DUBLIN, Dec. 10, 2015 /PRNewswire/ --
Research and Markets (http://www.researchandmarkets.com/research/h3zf5c/drill_pipe_market) has announced the addition of the "Drill Pipe Market by Application, by Grade, and by Region - Global Trends & Forecast to 2020" report to their offering.
The drill pipe market is forecasted to grow from an estimated value of USD 940.62 Million in 2015 to reach USD 1,133.80 Million by 2020 at a CAGR of 3.8%
The recent downturn in the crude oil prices has resulted in the decline of the exploration & production (E&P) activities all over the world. The spot price of the Brent crude plunged from USD 111.8/barrel in June 2014 to USD 62.3/barrel in December 2014.
This dramatic decline is being largely attributed to the over production of petroleum which has increased the oil & gas supply as compared to its demand. The largest oil and gas producing countries included Saudi Arabia, Russia, and the U.S. The low price environment has reduced the operating profits of almost all the oil & gas companies which resulted in reduced capital expenditures in 2015. This budget cut has largely affected the exploratory drilling activities mainly the offshore activities.
The oil & gas industry is cyclical in nature and is currently experiencing a downturn. The low crude oil prices have created a demand for optimizing production from existing oilfields and to operate at an economical rate. Apart from this, the low levels of E&P activity are likely to reduce the oil & gas supply in comparison to the demand in next two years which is expected to cause rise in the oil prices again. Also, new oil & gas activities are being undertaken in few regions of the world such as Africa and Latin America which are expected to be developed once the oil prices bounce back above USD 75 per barrel.
Largest application for the drill pipe market is onshore primarily due to the large number of E&P activities being carried onshore as compared to offshore. Moreover, the presence of large unconventional resources onshore in countries such as China, Argentina, Venezuela, Canada, and the U.S. has also boosted the demand for drill pipe market. On the other hand, growing E&P activities in offshore regions within countries such as Angola, Norway, and the U.S. is also one of the reasons behind the growth of the drill pipe market for offshore applications.
The drill pipe market for the API grade is projected to hold the larger market size as compared to the premium grade drill pipes. This is due to the fact that the API grade drill pipes are less expensive as compared to the premium grade drill pipes. Also, these drill pipes can easily cater to the normal drilling environment thus reducing the overall exploration and drilling costs. On the other hand, premium grade drill pipes are generally suitable for abnormal drilling conditions such as high temperature, high pressure, corrosive environments, and Arctic drilling among others. With the increase in the deepwater drilling activities, the market for premium grade drill pipe is expected to grow at a higher CAGR in comparison to that of API grade drill pipe.
North America is expected to continue to be the largest market by 2020. Asia-Pacific is the second largest market owing partly due to the shale related exploration activity in China and the offshore developments in the South China Sea region. The fastest growing market for the drill pipes is Africa which is experiencing some of the largest offshore discoveries in Angola and Tanzania.
Many international oil companies (IOCs) such as Statoil ASA (Norway), ENI SPA (Italy), and BG group (U.K.) among others have provided technical expertise in the region to explore offshore reserves more efficiently at optimum costs. Thus, the African drill pipe is forecasted to grow at a CAGR of 5.9% between 2015 and 2020.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Drill Pipe Market, By Application
7 Drill Pipe Market, By Grade
8 Drill Pipe Market, By Region
9 Competitive Landscape
10 Company Profiles
- Dp Master
- Drill Pipe International Llc
- Hilong Group
- Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd.
- National Oilwell Varco
- Oil Country Tubular Limited
- Superior Drill Pipe Manufacturing, Inc.
- Tejas Tubular Products Inc.
- Tenaris S.A.
- Texas Steel Conversion Inc.
- Tmk Group
- Vallourec S.A.
For more information visit http://www.researchandmarkets.com/research/h3zf5c/drill_pipe_market
Media Contact: Laura Wood , +353-1-481-1716, email@example.com
SOURCE Research and Markets