Oil Country Tubular Goods Market Analysis

Global Oil Country Tubular Goods Market Overview

Global Oil Country Tubular Goods Market Size was valued at USD 22241.9 Million in 2023. The Oil Country Tubular Goods Market is projected to grow from USD 23910.04 Million in 2024 to USD 42,732.1 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.53% during the forecast period (2024 - 2032). Oil Country Tubular Goods (OCTG) is tube and pipe which is used in the production of oil and gas. This pipe is used both onshore and offshore for the production of oil and gas. Oil Country Tubular Goods are a collection of rolled metal products such as drill pipe, casing and tubing, line pipe, couplings, connections and accessories which are useful in the production of oil and gas. Casing pipe is used for lining the borehole which has been dug into the ground for procuring oil or gas and stabilizing it. A casing pipe is subject to axial tensions and high internal pressures which are generated while pumping oil or gas.

They also have to bear the external pressures arising from the surrounding rocks underground. A tubing pipe is pipe which is placed inside the wellbore through the casing pipe. It is responsible for the transportation of hydrocarbons to the surface. Tubing pipe is used for transporting natural gas or crude oil after the drilling is complete. It transports gas and oil to the facilities for further processing. A drill pipe is seamless pipe which is rotated in order to circulate the drilling fluid. This pipe is useful for pumping the drilling fluid back up the annulus. The annulus is the space in the oil well between the casing and the piping. Easy circulation of the fluid within the well is possible because of the annulus. The drill pipe is subject to axial tension since high torque is required for rotating the down-hole assembly and drilling the fluid and circulating it. The OCTG drill pipe needs to be extremely strong as they have to bear a high amount of stress underground. The drill pipe is used at the drilling rigs, and they are available in different sizes and different qualities.

The growth of the OCTG market is driven by several key trends, including increased drilling activities, a shift towards unconventional oil and gas resources, and technological advancements in drilling and exploration. Furthermore, the rise in oil and gas prices has led to restraining exploration and production activities. One of the significant challenges is the volatility of oil and gas prices, which directly affects the demand for OCTG products. Other challenges include environmental concerns and regulations, increasing competition, and the lack of skilled labor.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Oil Country Tubular Goods Market Trends

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  Expansion of Exploration & Production Activities in Emerging Economies

  
  

The expansion of exploration and production (E&P) activities in emerging economies is due to the shift in the global energy landscape, driven by economic growth, technological advancements, and increased energy demand. One of the drivers of this expansion is the need of the of energy security. Emerging economies knows the importance of securing a stable and diverse energy supply to sustain their economic growth. As a result, they are increasingly investing in the exploration and production of domestic energy resources to reduce dependence on external sources. This strategic move not only enhances energy security but also mitigates the impact of volatile global energy prices. Technological advancements play a crucial role in unlocking the potential of E&P activities in emerging economies. Innovations in drilling techniques, reservoir management, and data analytics enable more efficient and cost-effective extraction of hydrocarbons. Moreover, the adoption of advanced technologies in renewable energy sectors, such as solar and wind, facilitates the expansion of clean energy production. According to the International Energy Agency’s Report, investment of more than USD 1 billion per day is expected to go into solar investment in 2023. This will boost the renewable energy sector and promote the use of solar.

Moreover, the increasing investment in onshore and deepwater drilling projects is a significant driver for the oil country tubular goods (OCTG) market, influencing its growth and dynamics. The surge in investments in drilling projects, both onshore and in deepwater locations, has several implications for the demand and development of the OCTG market. Onshore drilling projects have witnessed substantial investment due to the accessibility of resources. As exploration and production activities intensify in onshore regions, the demand for OCTG products, including pipes, casings, and tubing, rises significantly. These steel tubular goods play a crucial role in facilitating the drilling, completion, and production processes in onshore wells. The increased investment in onshore drilling projects, especially in regions with untapped hydrocarbon potential, directly contributes to the growth of the OCTG market.

Development of Unconventional Energy Sources

The development of unconventional energy sources represents a significant opportunity for the global oil country tubular goods (OCTG) market. Unconventional energy sources, such as shale gas and tight oil, have gained prominence in recent years, presenting a paradigm shift in the global energy landscape. This shift not only opens up new avenues for energy production but also creates a substantial market for OCTG products due to their indispensable role in unconventional resource extraction.

