Global Well Casing Market size is slated to proliferate rapidly over 2022-2028. This is owing to the high awareness about the benefits of well casing pipes in maintaining borewell water safety by obstructing contaminants from seepages and ensuring maintenance-free longevity. In addition, the strong demand for oil and the subsequent rise in shale oil production will further amplify industry growth over the foreseeable future. Well casing refers to the process of supporting the walls of the newly drilled borehole from incidences of collapse by assembling, inserting, and cementing a pipe into the borehole. Stainless steel, plastic, and carbon steel are among the most common materials used for well casing.
Significant increase in oil prices and the rapid installation of oil and gas rigs are some of the prominent factors fostering the overall well casing market trends over 2022-2028. For example, in 2021, U.S. energy firms installed new oil and natural gas rigs for six weeks in a row, as the prices of oil soared to the highest since 2014, which could drive the need for well casing pipes for the drilled oil wells. Likewise, the favorable business outlook of metal mining in various countries including the U.S. will proliferate the adoption of well casing pipes for mining applications.
On the basis of application, the offshore segment is likely to account for a commendable share in the well casing industry by 2028. This is considering the reactivation of multiple cold-stacked drilling rigs for new jobs across the Golden Triangle. Norway, for instance, is expected to license businesses for deep-sea mining activities as early as 2023, placing it among the first countries to harvest metals from the seabed for wind turbines, electric vehicle batteries, and solar firms. This potential increase in seabed metal mining will boost the popularity of well casing design and enhance segmental expansion over the coming years.
Asia Pacific well casing market is projected to amass considerable profits by 2028, due to increasing regulatory recommendations on advancing exploratory drilling activities in the intertidal areas in the region. For instance, in 2021, the Union government of India proposed to enable exploratory oil and natural gas drilling in the intertidal regions of the CRZ (coastal regulation zones). This factor, alongside the substantial increase in consumption of natural gas in the country, will further augment the installation of casing equipment in gas wells over the estimated timeline.
The competitive landscape of the well casing industry consists of companies such as Innovex Downhole Solutions, Trican Well Service, NOV, Inc. (National Oilwell Varco, Inc.), NeOz Energy, Forum Energy Technologies, PAO TMK (Trubnaya Metallurgicheskaya Kompaniya OAO), Vallourec, Tenaris (Techint), Weatherford International, Halliburton, and Schlumberger, among others. These firms are implementing various strategies such as new service launches and acquisitions to expand their business footprint across the global market. For instance, in September 2021, Halliburton Company unveiled IsoBond, a cement system that lowers SCP (sustained casing pressure) at its source, designed to provide a barrier that shortens transition time, minimizes fluid loss, and improves shear bonding.
Rapid spread of the coronavirus pandemic across large cities and states of developing economies, which are the main consumers of natural gas, has severely impacted the gas demand. Disruptions across these regions with high penetration of gas pipeline networks, alongside the weaker demand, have also consequently affected the LNG imports. Factors such as these have created a hindrance to the well casing industry outlook over the past months.
However, the emergence of the mining sector from the COVID-19 crisis may aid industry recovery in the near future. Moreover, the robust financial outlook is expected to help mining companies remain resilient while addressing the impacts of the pandemic on their business operations. This factor, in turn, could augment the need for casing pipes and other equipment for mining wells worldwide.