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Oil Country Tubular Goods – New Revenue Pockets
Oil Country Tubular Goods (OCTG) are prerequisites in the production of oil and gas from the reservoir. OCTG products mainly consist of Casing, Tubing and Drill-pipes. These products have their own significant usage for producing oil and gas. The ever-increasing demand for energy is leading to the fullest utilization of resources, extensive exploration, and production activities in unconventional reserves such as shale reserves and growing activities in developing avenues such as ultra-deepwater reserves. These activities trigger the rise in demand for the OCTG market.
Asia-Pacific is the largest market and China holds the maximum share in demand for OCTG products. Large scale exploitation of conventional and unconventional reserves that include shale reserves in the country is generating a huge demand for OCTG. According to Energy Information Administration (EIA), the oil consumption growth in China is approximately one-third of the world's oil consumption growth in 2013, and the projection is to have the same share in 2014 which will further drive the OCTG market in China.
North America follows Asia-Pacific in the demand for OCTG with U.S. being the major market for the demand for OCTG in the region. According to the U.S. EIA, the natural gas production in the country is expected to increase from 23.0 trillion cubic feet (tcf) in 2011 to 33.1 tcf by 2040, an increase of nearly 44% with the bulk of the production share expected to come from shale gas. The boom in drilling industry provides a promising opportunity for the OCTG market.
South America is the fastest growing market for OCTG, with offshore activities increasing with a tremendous pace in the region and growth in onshore well counts. Brazil is the most influential market in the region and will contribute to the majority for the demand of OCTG in the region.
Oil Country Tubular Goods Market by Grade (API, Premium), by Product (Seamless, ERW), & by Geography (North America, South America, Europe, Asia-Pacific, Africa, and Middle East) - Global Trends & Forecast to 2019
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