The North
America Oil Country Tubular Goods market is anticipated to grow robustly during
the forecast period, 2024-2028. Increased investment in the upstream sector,
had led to a rise in the number of rig charter operations, as well as the
number of wells drilled and produced, leading to growing demands for OCTG (Oil
Country Tubular Goods) market in the region. As production operations in the
oil and gas sector are rising, the prospects for oil country tubular goods are
quite favorable. Owing to the increased energy demand, more exploration
activities and expenditures are required, which is further fueling the
industry's need for OCTG products. For instance, in 2021, North America's oil
production was 23.9 million barrels per day, up from 23.5 million barrels per
day the prior year. Numbers grew by nearly 10,000 barrels per day between 1998
and 2021. Since crude oil production rate is rising in the region, the North
America Oil Country Tubular Goods market is expected to register a high CAGR
during the forecast period.
Industry's
expanding crude oil production operations
Oil country
tubular goods (OCTG) are a group of seamless rolled items that include drill
pipe, casing, and tubing that are subjected to loading conditions unique to
their purpose.
Furthermore,
the extensive expansion of onshore and offshore oil and gas resources in the
area is expected to create significant business for the OCTG market throughout
the research period. Nevertheless, variable crude oil prices and increasing
import duties in the United States are projected to limit North American market
development. Owing to the industry's expanding production operations, the
prospects for oil country tubular products are impressive. The high energy
demand has increased the requirement for exploratory activities and
investments, which is further driving the industry's need for OCTG products.
Rise crude
oil output in Gulf of Mexico (GOM)
Owing to the
increased focus on the exploitation of deep water and offshore reserves, such as
those in the Gulf of Mexico, premium-grade OCTG products are expected to
dominate the market. Premium grade OCTG materials are required in harsher and
more difficult upstream operations. Additionally, liberalization of the oil and
gas sector in Canada and the Gulf of Mexico in order to promote foreign
investment and therefore assist in developing the oil and gas industry is
anticipated to give an opportunity for the region's OCTG market. After being
stopped due to the pandemic in 2020, US oil output is gradually returning to pre-pandemic
levels. Although it is not yet completely there, the EIA has identified several
particular projects that will assist sustain production levels in the Gulf of
Mexico. For instance, over the next two years, the US Energy Information
Administration (EIA) forecasts a rise in crude oil output in the US Federal
Gulf of Mexico (GOM). Additionally, by the end of 2022, 13 new projects might
produce around 200,000 barrels per day (b/d), or about 12% of the entire Gulf
of Mexico crude oil output. This would result in a large increase in the demand
for high-grade oil country tubular products throughout the forecast period.
Chevron is
building the Ballymore tieback to the Blind Faith platform (deep water
development) in the deep water Gulf of Mexico. The project, which consists of
three production wells connected by a single flow line to the adjoining Blind
Faith plant, has a design capacity of 75,000 barrels of crude oil per day.
Williams company will offer offshore natural gas collecting and crude oil
transportation services, as well as onshore natural gas processing services for
the output, using existing connections to Blind Faith. Chevron owns a 60% stake
in the Ballymore project.
US Shale
Drilling Projects in Region
The United
States is a major producer and consumer of oil; however, the nature of the
resource requires that it be traded on a global scale. The density and sulfur
concentration of crude oil differ by geography, and the crude should be matched
to a refinery capable of processing the crude based on those factors. As a
result, crude oil is purchased and sold all over the world. At 0111 GMT, US
West Texas Intermediate (WTI) oil futures were up 16 cents, or 0.2%, to USD
67.58 a barrel, reversing a 1.4% loss On February 2023. WTI is on track for a
weekly increase of more than 8%, the most since early February. As of 2019, the
United States was the world's greatest crude oil producer. Throughout the last
decade, the United States' shale drilling areas have increased their
utilization of horizontal and directional drilling activities, further
propelling the country's OCTG industry.
Operators in
the Marcellus-Utica plays important role as United States boosted natural gas
activity. Despite a drop in gas prices in the second half of 2022, Pennsylvania
increased rig utilization by 30% to an average of 24 rigs in 2022, while West
Virginia and Ohio increased rig utilization by 30% and 21% respectively.
Even though,
with a few exceptions, the ratio of rigs drilling for gas over those drilling
for petroleum remained essentially stable in 2022. In January, around 82% of
rigs were drilling for oil, while 18% were drilling for gas. The week of
September 9 saw a 22% increase in gas drilling rigs. By December, the
proportion of rigs looking for gas had dropped down to around 20%.
