Oil Country Tubular Goods Market Outlook 2031
The global oil country tubular goods market size was around USD 22.39 billion in 2022 and is projected to reach USD 39.80 billion by 2031, expanding at a compound annual growth rate (CAGR) of around 6.6% during the forecast period, 2023 to 2031. The market growth is attributed to the surging oil and gas industry across the globe.
Oil country tubular goods (OCTG) are referred to pipes and tubes, which are used in the production of oil and gas. OCTG products are mainly used in the drilling and extraction activities of oil and gas. These products need to adhere to either API grade or other standard specifications. OCTG includes drill pipes, well casing pipes, and production tubing.
Drill pipes are used to rotate a drill bit and circulate drilling fluid. Drill pipes are hollow that allows the drilling fluid to flow through them and back. Drill pipes are subjected to axial tension, high internal pressure, and high torque due to the drilling process. Heavy-duty and high-quality drill pipes withstand high temperatures and tensions.
Well casing pipes are used in the borehole to line it. Steel casing pipes are inserted in the drilled borehole and held in place with the help of cement. Well casing pipes are subjected to axial tension, which is similar to drill pipes. Rocks surrounding the casing pipes put external pressure on the pipes. The liquid flowing through the pipes put internal pressure on the pipes as well.
However, well-cemented and secured casing pipes offer several benefits. Casing pipes support the upper formation and prevent the upper formation from caving in. It aids in avoiding water contamination, contamination of production zones, and fluid loss. It facilitates the smooth installation of production equipment. Well casing pipes facilitate the sealing of high-pressure zone from the surface.
Production tubing are pipes that are placed inside casing pipes. These pipes are used to transfer oil through it. Production pipes have threaded connections on each end to protect drill pipes during the transportation and storage of oil and gas.
COVID-19 Impact
The breakout of COVID-19 affected the global oil country tubular goods market negatively. The lockdown, social distancing policies, travel restrictions, and other pandemic-related regulations resulted in the absence of labor, unavailability of raw materials, shutdown of several manufacturing facilities, halt in production, and disruption in the supply chain. Several oil and gas projects were suspended during the pandemic.
The decrease in oil and gas exploration and production activities affected the global oil country tubular goods market adversely during the pandemic. However, the relaxation in pandemic-related regulations in recent times is expected to boost the global market, owing to increasing exploration and production activities as well as technological advancements across the globe.
Oil Country Tubular Goods Market Dynamics
The global oil country tubular goods research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global oil country tubular goods market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
Major Trends:
Adoption of hydraulic fracturing technology and horizontal drilling technique
Various technologies and techniques are adopted in the oil and gas industry to improve the footage of wells drilled as well as to increase the oil rig count. Growing implementation of hydraulic fracturing technology and horizontal drilling technique are the key trends in the global market. The new technologies and techniques improve the exploration, drilling, and production operations in the industry.
Key Drivers:
Rising demand for energy production drives the global market
Surging growth in various industries such as automotive, IT & telecommunication, construction, and others increases demand for energy across the globe. Growing demand and rising energy production boost the oil and gas industry, which fuels the demand for oil country tubular goods.
Increasing drilling and production activities in the oil and gas industry
The rapid growth of the oil and gas industry leads to a rising number of drilling and production activities across the globe. The increasing demand for high-quality pipes to meet the growing number of drilling and production operations is expected to drive the global oil country tubular goods market during the forecast period.
Oil country tubular goods aid in enhancing efficiency and improving recoverability of oil and gas during the drilling and production activities. This helps the expansion of the oil country tubular goods market across the globe.
Existing Restraints:
Fluctuating crude oil prices and changing government policies
Government policies, restrictions, and regulations regarding oil and gas production, exploration activities, and redevelopment of oil and gas resource areas restrain the manufacturing activities of oil country tubular goods across the globe. Fluctuating crude oil prices affect the oil and gas industry, which hampers the growth of the oil country tubular goods market.
Emerging Opportunities:
Technological advancements in oil country tubular goods offer growth opportunities
Increasing exploration activities for new areas for oil rigs and unconventional resources demand advanced oil country tubular goods and other oilfield-related products. Extensive expansion of onshore and offshore oil and gas resources and continuous technological advancements across the globe offer lucrative opportunities to market players.
