OCTG Market

OCTG Market Size (2024-2029):

The Global Oil Country Tubular Goods (OCTG) Market was valued at US$ 25 billion in 2023 and is anticipated to reach US$ 37.31 billion in 2029, registering a CAGR of 6.90% during the foreseen period from 2024 to 2029.

Market Overview:

The oil-based tubular products market is predicted to experience strong expansion throughout 2024 -2029 due to increased drilling and production activities. The growing call for high-end pipes coupled with the advent of technologically advanced pipes. Proper selection of OCTG during drilling operations can lower overall costs and reduce the risk of causing hazards. Market expansion is also dependent on improved efficiency and advancement of well-drilling technology to improve the recoverability of oil and gas resources. The growing call for advanced tubular oilfield products in new unconventional resource areas has a potential opportunity for companies to invest in new product development to differentiate themselves from their competitors. OCTG (Oil country tubular goods) are the components employed in the production of oil and gas from the well. Proper use of OTCG could help reduce the likelihood of any incidents, hazards, and risks that ultimately lower your company's production costs. Includes, casing, drill pipes, tubes, etc. The OCTG market is a highly competitive industry and with the largest number of drilling and exploration activities in unconventional reserves, the competition has escalated to a higher level.

Market Trends:

Oil and gas exploration and production activities are complex processes and require sophisticated equipment and technology, as this market is highly cyclical and volatile in nature. Falling commodity prices have secondary effects on the oil and gas value chain. Over the past few decades, the oil and gas industry has seen a number of active drilling rigs, creating a call for oilfield services around the world. The fall in oil prices has reduced the call for tubular products for oil countries. With the recovery in crude oil prices, the oil country tubular goods (OCTG) market has seen positive expansion, driven by increased shale production and increased horizontal and unconventional drilling activity.

Market Drivers:

Drilling activity expansion is predicted to drive the call for OCTG over the foreseen period. Activity in the oil and gas sector began to strengthen as raw materials recovered, followed by a multi-year price drop. With the recovery of oil and gas prices, companies have increased their investments that were previously blocked or delayed for the development of oil and gas projects. Suppliers of tubular products in oil-producing countries are predicted to benefit from increased business after the recovery. Intense competition among oil producers is also fueling escalating drilling activity around the world. The capital investment for the production of seamless OCTG is quite high, unlike the investment required for the production of welded products. The welded pipe segment is predicted to have the highest CAGR during the foreseen period due to the active participation of companies in improving product efficiency with an emphasis on cost-reduction strategies.

Market Restraints:

The lack of a skilled workforce and the high initial investment is predicted to be the main obstacles to the development of all verticals of the oil and gas industry.

Market Opportunities:

The sharp drop in oil prices in 2019 severely affected the sector and reduced company revenues, leading to sharp spending cuts. Escalating the call for energy and production is one of the main expansion drivers in the oilfield tubular products (OCTG) market. The emergence of horizontal drilling methods and hydraulic fracturing technology in recent years has dramatically increased the call for oilfield tubular products. Offshore oil and gas account for a large portion of product revenue and escalating production from shale resources will drive the call for OCTG products during the foreseen period. The increase in the worldwide number of offshore platforms is predicted to boost this segment in the coming years. In addition, the substantial expansion of existing offshore wells in deep and ultra-deep waters, primarily in the Gulf of Mexico, the Persian Gulf, the North Sea, and the South China Sea, is predicted to drive the call for OCTG in the above segment. The government and private entities are showing great interest in discovering new oil well reserves to meet future energy calls. Much of the investment by leading companies to unlock large oil and gas reserves is predicted to drive the market for the tubular gods of oil countries. Also, the exploration of unconventional fuel sources. Furthermore, many countries are struggling to reduce foreign exchange on hydrocarbon imports by discovering conventional and unconventional reserves within their territorial borders, driving the OCTG market's expansion.

Market Challenges:

There are some expansion factors in the market, including rising Brent prices and environmental issues.

OCTG MARKET REPORT COVERAGE:

Market Segmentation:

OCTG Market - By Grade:

• API
• Premium

API has defined some standard specifications for OCTG based on its properties, including ductility, temperature, and thermal compatibility. Depending on the location, the market can be classified into onshore and offshore areas. Onshore was the largest application sector in 2021.

OCTG Market - By Product:

• Seamless
• ERW

Market Regional Analysis:

The OCTG Market Report includes the segmentation of Regions:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Geographically, the Asia-Pacific has the largest share due to growing deep-water and unconventional reserve exploration activities, which are attracting the attention of major market players. Escalating technological advances aimed at escalating productivity and reducing production costs also play a key role in the expansion of the region. North America follows the Asia-Pacific region, with the United States accounting for the largest share. This expansion is attributed to factors such as the expansion of offshore drilling activity in the Gulf of Mexico, the shale boom, and the sharp increase in the discovery of potential untapped oil and gas reserves. North America accounted for a significant market share in 2021.

 The number of rigs has declined significantly worldwide since 2014, affecting the call for oil services in recent years. North American rigs remain the largest in quantity compared to the Middle East, followed by Latin America. The efficiency of platforms in the United States is escalating as they increase at a significant rate due to technological advances. OCTG consumption per rig and month has doubled since 2012, due to increased drilling complexity and longer side lengths. Well, production expansion and the drilling of new wells in the region are predicted to drive the call for oilfield tubular products in North America during the foreseen period.

Impact of COVID-19 on the OCTG Market:

The current scenario combines a supply shock with an unprecedented drop in calls and a worldwide humanitarian crisis. Furthermore, the financial and structural health of the oil and gas sector is worse than in previous crises. The Coronavirus pandemic is fueling what is already shaping up to be one of the industry's most transformative moments. At its current course and speed, the industry may now enter an era defined by intense competition, rapid technology-driven supply response, stable or waning appeal, scepticism, and pressure from investors. However, in most scenarios, oil and gas will remain a trillion-dollar market for decades. Given its role in providing affordable energy, it is too important to fail. So, the question of how to create value in the next normal is crucial. To change the current paradigm, the industry will need to dig deep and build on its proud history of bold structural moves, innovation, and safe and profitable operations in the toughest conditions. The winners will be those who take advantage of this crisis to boldly reposition their portfolios and transform their operating models. Companies that will not inevitably restructure or atrophy. The industry operates through long megacycles of trading and auctions, accompanied by accidents along the way. These megacycles have experienced strong fluctuations in value creation.

Market Key Players:

The key players in the global OCTG Market are

1. Nippon Steel & Sumitomo Metal Co. (Japan)
2. Vallourec (France)
3. Tenaris (Europe)
4. National Oilwell Varco (U.S.)
5. TMK (U.S.), Steel Tubular Products Inc (NA)
6. Iljin Steel Co (S. Korea)
7. Continental Alloys (Malaysia)
8. Anhui Tianda Oil Pipe Company (China)

Market Recent Developments:

• The Indian Oil Corporation (IOC) launched the country's first 100-octane gasoline on Tuesday, helping India join a selective league of nations around the world that have premium fuel.
• Gulf Oil launches next-generation motor oils for passenger cars. Gulf Oil Corporation Ltd., a Hinduja Group company, has launched an aggressive bid to increase its presence in the Passenger Car Engine Oil (PCMO) segment by launching three new products today in Mumbai.