One key aspect driving the opportunity for the OCTG market is the unique drilling and completion requirements of unconventional resources. Shale gas and tight oil reservoirs demand advanced drilling techniques, including horizontal drilling and hydraulic fracturing (fracking), to extract hydrocarbons from the tight formations. The “Shale Revolution” refers to the combination of hydraulic fracturing and horizontal drilling that enabled the United States to significantly increase its production of oil and natural gas, particularly from tight oil formations, which now account for 36% of total U.S. crude oil production. This new production capacity has reduced the United States’ dependence on oil imports from overseas and continues to provide an important economic boost as the country recovers from the 2008 recession. These processes necessitate specialized tubular goods that can withstand the challenges posed by unconventional reservoirs, such as high pressures, extreme temperatures, and complex geological conditions. The OCTG market benefits from the increased demand for specialized products designed for unconventional resource extraction. As unconventional energy development expands globally, the OCTG market gains opportunities in supplying these customized tubular goods.

Additionally, the versatility of OCTG products positions them as essential components in various stages of unconventional resource extraction. From drilling and casing to tubing and production, OCTG plays a crucial role in the entire life cycle of unconventional wells. This comprehensive involvement in the unconventional energy production process ensures a sustained demand for OCTG products. Furthermore, technological advancements and innovations within the OCTG sector have been driven by the unique challenges presented by unconventional energy extraction. Manufacturers are continually developing and enhancing OCTG products to meet the evolving requirements of unconventional drilling and completion techniques. This innovation not only ensures the efficiency and safety of unconventional energy projects but also opens up new market segments and applications for OCTG products.

Oil Country Tubular Goods Market Segment Insights:

Oil Country Tubular Goods Market by Product Insights

Based on product, the oil country tubular goods market has been segmented into Drill Pipe, Casing Pipe, Tubing Pipe, and Others. In 2022, the casing pipe segment drove the Oil Country Tubular Goods Market by holding a substantial market share of 42.7% with a market value of USD 9,171.9 million. It is projected to register a CAGR of 7.8% during the projected timeframe.

Oil Country Tubular Goods Market by Application Insights

Based on application, the oil country tubular goods market has been segmented into onshore and offshore. In 2022, the onshore segment drove the Oil Country Tubular Goods Market by holding a substantial market share of 58.7% with a market value of USD 12,590.6 million. It is projected to register a CAGR of 7.8% during the projected timeframe.

Oil Country Tubular Goods Market by Dimension Insights

Based on Dimension, the oil country tubular goods market has been segmented into below 140 mm, 140 mm to 200 mm, and upto 406 mm. In 2022, the upto 460 mm segment drove the Oil Country Tubular Goods Market by holding a substantial market share of 42.7% with a market value of USD 9,162.3 million. It is projected to register a CAGR of 7.8% during the projected timeframe.

Oil Country Tubular Goods Market by Process Insights

Based on Process, the oil country tubular goods market has been segmented into Electric Resistance Welded (ERW) and Seamless. In 2022, the seamless segment drove the Oil Country Tubular Goods Market by holding a substantial market share of 60.4% with a market value of USD 12,963.7 million. It is projected to register a CAGR of 7.7% during the projected timeframe.

Oil Country Tubular Goods Market by Grade Insights

Based on Grade, the oil country tubular goods market has been segmented into API Grade and Premium Grade. In 2022, the API Grade segment drove the Oil Country Tubular Goods Market by holding a substantial market share of 71.6% with a market value of USD 15,369.9 million. It is projected to register a CAGR of 7.4% during the projected timeframe.

Oil Country Tubular Goods Market Regional Insights

By region, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, the North America region emerged as the leading segment with a CAGR of 7.2%. The segment is projected to reach a value of USD 18,550.0 million by the end of the forecast period. The Middle East & Africa region accounted for the second-largest segment with a market value USD 4,659.0 Million in 2022.