Scope of The Oil Country Tubular Goods Market Report
The global oil country tubular goods market research report includes an assessment of the market trends, market segments, and regional markets. Market overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Oil Country Tubular Goods Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Process (Electric Resistance Welded and Seamless), Grade (API Grade and Premium Grade), Product (Production Tubing, Well Casing, Drill Pipe, and Others), and Application (Offshore and Onshore)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
NOV Inc. (National Oilwell Varco); JFE Steel Corporation; Tenaris; ArcelorMittal; ILJIN STEEL CO., LTD.; NIPPON STEEL CORPORATION. (Nippon Steel and Sumitomo Metal.); United States Steel Corporation; EVRAZ plc; Oil Country Tubular Limited.; TMK; VALLOUREC; MRC Global Inc.; Jindal SAW Limited; S.B. INTERNATIONAL, INC.; Weatherford; Tenergy Equipment & Service Ltd; Schlumberger Limited.; CONTINENTAL ALLOYS & SERVICES; Anhui Tianda Group Co.,Ltd.; ISMT Ltd.; Tata Steel; BENTELER International; Centric Pipe; SPIE Oil & Services; Argus; Kelly Pipe Co. LLC; and Others
|
Oil Country Tubular Goods Market Segment Insights
Seamless segment to witness rapid growth
In terms of process, the global oil country tubular goods market is bifurcated into electric resistance welded and seamless. The seamless segment is projected to hold a significant market share during the forecast period, owing to the high adoption of the seamless process in the oil and gas industry across the globe. Oil is extruded and pulled from a billet in a seamless process. Seamless tubes or pipes offer more safety measures compared to welded pipes.
Seamless pipes are short in length than welded pipes and they do not show signs of corrosion easily. Increasing demand for a seamless process for exploration activities and redevelopment of several oil fields across the globe is estimated to spur segment growth in the coming years.
The electric resistance welded segment is estimated to register continuous progress in the coming years, as the welded pipes are more cost-effective than the other pipes such as seamless pipes. Welded pipes are easy to customize, which facilitates the expansion of the electric resistance welded pipes segment in the coming years.
API grade segment holds a key market share
On the basis of grade, the global oil country tubular goods market is divided into API grade and premium grade. The API grade segment is projected to witness rapid growth during the forecast period, as American Petroleum Institute (API) has specified certain standards according to various properties of the goods such as temperature, ductility, and thermal compatibility.
The increasing demand for goods adhering to terms specified by the American Petroleum Institute (API) spurs segment growth. The premium grade segment is anticipated to expand significantly in the coming years, owing to growing oil and gas upstream activities. Premium grade goods have wide applications such as horizontal wells, gas wells, and high-pressure & high-temperature wells.
Premium grade oil country tubular goods are used especially where gas-tight sealing is required and other complex applications. Surging developments of shale reserves and continuous exploration of natural gas are other major factors boosting the growth of the segment.
Well casing segment holds a significant market share
Based on product, the global oil country tubular goods market is segregated into production tubing, well casing, drill pipe, and others. The well casing segment is projected to hold a key market share during the forecast period, as well casing is an important component in the drilling process. Well casings are used to avoid any contamination of groundwater.
These casings facilitate stabilization in the continuous drilling operations as well as support the wall of the well. Well casings manage unconsolidated sand and rock fragments so that they do not collapse into the well shaft. Well casings are used to protect electrical wires, water tubing, and pull cables as well. These are the major factors driving the well casing segment.
The production tubing segment is anticipated to register rapid growth in the coming years, as the production tubing is primarily used to transfer oil and gas. Production tubing aids in transferring oil and gas from the primary location to the surface, which boosts the demand for production tubing across the globe.
Onshore segment registers a significant CAGR
In terms of application, the global oil country tubular goods market is bifurcated into offshore and onshore. The onshore segment is expected to register rapid growth during the forecast period, due to ease in transportation, cost-effectiveness, and availability of skilled labor. Onshore drillings are carried out for a long period of time, unlike offshore drillings.
It is easy to transport equipment related to drilling and oilfield from one place to another for onshore applications. Onshore operations are more cost-effective than offshore operations. Easy availability of the workforce and flexibility in planning are some of the factors boosting the onshore segment. The offshore segment is estimated to register steady growth in the coming years, due to the significant potential of offshore operations in recovering hydrocarbons.
