Global Seamless Pipes and Tubes Market 2020-2027 - Unconventional and Deep Water to Buoy Growth Opportunities
DUBLIN, Dec. 3, 2020 /PRNewswire/ -- The "Seamless Pipes and Tubes - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
The Asphyxiated Oil & Gas Industry Cuts Off US$25 Billion in Revenues for Seamless Pipes & Tubes
The global market for Seamless Pipes & Tubes is expected to slump by -13.7% in the year 2020 highlighting a US$25.1 billion erosion in market value. Thereafter the market is expected to recover and reach US$230.3 billion by the year 2027 trailing a post-COVID-19 CAGR of 5.6% over the analysis period 2020 to 2027.
The COVID-19 pandemic is a rolling disaster, rapidly spreading and decimating industries and markets across the world. Petroleum refining, oil & gas exploration, chemical production, construction, manufacturing, infrastructure, industrial processing have all been alike impacted. The economic recession, rising unemployment, falling consumer spending, plummeting business confidence & investments have begun to bleed into these industries.
The shattered oil & gas industry is facing its worst ever crisis, an overstocked supply market and a steep decline in demand. Choking economic activity over the last few months is sending shockwaves of disruption through the industry. From prices dipping to subzero to oil producers in the first time in history having to pay to dispose excess stocks, the industry has seen the worst. In this crisis of unimagined magnitude, CAPEX spending is worst hit. As business confidence plummets rapidly, major oil companies have already slashed planned CAPEX spending by almost US$89 billion in 1st quarter 2020.
Travel bans, manufacturing shutdown of all non-essential plants, closure of offices have wielded the most severe demand shock. A mistimed price war between Russia and Saudi Arabia following Russia`s decision to pull out of a joint production cut agreement additionally aggravated the demand supply imbalance. China in early February during the heat of the pandemic banned entry of oil tankers while tightening the lockdown measures. OPEC talks to cut back on production failed as Russia refused to cooperate. Saudi Arabia during this period offered US$6 to US$9 discount per barrel for European, Asian, and U.S customers.
Currently for most oil giants worldwide higher prices are needed to breakeven. Breakeven prices for Saudi Arabia, UAE, Iraq, Azerbaijan, Kuwait, Kazakhstan, and Russia include US$85, US$65, US$64, US$51, US$49, US$42, and US$40 respectively. As a culmination of these factors, the world witnessed negative oil prices become a shocking reality. As rising stockpiles overwhelmed storage facilities, the amount of oil stored on massive tankers on sea skyrocketed to over 160 million barrels in April 2020 as compared to the less than 100 million in April 2009 during the Great Recession.
The entire O&G value chain is feeling the pain as upstream, midstream and downstream operations collapse under a domino effect. Against this backdrop, seamless pipes and tubes is already showing signs of slumping in the year 2020 as piped soil transport and distribution projects gets thrown into the backburner.
The market will nevertheless bounce back as the economies reopen and economic activity picks up momentum. Post COVID-19 recovery will be driven by recovery in exploration and production activity and strengthening oil prices and the resulting sustained growth in demand for high-grade Oil Country Tubular Goods (OCTG).
Improved infrastructure spending, expanding manufacturing and industrial sectors in developing countries will help drive demand recovery for seamless pipes and tubes in industrial boilers, while growing energy investments worldwide will drive gains for seamless tubes in utility boilers. In the oil and gas sector, increased migration of drilling activity to deeper reserves and the continuous shift towards directional drilling projects will spur opportunities for growth over the long term period.
Benefits of seamless pipes and tubes responsible for driving their adoption over and above their conventional welded counterparts include higher pressure rating, higher strength and durability around the circumference of the pipe, uniformity of shape, reduced risk of leaks and pipe failure, resistance to harsh cold and hot environment, superior corrosion resistance, and reduced project costs especially in oil rigs, offshore drilling, pipelines, and machinery production, among others.
In the coming years, ultrahigh-strength seamless tubes will increase in commercial value in applications such as construction machinery especially against the backdrop of weight reduction and fuel and energy optimization. Asia-Pacific will remain a major market supported by large automobile, industrial and construction markets. In the United States, growth will be led by the country`s policy led support for shale oil production as evidenced by proposed plans of the government, in the pre-crisis period, to open up hitherto protected offshore territory to oil and gas drilling.
