The North America oil country tubular goods (OCTG) market is expected to grow at a CAGR of over 7.9% during the forecast period. Factors such as increased investment in the upstream sector have resulted in an increased number of rig charter activities and in the number of wells drilled and in production, resulting in greater demand for OCTG in the region. Moreover, the widespread development of oil & gas fields in the region both onshore and offshore is likely to provide huge business for the OCTG market during the forecast period. However, volatile crude oil prices and increased import duty in the United States are expected to restrain the growth of the market in North America.
- The premium-grade OCTG products are likely to dominate the market on account of increasing focus on the development of deepwater and offshore reserves, like the Gulf of Mexico. The requirement of premium grade OCTG products is higher in harsher and challenging upstream operation.
- Liberalization of the oil and gas industry in Canada and Gulf of Mexico to increase the foreign investment and thereby helping the oil and gas industry to grow is likely to provide an opportunity for the OCTG market in the region.
- The United States was the largest crude oil producers in the world, as of 2019. During the past decade, the shale drilling regions of the United States have expanded the use of horizontal and directional drilling activities, further driving the OCTG market in the country.
Key Market Trends
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.
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.
The North America oil country tubular goods (OCTG) market is moderately fragmented. Some of the key players operating in the market are National-Oilwell Varco Inc., ILJIN Steel Co., Nippon Steel Corporation, TMK PAO, and Tenaris SA.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast, in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.2 Electric Resistance Welded
5.3.1 United States
5.3.3 Rest of North America
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ArcelorMittal SA
6.3.2 ILJIN Steel Co.
6.3.3 National-Oilwell Varco Inc.
6.3.4 Nippon Steel Corporation
6.3.5 Tenaris SA
6.3.6 TMK PAO
6.3.7 TPCO Enterprise Inc.
6.3.8 U.S. Steel Tubular Products Inc.
6.3.9 Vallourec SA