Can index based pricing drive price negotiations in OCTG?


By: Beroe Inc. --

24 June, 2014

Can index based pricing drive price negotiations in OCTG?

Global exploration and production (E&P) spend is experiencing a steep growth, thereby driving spend towards oilfield consumables and capital equipment. Oil Country Tubular Goods (OCTG) constitutes a major percentage of the E&P spending and has unique challenges in sourcing with the latest trade cases against Asian manufacturers not helping the volatility of the market. OCTG demand is shifting to reflect the challenging geographies and formations in deep-water and ultra-deep-water drilling. As a result, premium connections and seamless alloy tubing have seen a major upswing in demand from operators creating a backlog in preferred grades and increasing volatility. An accurate price prediction with definitive "Go/No-Go" criteria will be an invaluable tool to category managers in planning their OCTG purchase cycle. Join Beroe's Oil & Gas experts, Sreyanshu Padhy and Mahesh Radhakrishnan, as they discuss their take on OCTG price tracking and its significance to category managers for OCTG. Key Take Away:

  • Key trends and insights into the Global OCTG market as a decision enabler
  • Demand drivers affecting consumption in different OCTG grades.
  • Robust and dynamic price tracking through an index based model.



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