Oil Country Tubular Goods Market - By Material, By Type, By Type, By Manufacturing Process, By Product, By End Use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Oil Country Tubular Goods Market Overview

The oil country tubular goods market size is estimated to reach US$39.1 billion by 2030 after growing at a CAGR of around 6.7% from 2024 to 2030. The oil country tubular goods are a combination of various seamless steel tubular products such as drill pipe, well casing, tubing, and others that are helpful in drill carrying. The OCTG is used in drilling activities for hydrocarbon extraction, oil and gas transportation, and others. The high demand of oil country tubular goods in the oil and gas for exploration and production, extraction, drilling, and others is driving the oil country tubular goods market. Furthermore, the emphasis on boosting onshore and offshore production, along with flourishing oil and gas sector will offer major growth in the market during the forecast period.

In the Oil Country Tubular Goods (OCTG) market, ongoing technological advancements are reshaping manufacturing processes. Innovations encompass improved corrosion-resistant coatings and innovative alloys, enhancing the durability and overall performance of tubular goods. This evolution responds to industry demands for robust and long-lasting materials, showcasing a commitment to excellence and efficiency. Manufacturers investing in these advancements position themselves to meet the evolving needs of the energy sector, ensuring the reliability and longevity of OCTG products in demanding oil and gas applications.

In the Oil Country Tubular Goods (OCTG) market, a notable shift towards digitalization and data integration is evident. The industry is embracing advanced digital technologies and data analytics to monitor equipment health, enabling predictive maintenance strategies. This not only enhances overall operational efficiency but also ensures proactive measures to address potential issues, reducing downtime and optimizing resource utilization. The integration of digital tools positions OCTG players at the forefront of technological innovation, fostering a more resilient and adaptive landscape in the energy sector.

COVID-19 Impact

The oil country tubular goods industry saw major impact in the covid-19 outbreak. The oil country tubular goods have major applications in the oil and gas sector for onshore and offshore activities. The oil and gas industry experienced the worst collapse in the covid outbreak. The decline in oil exploration and production activities and declining prices led to major disruption in the market. The supply disruption, falling demand, and halt in oilfield activities created a negative impact on the oil & gas sector. According to the International Energy Association (IEA), the global oil demand declined by 9.3 million barrels per day year-on-year in 2020. The decline in production and oil exploration activities in onshore as well as offshore sector led to major fall in the well casing, tubing, natural gas liquid transportation, and other uses of the oil country tubular goods. Thus, with declining demand for OCTG products in the outbreak, the oil country tubular goods industry experienced a major slowdown in 2020.

Report Coverage

The report: “Oil Country Tubular Goods Market Report– Forecast (2024-2030)” by IndustryARC covers an in-depth analysis of the following segments of the oil country tubular goods industry.

By Material: Chromium Steel, Manganese, Nickel, and Other.

By Type: Seamless and Welded.

By Manufacturing Process: Continuous Mandrel-rolling, Push Bench, Plug Mill Rolling, Cross-roll Piercing, and Other.

By Product: Drill Pipe, Well Casing, Tubing, Line Pipe, Sucker Rod, Coiled Tubing, Extension, and Others.

By End Use Industry: Onshore (Gas Transportation and Oil Wellbore) and Offshore (Natural Gas Transportation, Oil Fluid Drilling, and Other).

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa).

Key Takeaways

• The oil country tubular goods market size will increase owing to its major demand for drilling, oil and gas transportation, hydrocarbon extraction, wellbore, and others in onshore and offshore sector during the forecast period.
• The North America region is the fastest growing region in the oil country tubular goods industry due to growing emphasis on exploration and production activities, drilling projects, and growth in oil and natural gas liquid production.
• The demand for well casing is growing in the OCTG market owing to its major application for drilling, extraction, and fluid transportation uses in the oil & gas sector.

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Oil Country Tubular Goods Market Segment Analysis – By Product

By product, the well casing segment accounted for the largest share in the oil country tubular goods market and is expected to grow at a CAGR of 6.1% during the forecast period. The well casing is a large diameter pipe that is inserted in the drilled borehole section for the drilling activities in the onshore and offshore oil and natural gas sector. The growing demand of well casing in influenced by rise in drilling and oil and gas extraction activities. The OCTG casing offers strong foundation and helps the continuous deep drilling, thereby providing smooth bore installation. Furthermore, the emphasis on oil & gas exploration and drilling is boosting the growth of oil country tubular goods industry. According to the Energy Information Administration (EIA), in 2022, annual production of associated-dissolved natural gas (or associated natural gas) increased 9% to 15.5 billion cubic feet per day (Bcf/d) in the major U.S. onshore crude oil-producing regions, mostly due to an 8% increase in crude oil production. Thus, with major demand of OCTG casings for onshore and offshore sectors, the oil country tubular goods market will grow rapidly during the forecast period. 

