The global oil country tubular goods (OCTG) market size is set to reach USD 31.54 billion by 2026, owing to the rising demand for oil and gas across the globe. According to a new Fortune Business Insights™ report, titled “Oil Country Tubular Goods (OCTG) Market Size, Share & Industry Analysis, By Process (Seamless and Welded), By Product (Well Casing, Production Tubing, Drill Pipe, and Others), By Application (Onshore and Offshore) Regional Forecast, 2019-2026”, the market value stood at USD 17.92 billion in 2018 and it will register a CAGR of 7.4% from 2019 to 2026.
Growing Interest in Discovering New Reserves to Boost the Market
A rapidly rising global population has spiked the demand and consumption of conventional energy sources, mainly oil and gas. Governments across the globe are intensifying their efforts for increasing production and supply of oil to meet the ever-growing energy needs of the people. For this, they are designing supportive policies to encourage E&P activities in a bid to discover new reserves in their territories. These measures are important for countries such as India which suffer from high oil import bills, putting them at a disadvantageous position on the world stage. Thus, rising focus on finding new reserves at unconventional locations will be one of the prominent oil country tubular goods market trends in the forecast period.
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- By Process: Based on process, the market is divided into seamless and welded. Here, the seamless segment is expected to lead as seamless pipes are generally given preference over their welded counterparts. Seamless pipes are more resilient as they are able to work even under extremely high pressure without cracking or getting damaged in any way. The welded segment will also grow promisingly as these pipes are more cost-effective.
- By Product: On the basis of product, the market is segmented into well casing, production tubing, drill pipe, and others. Amongst these, the well casing segment is projected to lead with a share of 50.5% as it is a critical component in drilling activities. This process helps to avoid contamination of groundwater and provides overall stability to the entire drilling operation. Apart from this, the casing also supports the well wall which protects the well shaft from disintegrating rocks and soil that may collapse into the shaft. The other segments will also enjoy a period of healthy, according to the OCTG market analysis.
- By Application: In terms of application, the market is segregated into onshore and offshore. Here, the onshore segment will gain prominence owing to the ease of operation offered by onshore drilling. Furthermore, onshore drilling is cheaper than offshore drilling and is also known to produce higher volumes of hydrocarbons. Thus, increasing onshore operations will uplift the OCTG market outlook.
- By Region: Geographically, the market is grouped into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. The OCTG market size in North America was at USD 7.72 billion in 2018, giving the region the necessary might to dictate the OCTG market share during the forecast period. The main reason for North America’s commanding position is the discovery of shale gas and the favorable policies of the governments promoting E&P activities in the region. The other regions are also anticipated to grow at a healthy rate.
Competition to be Monopolized by a Few Dominant Players
Competition in this market is expected to be characterized by the presence of a few dominant players that are looking to entrench their position through contractual agreements and acquisitions. Some of the key players covered in the OCTG market report include:
- ILJIN Steel Co., Ltd.
- Tenergy Equipment & Service Ltd.
- JFE Steel Corporation
- National Oilwell Varco
- EVRAZ North America
- SB International, Inc.
- Sumitomo Corporation
- United States Steel Corporation
- March 2019: Tenaris signed a watertight USD 1,209 million agreement with Russia-based PAO TMK to acquire the latter’s IPSCO tubular.
- March 2019: Thailand's national oil company PTTEP awarded a contract to France-based Vallourec for the delivery of 3,000 tons of OCTG for Thailand’s Myanmar exploration project.
The Global Oil Country Tubular Goods Market is Segmented as Follows:
Value (USD Billion)
- Well Casing
- Production Tubing
- Drill Pipe
- North America (U.S. and Canada)
- Latin America (Brazil, Mexico, Argentina, Venezuela, and Rest of Latin America)
- Europe (UK, Germany, Norway, Russia, and Rest of Europe)
- Asia-Pacific (China, India, Indonesia, Thailand, Australia, and Rest of Asia-Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Oman, Kuwait, Algeria, Angola, Egypt, and Rest of Middle East & Africa)