CAGR over the forecast period due to well casing help in avoiding the contamination of groundwater and provides stabilization for uninterrupted drilling operations.
The production tubing segment will grow at a significant rate during the forecast period. It is used to transport crude oil or natural gas or from the producing formation to the facilities where it will be processed once the drilling is complete.
Based on the application, the global oil country tubular goods market bifurcated into Onshore and Offshore. The Onshore segment will hold a higher market potential share by 2027. It is attributed to the transportation oilfield equipment in onshore is much easier to offshore and cost for land-based drilling is very low in onshore applications
The onshore segment will experience steady growth during 2020-2027. Due to the easy availability of workforce and excellent flexibility over planning.
Based on geography, the global oil country tubular goods market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific estimated to occupy the lion’s share in the oil country tubular goods market by 2027. It is due to the mounting exploration activities of deep-water and unconventional reserves and growing technological advancements in increasing productivity and reducing production costs.
North America will capture a prominent share of the oil country tubular goods market by 2027 due to the surge in the offshore drilling activities in the Gulf of Mexico, shale boom, and rise in discovering potential untapped oil and gas reserves.
Companies such as Tenaris S.A, Vallourec, TMK Group, United States Steel Corporation, Nippon Steel & Sumitomo Metal Corporation, SPIE Oil & Gas Services, Hunting Energy Services, Kelly Pipe Co. LLC, Argus Machine Co. Ltd., Benteler International AG, MRC Global Inc., ACE O.C.T.G. Ltd, Centric Pipe, LLC, U. S. Steel Tubular Products, Sandvik AB, and Energex Tube are the key players in the global oil country tubular goods market.
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