Oil Country Tubular Goods (OCTG) Market By Manufacturing Process (Electric Resistance Welded (ERW), and Seamless). By Product (Well Casing, Product tubing, Drill Pipe, Others (Line Pipe)). By Application (Onshore, and Offshore). By Grade (API Grade, and Premium Grade)

Oil Country Tubular Goods (OCTG) Market Overview

 High exploration and production activities, expansion in proved shale reserves, and increasing investments from oil and gas producers are driving demand in the oil country tubular products market. Oil Country Tubular Goods are a type of tubular product that is exposed to loading conditions based on its particular usages, such as drill pipe, casing, line pipe, and tubing. Tubular components used in the oil industry are used in onshore and offshore exploration and extraction installations.
More exploration and production activities, low oil breakeven prices due to rising non-oil income and technology improvements, lower oil service costs, and increased directional drilling are major factors driving the market analysis. The global oil country tubular products market is likely to expand fast over the forecast period due to increased drilling and production operations. Demand for high-end pipes is increasing, as the development of technologically advanced pipes will drive the market further. Efficiency improvements and advancements in well-drilling technology to improve the recoverability of oil and gas resources are also crucial to industry growth. An increase in rig count, which is accompanied by an increase in the number of wells drilled, is an important trend in the Oil Country Tubular Goods market. Furthermore, the expansion of hydraulic fracturing technology and horizontal drilling is predicted to significantly accelerate industry growth.

Market Size

According to Business Intelligence Insights "Oil Country Tubular Goods (OCTG) Market is expected to grow from USD 18.7 billion  in 2021 to USD 32.6 billion by 2027, at a CAGR of 7.2% during the forecast period 2021-2030
 

Covid -19 Impact Analysis

The COVID-19 outbreak was caused by severe disruptions in raw material transportation and the presence of low labor, which resulted in the shutdown of numerous manufacturing businesses and a fall in demand power. Crude oil prices fell in April 2020 due to low oil demand caused by many restrictions imposed as a result of the epidemic. Many countries, including Japan, Malaysia, South Korea, Indonesia, and India, have been shut down for extended periods of time, affecting international trade. As a result, demand for Oil Country Tubular Goods fell during this time period.
Positive signals of market recovery have been seen in 2021, with better years ahead. However, due to the countries' economic recovery, the market has shown signs of a resurgence since early 2021. Crude oil prices are likely to be more volatile during 2022. Crude oil may potentially reach $200 per barrel this year. The number of new and backlogged oil and gas drilling projects is projected to increase in the near future. This is projected to fuel the worldwide tubular goods industry in oil-producing countries.

Market Dynamics

•    Drivers
o    Increased drilling and production activities, as well as the introduction of technologically superior pipes
o    Global offshore rig count and resource exploration are increasing.

•    Restraints
o    Price volatility in international crude oil
o    Import duties on oil-country tubular items have been raised.

Segmentation Insights

By Manufacturing Process 

Seamless Segment dominated the market with more than 59.1% of the market share

Materials used in the drilling, outfitting, and operation of oil and gas wells include threaded drill pipes, casing, and tubing. The large proportion of the category could be attributed to the growing need for better and more dependable items in the oil and gas industry. When compared to welded counterparts, seamless OCTG products can withstand higher pressures, temperatures, mechanical stress, and corrosive conditions, which explains their increased demand in the oil country tubular goods industry

 

By Grade 

API Grade category dominated the market with more than 69.9% of the market share

Globally, the majority of oil and gas businesses favor API grades, which are less expensive than premium grades. However, as expenditures in offshore E&P grow, the majority of upstream oil and gas operators are migrating toward premium grades of OCTG products. As a result, proprietary grade OCTG is highly valued in the offshore oil and gas business. As a result, premium-grade OCTG sales are likely to increase in the coming years.

By Manufacturing Process 
•    Electric Resistance Welded (ERW) 
•    Seamless 

By Product 
•    Well Casing 
•    Product tubing 
•    Drill Pipe 
•    Others (Line Pipe) 

By Application 
•    Onshore 
•    Offshore 

By Grade 
•    API Grade 
•    Premium Grade

By Region
•    North America
o    U.S.
o    Canada
•    Europe 
o    Germany
o    U.K.
o    France
o    Italy
o    Spain
o    Rest of Europe
•    The Asia Pacific 
o    China
o    India
o    Japan
o    Rest of Asia Pacific
•    Latin America 
o    Brazil
o    Mexico
o    Rest of Latin America
•    The Middle East and Africa 
o    UAE
o    South Africa
o    Rest of the Middle East and Africa (MEA)

Key Players

List of Key Players in the Global Oil Country Tubular Goods (OCTG) Market:

•    ARCELORMITTAL SA
•    EVRAZ NORTH AMERICA PLC
•    ILJIN STEEL CORPORATION
•    JFE STEEL CORPORATION
•    NOV INC.
•    OIL COUNTRY TUBULAR LIMITED
•    SUMITOMO CORPORATION
•    TENARIS, TMK INC.
•    U.S. STEEL CORPORATION
 

Regional Insights

North America dominated the market with more than 41.9% of the market share

The broad expansion of oil and gas reserves in the North American region, both onshore and offshore, would most certainly present significant economic prospects for OCTG firms. Additionally, because oil and gas activities directly affect OCTG demand, increased oil and gas exploration and production operations in the region are likely to raise OCTG demand in the future years. Shale drilling and hydraulic fracturing operations in the United States have increased the use of horizontal and directional drilling activities, adding thousands of feet in the lateral run to previously vertical-only drill strings. Furthermore, according to the Canadian Association of Petroleum Producers (CAPP), investment in new oil and gas projects in Canada is predicted to rise in 2022. As a result of the foregoing, North America is likely to dminate the worldwide oil country tubular products market during the forecast period

Table

Report Attributes	Details
Market Size Value in 2021	USD 18.7 billion
Market Size Value in 2027	USD 32.6 billion
Growth Rate	+7.2%
Base Year	2021
Forecast Period	2021-2030
Historical Data	2018-2020
Forecast Units	(USD Billion)
Countries Covered	North America: U.S and Canada Europe: Germany, France, Italy, U.K, Spain, Russia, Rest of Europe APAC: China, Japan, South Korea, India, Australia, South East Asia, Rest of Asia Pacific Latin America: Brazil, Mexico Middle East And Africa: Saudi Arab, South Africa, UAE
Segments Covered	By Manufacturing Process, By Application, By Grade, By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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