Oil Country Tubular Goods Market - Forecast(2023 - 2028)

Oil Country Tubular Goods Market Overview

The oil country tubular goods market size is estimated to reach US$32.1 billion by 2027 after growing at a CAGR of around 6.7% from 2022 to 2027. 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

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 (2022-2027)” 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.

Figure: North America Oil Country Tubular Goods Market Revenue, 2021-2027 (US$ Billions)

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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), the United States consumed 30.48 trillion cubic feet of the natural gas in the year 2020. 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 Ministry Of Petroleum And Natural Gas, the total onshore crude oil production for 2019-2020 accounted to 12,355 metric tons in India. The OCTG products such as pipes, tubes, and others are majorly used for application in the onshore drilling and exploration. 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 U.S Energy Information Administration (EIA), the WTI crude prices were USD 40.34 per barrel in quarter 1 2020, declined to USD 24.64 per barrel in 2nd quarter of 2020, and then rose to USD 63.91 per barrel by quarter 4 in 2021. 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 July 2021, the Russel Metals Inc. and Marubeni-Itochu completed the merger of the Canadian line pipes or OCTG business with the goal to enhance growth opportunities and business portfolio.
• In January 2020, the Tenaris completed the acquisition of the IPSCO Tubulars Inc. from TMK with the aim to extend the product range, including the oil country tubular goods (OCTG) through this purchase.
• In March 2019, Vallourec secured a contract from PTTEP, a Thailand based national oil company with the aim to deliver more than 3000 tones of OCTG for M9 west exploration project in Myanmar. 

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