San Francisco, 28 November
2018: According to a report published by Grand View Research,
Inc.; the global drill pipe market is expected to reach a valuation of around USD 1.31 billion
by 2025. Substantial oilfield expansions coupled with development of enhanced drilling
techniques with better productivity can drive the market during the forecast
period (2014 to 2025).
Increasing focus on improving product
strength is one of the key trends observed in the market. The market is also
witnessing rapid developments in terms of introduction of new technologies as
well as raw materials to get greater performance in all drilling conditions
including onshore and offshore remote oil and gas fields.
However, dip in crude oil
prices and high production costs can hamper expansion of the market for rill
pipes. In addition, rising concerns regarding emission of hazardous fumes
caused by exploration activities is also anticipated to hamper the growth.
Regulatory agencies such as the Fund for Wild Nature (FWN) have issued various
orders regarding petroleum production.
The worldwide drill pipe
market can be segmented on the basis of grade, application, and region. Based
on grade, the market can be categorized into premium grade and American
Petroleum Institute (API) grade. The API grade segment is expected to continue leading the overall
market in terms of market share during the forecast period. Standardization of
finished products coupled with comparatively low prices are expected to support
growth.
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Use of AIP grade pipes can
also help reduce operational cost of the Exploration and Production (E&P)
and operator companies. These products are preferred in normal environment and
conventional basins due to easy accessibility and reduced Operating Expense
(OpEx) to E&P as well as contractor companies. The premium segment is also
expected to showcase significant growth on account of increasing exploration
activities in unconventional and harsh environmental conditions in Coal Bed
Methane (CBM), tight, and shale reserves.
As per application, the market
can be bifurcated into offshore and onshore. In 2015, onshore held the largest
market share of over 58% in terms of revenue. It is expected to showcase the
fastest growth during the forecast period. This expansion can be accredited to
remarkable developments in onshore basins in U.S, Middle East, Nigeria, and
Venezuela. Significant advancements in offshore locations such as Golden
Triangle which includes the Gulf of Mexico, Brazil, and West Africa, the
Persian Gulf, and South China Sea can further impel growth.
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Geographically, the market for
drill pipes can be divided into North America, Europe, Asia Pacific, Central
and South America, and Middle East and Africa. Discovery of new hydrocarbons
reserves in South China Sea, Israel, Australia, Egypt, Pakistan, and Senegal is
expected to provide lucrative opportunities for growth in the forthcoming
years.
North America is one of the
key markets. High investments by major E&P companies in conventional as
well as unconventional fields are anticipated to bode well for regional growth.
In 2015, demand for offshore basins in U.S. exceeded a net value of USD 64
million and is anticipated to expand at a CAGR of 4.3% through 2025.
Asia Pacific and Central and
South America are projected to grow substantially over the forecast period on
account of flexible regulatory policies in counties including China, India,
Singapore, and Indonesia. The market in Indonesia is predicted to reach a net
value exceeding USD 19 million by 2025. Factors such as rise in rig activities
coupled with several new field developments including offshore basins
especially in countries such as Indonesia, China, India, and Australia are
likely to drive the growth in Asia Pacific region.
Some of the leading companies
operating in the drill pipe market include Texas Steel Conversion Inc.;
Superior Drill Pipe Manufacturing, Inc.; Jiangyin Long Bright Drill Pipe
Manufacture Co. Ltd.; Oil Country Tubular Limited; and National Oilwell Varco.
The market is moderately
fragmented owing to the presence of a large number of players. Most major
players are involved in mergers and acquisitions to gain higher market share.
Major companies are making R&D investments to optimize production quality
for improving overall strength to fulfill the API specifications. This factor
is likely to create significant business opportunities in terms of future
demand.
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Press Release of Drill Pipes Market@
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About Grand View Research
Grand View Research, Inc. is a
U.S. based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides
syndicated research reports, customized research reports, and consulting
services. To help clients make informed business decisions, we offer market
intelligence studies ensuring relevant and fact-based research across a range
of industries, from technology to chemicals, materials and healthcare.
