Us And Canada Oil Country Tubular Goods Market - By Manufacturing Process , By Product Type , By Application , By Grade , By Material - Opportunity Analysis & Industry Forecast, 2024-2030

US & Canada Oil Country Tubular Goods Market Overview:

The US & Canada Oil Country Tubular Goods Market size is estimated to reach $16.9bn by 2030, growing at a CAGR of 5.1% during the forecast period 2024-2030. The Oil Country Tubular Goods market in the US and Canada is significant due to the region's robust oil and gas industry, driven by both conventional and unconventional resource development. Increasing demand due to shale gas and tight oil production is a major key trend for US & Canada Oil Country Tubular Goods Market. The boom in shale gas and tight oil production in North America, particularly in the United States, has led to a substantial increase in the demand for US & Canada Oil Country Tubular Goods Market.

The US and Canada Oil Country Tubular Goods market is poised for continued growth driven by technological advancements in drilling and increased regulatory measures to support domestic production. Tariffs on imported steel and anti-dumping duties have been crucial in shaping the market dynamics in the US and Canada. These measures aim to protect domestic manufacturers from unfair competition and overcapacity in the global steel market. These factors positively influence the US & Canada Oil Country Tubular Goods industry outlook during the forecast period.

Market Snapshot: 

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US & Canada Oil Country Tubular Goods Market - Report Coverage:

The “US & Canada Oil Country Tubular Goods Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the US & Canada Oil Country Tubular Goods Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic significantly impacted the growth of the US and Canada Oil Country Tubular Goods (OCTG) market. The pandemic led to a sharp decline in global oil demand due to widespread lockdowns, travel restrictions, and reduced industrial activities, causing oil prices to plummet. Consequently, oil and gas companies drastically cut their capital expenditures and drilling activities to conserve cash and manage uncertainties, leading to a decreased demand for OCTG products. Supply chain disruptions further exacerbated the situation, delaying projects and creating logistical challenges. Additionally, workforce restrictions and health protocols affected manufacturing operations, resulting in reduced production capacities.
• The Russia-Ukraine war has had a notable impact on the growth of the US and Canada Oil Country Tubular Goods (OCTG) market. The conflict has led to significant geopolitical tensions and disruptions in global energy supply chains, particularly affecting the supply of natural gas and crude oil from Russia. As Western countries-imposed sanctions on Russian energy exports, there was an increased emphasis on securing alternative sources of oil and gas, boosting drilling activities in North America. This surge in exploration and production efforts led to heightened demand for OCTG products. While the war created challenges related to supply chain disruptions and cost pressures, it also presented opportunities for North American oil and gas producers to fill the supply gaps, thereby supporting the OCTG market's growth amidst the geopolitical shifts.

Key Takeaways:

• Fastest Growth of Canada Country

Geographically, in the US & Canada Oil Country Tubular Goods market share, Canada is analysed to grow with the highest CAGR of 6.3% during the forecast period 2024-2030 due to rebounding oil and gas activity as commodity prices rebounded. Major energy producers are increasing capital investments into new drilling, supporting domestic demand for well casing and tubing. In 2022, Tenaris' $150M consolidation of seamless and ERW pipe manufacturing in Sault Ste. Marie, ON exemplifies moves toward centralized production hubs to gain economies of scale as companies look to capitalize on resurgent oil and gas activity. This allows more cost-competitive domestic production. The Canadian OCTG market is the increasing adoption of advanced drilling technologies such as horizontal drilling, coiled tubing drilling, and hydraulic fracturing. These technologies enable operators to access previously inaccessible reserves and increase production efficiency, which is driving demand for OCTG pipes in Canada. 

• Product Tubing Segment to Register the Fastest Growth

The product tubing segment is estimated to grow with the highest CAGR of 6.0% and 7.3% in the U.S. & Canda during the forecast period. The widespread adoption of horizontal drilling and hydraulic fracturing techniques in shale formations underscores the market's demand for advanced Product Tubing products, essential for enhancing efficiency in natural gas extraction. The US Oil Country Tubular Goods Market is experiencing robust demand for Product Tubing products amid the decade-long surge in natural gas production. With 79% of 2021's U.S. natural gas production coming from shale formations, the market sees an essential role for these products in maximizing efficiency, supported by a nearly 4% increase in NGPL production. These market trends are going to influence the growth of product tubing products. Canada's dynamic natural gas production, reaching a record high of 185 billion cubic meters in 2022 from a low of 149.6 billion in 2010, underscores the need for adaptive solutions in the US & Canada Oil Country Tubular Goods Market. Demand for innovative Product Tubing products is essential to optimize extraction efficiency amidst fluctuating production volumes.

