According to Market Research Future (MRFR), the global Oil Country Tubular Goods (OCTG) market is estimated to reach USD 43 billion, with a CAGR of 7.14% from 2018 to 2023 (forecast period). The study identifies and examines the effect of the outbreak of COVID-19 on the global OCTG market, including possible opportunities and challenges, drivers, and threats.
OCTG (Oil Country Tubular Goods) are the components used in the production of oil and gas from the well. Proper use of OTCG will help minimize the probability of mishaps, hazards, and risks that eventually save the company's production cost. It includes casing, drill pipe, tubing, etc.
Market Dynamics
The oil and gas field are capital intensive. It, therefore, requires maintaining the balance in the production of crude oil and gas in order to avoid any loss of money, machinery, and resources. This propels the global OCTG market. The global market for OCTG is very lucrative. Reservoir contracts are improving to sustain in the market, while technical advances and innovative tools could help the market grow. It is motivated by an increase in oil and gas production activities, an exponential increase in shale gas reserves, and an increase in investment in the upstream sector by operators. The OCTG market is expected to expand further due to a rise in offshore activities.
Economic growth is the primary concern of any developing nation, and the rise in production activities will contribute to the fulfillment of the demand for natural resources. This will increase the development and exploration activities in the oil and gas industry, which will ultimately lead to the global OCTG market's growth. China is also growing its drilling and production activities to boost the economy. As drilling activities increase, there will be an increase in the manufacture of tools related to drilling activity, especially for the service providers.
Key Players
The industry giants in the global OCTG market are Nippon Steel & Sumitomo Metal Co. (Japan), TMK (U.S.), Vallourec (France), Tenaris (Europe), National Oilwell Varco (U.S.), Steel Tubular Products Inc (NA)., Continental Alloys (Malaysia), ILJIN STEEL CO (S. Korea), Anhui Tianda Oil Pipe Company (China).
Market Segmentation
The global OCTG market is further segmented based on type, make, and grade.
Based on type, the segments are tubing, casing, and drill pipe. Tubing is the inner wall of the well, which helps transport the fluid from bottom to top. The casing protects the soil layer, groundwater contamination by drill mud or fracking fluid. Drill pipes are long-lasting steel pipes that conduct the force to drill bits.
Based on make, the segments include welding or seamless. In make segment, the seamless pipe would lead the market due to its mechanical properties like tensile strength and pressure handling ability in offshore drilling, which ensure operational efficiency.
Based on grade, the segments include premium and API, which are the grades of steel pipe that require based on their properties like ductility, temperature, and thermal compatibility.
Regional Analysis
The global OTCG market has been segmented by region into North America, Europe, Asia Pacific, Middle East, and Latin America.
The oil industry is seeking to increase its rig count in regions such as North America and the Asia Pacific and eventually accelerate the production in wells. Regionally, North America has been the fastest-growing market in the last decade and is likely to rise further. Countries like the U.S. and China are also in line to boost production and OCTG markets. In particular, in the United States, the rig count increased by 135 compared to the previous year owned by Baker Hughes. In the Asia Pacific, the rig count in Australia increased by 15; the rig count in the Asia Pacific increased by 12%. Some of the potential reasons for this increase are the proper implementation of the technology, lateral drilling activities, less time usage in well-pipe installations, and the operator's technicality to drill as quickly and efficiently as possible.
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