Oil Country Tubular Goods Key Market Players & Competitive Insights

The global oil country tubular goods market has a global presence, with major players operating in regions such as North America, Europe, Asia-Pacific, and the Middle East. The geographical distribution of oil and gas reserves and exploration activities significantly influences the demand for OCTG products across different regions. Prominent companies compete for market share in the Global OCTG market, fostering a competitive landscape. The companies are entering into acquisitions and expansions so as to retain their position in the market. For instance, in February 2023, Tenaris launched its Marketplace in Canada for on-demand sales of OCTG and Line Pipe. The Tenaris Marketplace in Canada is a user-friendly and efficient e-commerce tool that allows access to Tenaris's inventory of API products in the region. Some of the prominent players operating in the oil country tubular goods market include ArcelorMittal, EVRAZ plc, NIPPON STEEL CORPORATION, NOV Inc., Sumitomo Corporation, and Tenaris.

ArcelorMittal: ArcelorMittal, established in 2006 through the merger of Arcelor and Mittal Steel, stands as the world's leading integrated steel and mining company. ArcelorMittal is renowned for its broad spectrum of steel products catering to various industries, including automotive, construction, appliances, and packaging. The company boasts an extensive product range, encompassing flat steel, long steel, and stainless steel, meeting the evolving needs of global markets. The business segments of ArcelorMittal span the entire steel production process. From mining iron ore and coal to manufacturing high-quality steel products, the company maintains a vertical integration that enhances operational efficiency. In 2021, approximately 52.9 million tons of crude steel were produced through the basic oxygen furnace process and approximately 16.2 million tons through the electric arc furnace ("EAF") process. The company produced 8.8 million tons of steel products in Hazira and Gujarat plants.

EVRAZ plc: EVRAZ plc is a multinational metals and mining company with a diverse portfolio of products and operations. Established in 1992 and headquartered in London, the company has grown to become one of the leading vertically integrated steel, mining, and vanadium businesses globally. EVRAZ operates in multiple countries, including Russia, North America, Europe, Asia Pacific and South Africa. The company's primary focus lies in the production of steel and steel-related products, such as rail, large-diameter pipes, and various flat and long steel products. EVRAZ is recognized for its vertically integrated business model, encompassing the entire production process from raw material extraction to manufacturing and distribution. This integration ensures control over the supply chain and enhances operational efficiency.

Key Companies in the Oil Country Tubular Goods Market includes:

• ArcelorMittal


• EVRAZ plc


• ILJIN STEEL CO. LTD.


• JFE Steel Corporation


• NIPPON STEEL CORPORATION


• NOV Inc.


• Oil Country Tubular Limited


• Sumitomo Corporation


• Tenaris


• SB International, Inc.

Oil Country Tubular Goods Industry Developments

November 2023: Nippon Steel Corporation has obtained EcoLeaf Environmental Product Declarations based on the Japan EPD Program operated by the Sustainable Management Promotion Organization (SuMPO) for three types of high-alloy OCTG and line pipe products. These are the first EPDs for stainless steel products manufactured in Japan.

March 2023: ArcelorMittal completed acquisition of CSP in Brazil. The acquisition offers significant operational and financial synergies and brings with it the potential for further expansions, such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity.

Feb 2022: NOV Inc, acquired AFGlobal’s Advanced Drilling Systems to offer integrated Managed Pressure Drilling solutions.

Oil Country Tubular Goods Segmentation

Oil Country Tubular Goods Product Outlook

• Drill Pipe


• Casing Pipe


• Tubing Pipe


• Others

Oil Country Tubular Goods Application Outlook

• Onshore


• Offshore

Oil Country Tubular Goods Dimension Outlook

• Below 140 mm


• 140 mm to 200mm


• Upto 406mm

Oil Country Tubular Goods Process Outlook

• Electric Resistance Welded (ERW)


• Seamless

Oil Country Tubular Goods Grade Outlook

• API Grade
  
  
  
  • Premium Grade
  
  
  
  

Oil Country Tubular Goods Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • Russia
  
  
  • France
  
  
  • UK
  
  
  • Spain
  
  
  • Netherlands
  
  
  • Belgium
  
  
  • Poland
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Australia & New Zealand
  
  
  • Thailand
  
  
  • Malaysia
  
  
  • Indonesia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  

“The manufacturers of oil country tubular goods are adopting strategies such as collaboration, mergers and acquisitions, product updates, and agreements to gain market share across the regions. In Feb 2023, Tenaris launched its Marketplace in Canada for on-demand sales of OCTG and Line Pipe. The Tenaris Marketplace in Canada is a user-friendly and efficient e-commerce tool that allows access to Tenaris's inventory of API products in the region”