• Onshore segment is Leading the Market

The onshore segment has the largest market share of 93% and 97% in 2023 in the US & Canada Oil Country Tubular Goods Market. Increasing onshore oil and gas exploration and drilling activities. Continuous advancements in drilling technologies and techniques increase efficiency and productivity in onshore drilling operations, influencing the selection of OCTG products with specific mechanical properties. The trend towards horizontal drilling in onshore applications continues to gain prominence, especially in unconventional resource plays. This trend demands OCTG products with specific characteristics, such as enhanced flexibility and tensile strength, to support these drilling techniques. The ongoing integration of digital technologies, including sensors, real-time monitoring systems, and data analytics, plays a crucial role in optimizing onshore drilling processes. This digital transformation enhances asset management, maintenance practices, and overall operational efficiency.

• Rising Shale Exploration and Production

Rising shale exploration and production significantly influence the US & Canada Oil Country Tubular Goods Market. The US & Canada Oil Country Tubular Goods Market thrives on the rising shale exploration and production, driven by the surge in oil and gas output. States like Texas and Oklahoma sustain their economic importance, while Ohio, Pennsylvania, and North Dakota undergo economic growth and transformation, aligning with the expanding significance of the energy sector. In Canada, the growth of shale and tight resource production offsets declines in conventional output. The Canada Energy Regulator's projection underscores the market's future reliance on shale, with expectations that it will comprise 80% of the country's natural gas production by 2035. While domestic production surges, the refining complex shift suggests ongoing crude oil imports, highlighting the market's demand for versatile products to accommodate varied oil compositions and meet refining requirements. In Canada, the Canada Energy Regulator foresees a moderate uptick in tight oil production from the Western Canadian Sedimentary Basin by 2030, offsetting declines in conventional heavy oil. As tight oil development is in its early stages, ongoing assessments and technological advancements will define its future. The market anticipates dynamic demand for specialized tubular goods aligned with evolving extraction techniques.

• Increasing Energy Infrastructure Investment

Increasing Energy Infrastructure Investment emerges as a pivotal market driver in the US & Canada Oil Country Tubular Goods Market. The Bipartisan Infrastructure Law (BIL), 2021, with a substantial budget exceeding $1 trillion, propels this transformation. Aligned with clean energy goals, the law's provisions for clean hydrogen, carbon capture technologies, and grid enhancements create a robust demand for specialized tubular goods, fostering growth across the entire power value chain in North America. The drive for Increasing Energy Infrastructure Investment is evident in Canada's 2023 budget, focusing on non-emitting electricity generation systems like wind and solar. This shift impacts the US & Canada Oil Country Tubular Goods Market, influencing the demand for materials such as OCTG in renewable energy projects. In 2015, only 20 percent of investments targeted renewables and decarbonization, a figure expected to surge to 40 to 50 percent by 2040. This transformative shift in energy investments may significantly impact the OCTG market, reshaping demand patterns and prompting the industry to adapt to evolving energy dynamics and sustainability priorities. Despite regulatory shifts towards decarbonization, an estimated 25 to 40 percent of energy investments in 2040 persist in fossil fuels, reflecting the industry's ongoing demand and the need to counter declines in production. Simultaneously, a gradual transition towards green technologies, electric transmission, and distribution signals a transformative investment focus, shaping the dynamics and demands within the OCTG sector.

• Fluctuating Oil and Gas Prices

Fluctuating Oil and Gas Prices pose a significant challenge in the US & Canada Oil Country Tubular Goods Market. In 2024, Canada's oil and gas industries grapple with market uncertainties amid the energy transition. Government policies and incentives impact OCTG market dynamics, emphasizing the industry's need to adeptly navigate fluctuating prices to secure a position in the evolving energy supply chain. In 2022, the record-high value of energy trade at $190 Million between the two nations, driven by surging energy prices, complicates OCTG market dynamics. Despite stable volumes of U.S. crude oil imports from Canada in 2022, the 38% increase in import values to $113 Million signals the impact of rising costs. The decline in U.S. crude oil exports to Canada adds further complexity, underscoring the market's vulnerability to trade fluctuations. The US and Canada Oil Country Tubular Goods (OCTG) market grapples with challenges stemming from high crude oil prices, a significant factor influencing elevated gas prices. As oil costs constitute 43% of regular gasoline prices, the industry contends with increased production expenses. The remaining 57% encompasses distribution, marketing, refining, and taxes, indicating a complex market impacted by both volatile oil prices and steady operational factors.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the US & Canada Oil Country Tubular Goods Market. The top 10 companies in this industry are listed below:

1. Tenaris SA
2. Vallourec
3. Evraz North America
4. US Steel tubular Products Inc.
5. Tianjin Pipe Corporation – TPCO
6. Nippon Steel
7. ArcelorMittal SA
8. Hengyang Valin Steel Tube Co., Ltd
9. National-Oilwell Varco Inc.
10. SB International Inc.

Scope of the Report: