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OCTG manufacture and OCTG market outlook

What is OCTG?

what is OCTGOil country tubular goods (OCTG) are hollow steel products of circular cross-section used in the oil and gas industry for exploration and production activities. Most of OCTG is seamless pipes, but welded pipes are also accounted for considerable proportion.

OCTG manufacture, including tubing, casing, drill pipe, sucker rod, line pipe and so on. The appropriate selection of OCTG can reduce the chances of any hazard, minimize risk, and also save cost.

OCTG Market

The demand for OCTG is driven by high exploration and production activities, growth in the proven shale reserves, and escalating investments from the oil and gas operators. The trend is set to continue with the current surge in offshore activities and shale reserve exploratory activities. The global OCTG market is thereby expected to grow to approximately $59 billion by 2019, at a CAGR of more than 7% from 2014 to 2019.

The OCTG market is segmented in six regions, namely North America, South America, Europe, Africa, Asia-Pacific, and the Middle East. The OCTG market is further segmented on the basis of major countries in the region.

Geographically, Asia-Pacific and North America are the largest manufacture which have grown rapidly in the past decade. In Asia-Pacific, China is the largest market which will continue to dominate the OCTG industry. North America follows the Asia-Pacific market with U.S. being the most influential player due to activities in abundant shale reserves. These regions are likely to continue to dominate in future. The South-American market will witness the highest growth rate; Europe and Africa will also develop with a decent CAGR.

Global OCTG market outlook

The key factors which are anticipated to drive the OCTG market include rising global demand for oil and gas, growth in crude oil prices, economic growth and lack of alternative sources of energy. Some of the noteworthy developments of this industry include global rig count growth, increasing global E&P spending, and the seamless pipe manufacture, among others.

OCTG market outlook

Oil country tubular goods are required throughout the lifecycle of an oil and gas well. The ever-increasing exploration and production activities across the globe and new areas of unconventional resources are the main drivers for the growth of the OCTG market. With competition growing vigorous and increase in concern for environmental safety, the market will witness a higher growth rate in the demand for premium product type such as OCTG manufacture.

The demand for OCTG products is stimulated by increased drilling of deep, horizontal and offshore wells. In 2012, despite of sluggish growth in most of the regions across the globe, the global offshore drilling manufacture registered a growth of 12.5%. Therefore, it is anticipated that improved deepwater exploration in the OCTG market and increasing demand for premium products will provide structural competitive advantage to key players in the near future. Furthermore, the future prospects of global OCTG market seem favorable mainly on account of increasing crude oil production and oil revenue which will help in building a sustainable business environment.

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