The oil country tubular goods market is anticipated to record a CAGR of 6.5% during the forecast period. The market is anticipated to grow from an estimated valuation of US$ 23.71 Mn in 2022 to reach a valuation of US$ 44.50 Mn by 2032.
Due to the high energy demand, the need for exploration activities and investments is increasing, which is driving 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 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.
Increasing Demand for Premium Grade Oil Country Tubular Goods Will Provide Lucrative Opportunities
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 United States Energy Information Administration (EIA) predicts that crude oil production in the United States Federal 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.
Expansion of Offshore Drilling Operations would lead North America to 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, including the Gulf of Mexico. 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 fueling the region's growth.
Manufacturers Place their Bets on Advanced Technology to Hack Better Market Position
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:
In January 2022, Jindal SAW announced that it had formed a joint venture (JV) with Hunting Energy Services to establish an oil country tubular goods (OCTG) threading plant in Nashik, India. The plant will produce equipment for oil and gas drilling services. The initial investment will be in the range of US$ 20-25 million, with Jindal SAW holding a 51:49 stake. The facility is expected to open by the end of 2022.
Oil Country Tubular Goods Market: Drivers & Restraints
Ever-increasing demand and succeeding energy production is considered as one of the biggest driver for the increasing demand of the oil country tubular goods and global oil country tubular goods market penetration.
The key driving forces for the global oil country tubular goods market are increasing drilling and production activities, mounting shale gas exploration and rise in the number of oil wells per rig. Also, there is a growing investment in the unconventional sources of oil and gas which is rising the need of oil country tubular goods immensely.
Oil Country Tubular GoodsMarket: Region-wise Outlook
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 mentioned region is projected to be China as an outcome of the 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.
Oil Country Tubular Goods: Key Players
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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