Oil Country Tubular Goods Market Segment Analysis – By End-Use Industry

By end-use industry, the onshore segment held the largest oil country tubular goods market share and is expected to grow at a CAGR of over 6.5% during the forecast period. The demand of oil country tubular goods is growing in the onshore sector due to its major use in onshore drilling, hydrocarbon extraction, transportation, well casing, and others. The rising demand of upstream sector owing to development and growing emphasis on exploration activities across the globe is creating a drive in the market. Furthermore, increasing production of oil wells and natural gas has influenced the demand for the OCTG products. According to the Eerdata, in 2022, global crude oil production increased by a record 5.4% rate, much above its 2021 growth (+1.6%). Furthermore, with rise in upstream oil and natural gas production and exploration projects, the oil country tubular goods industry will experience growth during the forecast period. 

Oil Country Tubular Goods Market Segment Analysis – By Geography

By geography, the North America segment is the fastest-growing region in the oil country tubular goods market and is projected to grow by over 7.4% during the forecast period. The growth of oil country tubular goods in this region is influenced by rising oil and gas drilling activities and investment in the oil and gas sector. The development in the oil and gas fields, hydrocarbon extraction through drilling, shale gas, natural gas liquids pipeline, onshore and offshore exploration in the United States is boosting the growth of oil country tubular goods. According to the Energy Information Administration (EIA), the crude oil production in the United States is forecasted to grow by 630,000 barrels per day in 2023. Furthermore, the rise in deep water exploration has led to major usage of premium oil and gas drilling equipment, thereby propelling the growth of oil country tubular goods market. Thus, with major expansion of exploration & production activities and major investment in oil and gas projects in the North American region, the oil country tubular goods market will grow during the forecast period.

Oil Country Tubular Goods Market Drivers

Rising demand in the Oil & Gas Sector

The demand of oil country tubular goods is rising for its major application in the oil & gas industry. The OCTG products such as seamless tubing, casing, drill pipes, and others are used in various drilling activities, gas exploration, and others. Moreover, the development in fig count of various oil and gas fields, drilling activities, and exploration & production projects in the petroleum sector is driving the oil country tubular goods market. The growth in the oil and gas sector is creating a major demand for the oil country tubular goods product in the market. According to the India Brand Equity Foundation (IBEF), the oil demand is expected to reach around 11 million barrels by the year 2045 in India. Thus, the growing well casing, drilling, and production base in the oil and gas sector is leading to major growth opportunities in the oil country tubular goods industry.
Increasing oil and gas exploration and production (E&P) activities
The demand of oil country tubular goods is growing in the oil and gas sector. The rise in E&P activities for increasing oil and gas production is driving the global oil country tubular industry. The rise in crude oil and natural gas production and drilling will boost the growth of OCTG products such as tubing, well casings, drill pipes, and others. For instance, the Indian Oil Corporation Limited built the oil and gas assets portfolio, participating at 24 exploration and production blocks, with 12 overseas E&P blocks and 12 domestic E&P blocks in 2020. Thus, the rising exploration & production (E&P) sector in the oil and gas sector is influencing major growth prospects for oil country tubular goods market.

Oil Country Tubular Goods Market Challenges

Fluctuation in oil & gas prices and volatility in oil production activities

The oil country tubular goods have major demand in the oil and gas sector. However, the volatility in the crude oil prices and fluctuation in raw material prices such as steel is creating a major challenge in the OCTG market. According to the The Journal of Petroleum Technology, the oil and gas exploration sector saw its best year in over a decade with discoveries up along with greater quality prospects, creating $33 billion in value and full cycle returns of 22% based on $60/bbl Brent prices. The fluctuating prices of oil create an impact on production activities due to volatility in crude oil related activities, thereby leading to fall in the demand for OCTG products and hampering the growth in the oil country tubular goods market.

Oil Country Tubular Goods Industry Outlook

The oil country tubular goods top 10 companies include:

1. Tenaris
2. Vallorec
3. National Oilell Varco
4. SB International, Inc.
5. EVRAZ
6. Tenergy Equipment & Services Ltd.
7. ArcelorMittal SA
8. ILJIN Steel Co
9. TMK Ipsco Enterprises
10. Nippo Steel & Sumitomo Metal Corporation

Recent Developments

• In September 2023, Jindal Hunting Energy Services Ltd, a joint venture of Jindal SAW Ltd and Hunting Energy Services Pte Ltd has set up India’s first facility for producing and supplying pipes, tubes, and premium connections to the Oil Country Tubular Goods (OCTG) market.
• In August 2022, ADNOC secured a significant five-framework agreement worth USD 1.83 billion for directional drilling and logging while drilling. The project encompasses essential components like wellheads, downhole equipment, liner hangers, and services. This strategic move aligns with ADNOC's goal to drill new wells, enhance production capacity, and reinforces its role in the Oil Country Tubular Goods market.
   

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