US Steel
Tubular Products' Oil Country Tubular Goods (OCTG) are widely utilized in the
global oil and gas sector. A sophisticated array of premium and semi-premium
connections has been developed specifically for today's demanding oil and gas
environment, including drilling conditions experienced in shale plays and other
long reach drilling applications, owing to which market is expected to register
a high CAGR in the forecast period.
Premium
Grade Adoption
The usage of
high-end drilling equipment has increased as a result of the rise in deep-water
exploration in isolated regions with harsh environments, which has led to
market expansion. One of the biggest offshore deep-water reserves, the Gulf of
Mexico, is expected to witness an increase in production during the projected
period. Since 1953, the United States has been a net energy importer. However,
with the widespread use of hydraulic fracturing technology and the shale
revolution, the country is on course to become a net energy exporter by 2022.
Furthermore,
the rapid growth of shale reserves is giving natural gas exploration a major
boost. Also, the extraction of natural gas from shale formations has been made
possible by horizontal directional drilling, which has had a significant
positive impact on the market for premium grade OCTG. Offshore oil and gas
deposits are being exploited and examined, and as a result, there is a demand
for high-grade transportation tubes that can resist corrosion, operate
leak-proof, and maintain the integrity of the connections even when loaded,
bent, and exposed to high internal pressure. It is anticipated that there will
be numerous potentials for the Oil Country Tubular Goods market to expand due
to the demand for premium tubing to transfer oil and gas from onshore and
offshore fields to the consumer's location.
High startup
cost and low skilled Labor
The Energy
Information Administration (EIA) estimates that, roughly 68% of all-natural gas
and oil wells developed in the United States were hydraulically fractured
wells. In the global oil country tubular goods market, a lack of qualified
workforce and high startup costs might be a barrier.
Recent
Developments
- Since 1953, the United States has
been a net energy importer. However, with the widespread use of hydraulic
fracturing technology and the shale revolution, the country is on course
to become a net energy exporter by 2022.
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Market
Segmentation
The North
America Oil Country Tubular Goods Market is segmented based on manufacturing
process, grade, product, and application. Based on the manufacturing process
the market is segmented into electric resistance welded and seamless. Based on
grade, the market is segmented into API Grade, and Premium Grade. Based on
product, the market is divided into well casing, production tubing, drill pipe,
and others. Based on application, the market is further bifurcated into onshore
and offshore. Based on country, the market is divided into United States,
Canada, and Mexico.
Market
player
Major players
operating in the North America Oil Country Tubular Goods market are
ArcelorMittal SA, ILJIN Steel Co, National-Oilwell Varco Inc, Nippon Steel
Corporation, Tenaris SA, TMK PAO, TPCO Enterprise Inc, U.S. Steel Tubular
Products Inc, and Vallourec SA.
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Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
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2018–
2021
|
|
Estimated Year
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2023
|
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Forecast Period
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2024
– 2028
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Quantitative Units
|
Revenue in USD Million, value, and CAGR for 2018 -2022 and 2023
– 2028
|
|
Report coverage
|
Revenue
forecast, Company Share, growth factors, and trends
|
|
Segments covered
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Manufacturing Process
Grade
Product
Application
Country
|
|
Regional scope
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North
America
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|
Country scope
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United States, Canada, Mexico
|
|
Key companies profiled
|
ArcelorMittal SA, ILJIN Steel Co, National-Oilwell
Varco Inc, Nippon Steel Corporation, Tenaris SA, TMK PAO, TPCO Enterprise Inc,
U.S. Steel Tubular Products Inc, Vallourec SA
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|
Customization scope
|
10% free report customization with
purchase. Addition or alteration to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized
purchase options to meet your exact research needs. Explore purchase
options
|
|
Delivery Format
|
PDF and Excel through Email (We can also provide
the editable version of the report in PPT/Word format on special request)
|
Report
Scope:
In this report,
North America Oil Country Tubular Goods Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- North America Oil Country Tubular
Goods Market, By Manufacturing Process:
- Electric Resistance Welded
- Seamless
- North America Oil Country Tubular
Goods Market, By Grade:
- North America Oil Country Tubular
Goods Market, By Product:
- Well Casing
- Production Tubing
- Drill Pipe
- Others
- North America Oil Country Tubular
Goods Market, By Application:
- North America Country Tubular Goods
Market, By Country:
- United States
- Canada
- Mexico
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the North America Oil Country
Tubular Goods Market.
Available
Customizations:
With the given
market data, TechSci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
The North
America Oil Country Tubular Goods Market is an upcoming report to be released
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of release, please contact us at
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