08 October, 2019
RALEIGH, North Carolina, October 8, 2019 - The global Oil Country Tubular Goods (OCTG) is currently estimated to be worth $58.02 billion and is expected to grow at a CAGR of 8.2 percent until 2026, according to Beroe Inc, a procurement intelligence firm. The growth of the market is fueled by the rising global demand for oil and gas and requirements for quality OCTG.
The US, China, and Russia are the most important global markets, due to the high consumption of OCTG and hydrocarbon activity while the Asia-Pacific is the highest demand-generating geography, followed by North America. The Middle East is the largest premium connection market, due to sour gas discoveries, longer expected well life, and risk averseness. Asia (except China), the Middle East, and North America are mainly using heat-treated steel and alloy steel, due to offshore drilling, sour application, and shale gas. Horizontal drilling in the US is expected to drive the demand for premium grades and connections, providing better margins on OCTG.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The rising global demand for oil & gas, growth in crude oil prices, economic growth, and lack of alternative sources of energy remain the primary factors that influence the demand for OCTG market. Barriers to entry, fluctuation in steel prices, impact on the environment, global oil and natural gas depletion, increased cost of production, due to devaluation of currency in some regions, and regulatory issues, are the key challenges faced by the OCTG industry.
The major trends observed in the OCTG market globally are growth in the global rig count, rise in horizontal drilling, seamless pipe capacity development, and worldwide rig count development. Emerging technology trends in the market include magnetic flux leakage, coiled tubing, UT systems, and Eddy Current Technology. Consumption of seamless OCTG is significantly larger than welded OCTG, as the seamless process can achieve higher grades and heavier wall thicknesses.
The research methodology adopted for the report included:
The most popular sourcing strategy in the Oil Country Tubular Goods market is a single/preferred supplier model. The supplier model is typically chosen, based on the past procurement experience and price benefits. A global manufacturer (single supplier model) is preferred over regional manufacturers, due to the extensive pipe specifications available with global manufacturers.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com