Drill Pipe Market Size By Grade (API, Premium), By End Use (Onshore, Offshore), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Norway, UK, Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan, Azerbaijan, Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, China, India, ASEAN, Oman, Saudi Arabia, UAE, Qatar, Angola, Nigeria, Algeria, Brazil, Argentina, Venezuela), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2025
Published Date: October 2016 | 124 Pages | Report ID: GMI796 Report Format: PDF
Drill Pipe Market size was over USD 1.7 billion in 2015 with forecast to grow over 2% from 2016 to 2025.
U.S. Drill Pipe market size, by grade, by revenue (USD Million), 2013-2025
Increasing exploration of unconventional resources will drive the global drill pipe market size during forecast period. Major countries accounting for exploration and production activities are the U.S., Saudi Arabia, Russia, China, and Canada, the UAE, Iran, Brazil, and Mexico.
In July 2016, the global rig count increased by 74 units as compared to June 2016. For Instance, the Canada rig count increased by 31 units to 94 rigs, U.S. added 32 units to 449 rigs, Argentina rig counts raised by 9 units, Norway added four units to 20 units and Mexico added 3 units. Increase in number of rigs will favor the increase of exploration and production, which will drive the global drill pipe market size. Directional drilling, well completion & intervention, artificial lift and drill bit technology are some of the services which will further boost the demand for drill pipes in the near future.
High investment in O&G projects will further compliment growth. China holds over 30 tcm of recoverable shale gas resource out of which it has completed over 80 appraisal wells including more than 20 horizontal wells in 2013 by investing more than USD 1 billion on shale gas revolution.
Angola drill pipe market analysis displays strong growth, owing to several large contract will be offered for tender for example Total is investing USD 16 billion in Kaombo offshore project, and Eni has several large development project in west and east hub in offshore block.
Product Grade Trends
API grade drill pipe market share was valued at over USD 1,057 million and in term of volume, estimated to expand at over 2.8% during forecast period owing to its low cost. Premium grade segment is likely to witness a high growth subject to increasing offshore production, being ideally suitable for deep-water exploration and production as it can withstand with high temperature as well as pressure.
End Use Trends
Offshore applications will witness significant growth during forecast period owing to increasing investment in deep and ultra-deep water offshore fields. Over USD 300 billion have been invested into western Europe where, Norway accounted for USD 180 billion, Canada USD 24 billion and North America USD 140 billion and Mexico 90 billion.
Onshore drill pipe market size was estimated to reach over 1.15 million tons in 2025 and in term of revenue, is estimated to expand at over 2.3%, owing to ongoing onshore developments. Saipem has been awarded a contract of USD430 million in onshore drilling segment in the South America and Middle East.
In 2015, Africa drill pipe market size was estimated at USD194.8 Million and in term of volume, is likely to reach at over 3.5% by 2025. In 2015, Pertamina (Indonesia) has get approval to develop oil and gas well in North Africa from Algerian oil and gas regulator.
U.S. drill pipe market share could be driven by shale gas exploration and production, high O&G investment and reserves. Saudi Arabia will witness a steady growth in future owing to rising demand of oil in sweltering Middle East. In 2014, diesel, heavy fuel oil and crude oil combustion accounted for 68% of fuel used to generate electricity.
Russia drill pipe market size was valued at over USD 113 Million in 2015 and in term of volume, is expected to reach at 3% by 2025 owing to investment in development of gas field. DEA, oil and gas firm is planning to invest USD 1.26 billion to develop Davlin natural gas field of Norway. Petroleum Development Oman signed USD 600 million contract with Medco Energi of Indonesia in 2015, to continue development of the 18 small and marginal field in southern Oman.
High oil and gas project investment in mature oil fields to increase production capacity of crude oil may favor the growth of UAE in forecast period. Abu Dhabi will increase its rig count to about 100 to achieve the production capacity of 3.5 mbpd.
Competitive Market Share
Major participants include Hilong Group, Tenaris S.A, TMK Group, Tejas Tubular Products, Inc., DP Master, Drill Pipe International, National Oilwell Varco, Vallourec S.A., Oil Country Tubular Limited, Texas Steel Conversion, Inc., Jiangyin Long Bright, Superior Manufacturing.
The Industry will witness a growth during forecast period owing to increasing horizontal drilling. Increasing crude oil demand coupled with increasing exploration and production of oil and gas primarily in offshore field would favor drill pipe market size during forecast period.
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