Market Trends of North America Oil Country Tubular Goods Industry
This section covers the major market trends shaping the North America Oil Country Tubular Goods Market according to our research experts:
Premium Grade Segment to Dominate the Market
- The premium-grade OCTG market is in the growing phase on account of increasing demand for the same from upstream activities. The premium-grade applications are widespread in gas wells, horizontal wells, and high pressure and temperature wells. Moreover, with the increase in offshore rig count during 2017-2018 after the slump in the oil price in 2014 the demand for the oil country tubular goods is expected to increase during the forecasted period.
- The increase in the deep-water exploration in remote areas with harsh environments has resulted in an increase in the use of premium quality drilling equipment, which has resulted in the growth of the market. The Gulf of Mexico is one of the major offshore deep-water reserves, which is likely to witness an upsurge in production in the forecast period.
- With the large-scale implementation of hydraulic fracturing technology and the shale revolution, the United States, which has been a net importer of energy since 1953, is well on track to become a net energy exporter by 2022.
- Further, exploration of natural gas is receiving huge impetus with surge in development of shale reserves. Moreover, the horizontal directional drilling has promulgated the production of natural gas from shale reserves, which, in turn, is a big boost for premium grade OCTG market.
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United States to Dominate the Market
- United States is expected to be the largest market for OCTG products in the region during the forecast period. The widespread development of oil & gas fields in the region both onshore and offshore is likely to provide huge business opportunities for companies operating OCTG business in the forecast period
- In the United States, during the past decade, the shale drilling regions of the United States have expanded the use of horizontal and directional drilling activities, adding thousands of feet in the lateral run to what previously had been vertical-only drill strings.
- Horizontal laterals, which can be of 5,000 feet or more in length, have resulted in a significant increase in the number of tons of tubular products used per well. So, an increase in horizontal drilling activities in the shale play area is expected to drive the OCTG market during the forecast period.
- Moreover, increased lateral lengths and greater drilling complexity are expected to further increase the requirement for OCTG consumption per rig per month in the United States.
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