Competitors identified in this market include, among others:
- ArcelorMittal SA
- ChelPipe
- EVRAZ North America
- JFE Steel Corporation
- Jindal SAW Ltd.
- Maharashtra Seamless Limited
- Nippon Steel & Sumitomo Metal Corporation
- Techint Group SpA
- Tenaris S.A.
- TenarisSiderca (Siderca S.A.I.C.)
- Tianjin Pipe (Group) Corporation
- TMK Group
- TMK IPSCO
- UMW Group
- United States Steel Corporation
- Vallourec & Mannesmann Tubes
- Vallourec Star LP
- Wheatland Tube Company
Key Topics Covered:
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
- Impact of COVID-19 and a Looming Global Recession
- COVID-19 Throws New Set of Challenges for Oil & Gas Industry
- Global E&P Industry Revenues Set to Nosedive Remarkably amidst COVID-19 Pandemic
- Seamless Pipes & Tubes: An Introduction
- A Glance at the Production Process
- Types of Seamless Pipes and Tubes
- Key End-Use Markets
- Market Outlook
- Unconventional and Deep Water to Buoy Growth Opportunities
- Seamless Pipes Production Scenario
- Competitive Landscape
- Recent Market Activity
- World Brands
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
- Trends in Rig Counts and Drilling activity set the Dynamics of Seamless OCTG Pipes
- Unconventional Oil & Gas Resources Trigger Demand for High Grade OCTG Products
- Deep Water Drilling Widens Opportunities
- Tough Operating Environments Drive Demand for High Quality Line Pipes
- Horizontal Drilling Benefits Demand
- Machinery Sector: An Important Market for Seamless Tubes
- High Performance Steel Grades Gain Importance in Machinery
- Seamless Pipes Aids Automotive Industry to Address Regulatory Compliance Challenges
- Power Generation: An Expanding Market for Seamless Pipes
- Seamless Tubes in Industrial Boilers
- COVID-19 Pandemic Curtails Electricity Demand, Causing Distress for Power Utilities
- Seamless Tubes in Utility Boilers
- Seamless pipes Gain Strength in Load Bearing Applications in the Construction Sector
- COVID-19 Derails Momentum in the Construction Sector
- Infrastructure Needs Fuel Demand for High Strength Tubes
III. MARKET ANALYSIS
- UNITED STATES
- Market Overview
- Increasing Complexity of Drilling Activity Holds Opportunities for OCTG Tubes
- Shale Plays Transforms US Energy Mix
- Value Added Seamless Pipes Gain Traction
- ERW Pipes Pose strong Competition to Seamless Pipes
- Replacement Market Generates High Demand
- Dwindling Automobile Production Impacts Demand in 2020
- Revival in Construction Industry Post Covid-19 to Improve Prospects
- Competitive Landscape
- Market Analytics
- CANADA
- Market Overview
- Oil & Gas Industry: A Significant Contributor to Canadian Economy
- Market Analytics
- JAPAN
- CHINA
- Market Overview
- Seamless Pipes & Tubes Market
- Production Scenario
- Large Automotive Industry Augurs Well for Seamless Tubes Demand
- Market Analytics
- EUROPE
- FRANCE
- GERMANY
- ITALY
- UNITED KINGDOM
- SPAIN
- RUSSIA
- Market Overview
- Seamless OCTG Pipes & Tubes Demand in Russia
- Rise in Demand for Premium Products
- Drilling Complexity Drives Demand for High-Value Products
- Opportunities from Exploration of Untapped Oil & Gas Reserves
- Greenfield Oil Projects to Boost Demand for Line Pipes
- Competitive Landscape
- Market Analytics
- INDIA
- Market Overview
- Power Plants Expand Opportunities for Seamless Pipes
- Automobile Sector: An Important Market for Seamless Pipes
- Changing Construction Trends: Put the Seamless Pipes Market in Overdrive
- Indian Manufacturers Focus on Overseas Markets
- Competitive Landscape
- Market Analytics
- LATIN AMERICA
- Market Overview
- Market Analytics
- MIDDLE EAST
- Market Overview
- OCTG Pipes Scenario
- Competition
- Market Analytics
- AFRICA
IV. COMPETITION
- Total Companies Profiled: 146
For more information about this report visit https://www.researchandmarkets.com/r/kacs6t
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