The rapid expansion of the existing offshore wells such as the Gulf of Mexico, North Sea, Persian Gulf, and the South China Sea is expected to fuel the demand for offshore operations across the globe. A growing number of technological advancements and increasing demand for high production and cost reduction boosts the growth of the offshore segment.
North America to dominate the global market
On the basis of region, the global oil country tubular goods market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The oil country tubular goods market in North America is expected to register a high CAGR during the forecast period, owing to the continuous development of oil and gas fields in the region.
The US is considered a large crude oil producer. Expanding horizontal and directional shale drilling regions in the US and the liberation of the oil and gas industry in Mexico and Canada are estimated to boost the market in North America. Growing offshore drilling operations, especially in the Gulf of Mexico, fuels the growth of the market in North America.
The oil country tubular goods market in Asia Pacific is anticipated to expand in the coming years, due to increasing exploration activities in deep waters and unconventional reserves. Several market players are shifting their attention towards these continuous activities in the region that offer new business opportunities to them. Rising technological advancements that facilitate increased productivity and reduced production costs drive the oil country tubular goods market in Asia Pacific.
Segments
The global oil country tubular goods market has been segmented on the basis of
Process
- Electric Resistance Welded
- Seamless
Grade
Product
- Production Tubing
- Well Casing
- Drill Pipe
- Others
Application
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- NOV Inc. (National Oilwell Varco)
- JFE Steel Corporation
- Tenaris
- ArcelorMittal
- ILJIN STEEL CO., LTD.
- NIPPON STEEL CORPORATION. (Nippon Steel and Sumitomo Metal.)
- United States Steel Corporation
- EVRAZ plc
- Oil Country Tubular Limited.
- TMK
- VALLOUREC
- MRC Global Inc.
- Jindal SAW Limited
- S.B. INTERNATIONAL, INC.
- Weatherford
- Tenergy Equipment & Service Ltd
- Schlumberger Limited.
- CONTINENTAL ALLOYS & SERVICES
- Anhui Tianda Group Co.,Ltd.
- ISMT Ltd.
- Tata Steel
- BENTELER International
- Centric Pipe
- SPIE Oil & Services
- Argus
- Kelly Pipe Co. LLC
- Others
Competitive Landscape
Key players competing in the global oil country tubular goods market are NOV Inc. (National Oilwell Varco); JFE Steel Corporation; Tenaris; ArcelorMittal; ILJIN STEEL CO., LTD.; NIPPON STEEL CORPORATION. (Nippon Steel and Sumitomo Metal.); United States Steel Corporation; EVRAZ plc; Oil Country Tubular Limited.; TMK; VALLOUREC; MRC Global Inc.; Jindal SAW Limited; S.B. INTERNATIONAL, INC.; Weatherford; Tenergy Equipment & Service Ltd; Schlumberger Limited.; CONTINENTAL ALLOYS & SERVICES; Anhui Tianda Group Co.,Ltd.; ISMT Ltd.; Tata Steel; BENTELER International; Centric Pipe; SPIE Oil & Services; Argus; Kelly Pipe Co. LLC; and others.
Some of these major companies have adopted various business development strategies including acquisitions, mergers, collaborations, partnerships, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
- In January 2022, Jindal SAW Limited, an India-based manufacturer of cold rolled steel strips, line pipes, stainless steel seamless tubes, ball bearings, and others, partnered with Hunting Energy Services to set up the first premium oil country tubular goods plant of India. The plant is expected to act as an import substitution in the oil and gas industry. The partnership is aimed at making India self-reliant.
- In June 2019, TMK, a global supplier and manufacturer of steel pipes for the oil and gas industry, entered into a partnership with NOVATEK, which is a Russia-based natural gas producer. The agreement allows TMK to supply tubing and casing pipes to NOVATEK. The agreement outlines formula-based pricing that promotes effective production and reliable as well as timely supply of the goods.
- In March 2019, VALLOUREC, a France-based multinational manufacturing company, secured a contract with PTT Exploration & Production PLC (PTTEP) of Thailand. The contract allows the company to deliver oil country tubular goods across the country. The contract aids with delivering OCTG to challenging offshore projects in Myanmar.
Request For Customization
Enquiry Before Buying
Speak With Analyst
