Escalating Investment in Offshore Drilling Boosts Oil Country Tubular Goods (OCTG) Market Growth at 6.75% CAGR

DUBLIN, Nov. 10, 2023 /PRNewswire/ -- The "Global Oil Country Tubular Good (OCTG) Market (by Process, Grade, Application, Product, Demand, Production, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)" report has been added to ResearchAndMarkets.com's offering.

The global Oil Country Tubular Goods (OCTG) market is on track to reach a market value of US$24.50 billion by 2023, demonstrating a robust Compound Annual Growth Rate (CAGR) of 6.75% during the projected period. OCTG products include casing, drill pipe, and tubing, catering to various loading requirements depending on their application. The market's growth is attributed to the increasing demand for hydrocarbons in industries such as power generation, manufacturing, process, and transportation.

Understanding OCTG

OCTG products are solid rolled items essential in the oil and gas industry for casing, tubing, and drilling applications. The surge in hydrocarbon demand has led to an uptick in exploration and production operations, driving the demand for OCTG products.

Market Segmentation

The global OCTG market is segmented as follows:

1. Process: The market is divided into two segments: Seamless and Welded. The seamless segment dominates the OCTG market due to its corrosion resistance and suitability for various applications, particularly in off-shore areas.
2. Grade: Segmented into Premium and API grades, the premium grade segment leads the market. Premium-grade OCTG is in demand for its ability to withstand corrosion, provide leak-proof operations, and maintain sealing integrity under various conditions.
3. Application: The market is bifurcated into Onshore and Offshore. Onshore OCTG is anticipated to experience faster growth, mainly used in drilling and production operations closer to the shore. It is cost-effective and readily available.
4. Product: The market identifies four segments: Well Casing, Production Tubing, Drill Pipe, and Others. Well casing, used in drilling processes and as a foundation for drilling deeper, is expected to witness significant growth.

Geographic Insights

The global OCTG market comprises five regions: North America, Asia Pacific, Europe, Middle East & Africa, and Latin America. North America holds the largest share, with the United States being a major oil and gas producer. Asia Pacific is set to expand significantly, driven by the growing energy demand in countries like China and India.

Drivers: Growing Oil Demand

Increasing global oil demand is a primary driver of the OCTG market. As the global economy expands, the demand for oil and gas as essential energy sources for transportation, power generation, and industrial production grows. Consequently, more oil and gas wells are drilled, leading to higher OCTG product demand.

Challenges: Increasing OCTG Prices in the US

Rising prices for OCTG products in the United States pose challenges to the OCTG market. The steel and metal industry, including OCTG production, is sensitive to supply-demand fluctuations and raw material price changes. Higher prices can deter domestic demand, prompting customers to explore alternative materials or foreign suppliers offering lower prices, which may lead to reduced market share for domestic producers.

Trend: Escalating Investment in Offshore Drilling Activities

Investments in offshore drilling activities are increasing due to the depletion of onshore reserves and growing demand for energy. Offshore drilling offers a solution to meet energy demands and technological advancements, contributing to the rising OCTG market.

COVID-19 Impact

The COVID-19 pandemic had a negative impact on the OCTG market, causing a drop in the rig count and reduced oil and gas exploration and production activities. Supply chain disruptions and lower demand for tubular and casting products affected the market. However, as the world emerges from the pandemic, increased exploration activities and a long-term demand for energy are expected to drive OCTG demand.

Key Players

The global OCTG market is characterized by consolidation and competition. Key players in the market include ArcelorMittal S.A., JFE Holdings Inc., Tenaris S.A., MRC Global Inc., EVRAZ PLC, NOV Inc., Nippon Steel Corp, United States Steel Corporation, Vallourec S.A., ILJIN Steel Co., Ltd., PAO TMK, Canam Pipe & Supply, and J-Hobbs Machine Corp.

Top Impacting Factors

Growth Drivers

• Growing Oil Demand
• Rising Energy Consumption
• Growth in Hydraulic Fracturing Activities
• Technological Innovation in Drilling Techniques

Challenges

• Increasing OCTG Prices in the US
• Environmental Issues

Trends

• Escalating Investment in Offshore Drilling Activities
• Increasing R&D Spending in Energy Sector
• Rise in Horizontal Directional Drilling for Oil & Gas Excavations
• Easing Trade Restrictions in North America

For more information about this report visit https://www.researchandmarkets.com/r/3ijipz

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