OCTG (Oil Country Tubular Goods) Market Scenario:
OCTG, aka Oil Country Tubular Goods, is used as a key
component for the production of oil and gas from the well. The precise usage of
OCTG can aid in curbing down the probabilities of any eventual hazard, mishap,
and risks, thereby eventually saving the production cost of the company.
The global OCTG market is expected to attain a decent CAGR of 7.14%
during the forecast period. The report published by Market Research Future
(MRFR), also reveals that the market valuation is slated to reach a striking
USD 43 billion by the end of the forecast period in 2023. With the oil and gas
industry being capital intensive, it is imperative for the sector to maintain
the balance in the production of crude oil and gas to dodge any instances of
losing machinery, money, and resources. This subsequently drives the global OCTG
Market. A detailed
analysis report of COVID-19
impact on Global OCTG Market is provided with the report.
It is also reported that reservoir contracts are
improving to stand tall in the market, whereas advancements in technology and
development of innovative tools are expected to evolve the market. The market
is driven by the increment in oil and gas production activities, rising
investment in upstream sector by the operators, and exponential growth in shale
gas reserves. The market is further calculated to be driven due to the surge in
offshore activities. Additionally, it has been noticed that the oil industry is
trying to expand its rig count across regions such Asia Pacific and North
America. This is expected to help ameliorate the production in wells and expand
the global OCTG market footprints.
Market Segmentation
The global OCTG market segmentation is done on the
basis of type, grade, and make.
By type, the market includes drill pipe, tubing, and
casing. Casing helps protect groundwater contamination by drill mud or fracking
fluid, and the layer of the soil. Tubing helps migrate the fluid from the
bottom to the top. It is the inner wall of the well. And, drill pipes are steel
pipes that are durable enough to conduct the force to drill bits.
By make, the market divides into seamless and welding.
The market is dominated by seamless pipes in this segment owing to its
unmatched mechanical properties like pressure handling capability in offshore
drilling and high tensile strength. The operational efficiency it offers is
expected to maintain its standing as the dominant segment in the market.
By grade, the market comprises premium and API.
Regional Analysis
The global OCTG market is regionally segmented into
the following regions: North America, Europe, Asia Pacific, Middle East and
Africa, and Latin America.
The global market is led by North America, which for
the last decade or so has maintained its standing as the highest growing
market. The region is expected to grow further during the forecast period. In
North America, the US holds a majority of the market share is expected to be
one of the global leaders of OCTG by the end of the forecast period. The US rig
count has strikingly increases by 135 from last year.
Amidst the dominance of North America, the market is
expected to be propelled over by Asia Pacific during the forecast period. The
reason being the same is the proper application and usage of technology, less
consumption of time in well-pipe installation, lateral drilling activities, and
the requisite technicality of an operation to drill the well with optimal speed
and efficiency. The Asia Pacific region is a notable and lucrative market for
OCTG. It boasts massive potential and opportunities for market players, if
tapped properly. China is identified as the major driver of the market here.
Also, within Asia Pacific, the rig count in Australia is reported to have
increased by 15% from last year, thereby aiding in increasing the rig count of
the region by 12%
Competitive Landscape
Some of the leading players in the global OCTG market
are Vallourec (France), TMK (U.S.), Tenaris(Europe), Nippon Steel &
Sumitomo Metal Co. (Japan), Steel Tubular Products Inc (NA)., Continental
Alloys (Malaysia), Anhui Tianda Oil Pipe Company (China), National Oilwell
Varco (U.S.), Iljin Steel Co (S. Korea), and others.
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