TPI July 2013

Pipel ines late last year, london-based Metal bulletin research (Mbr) published its estimate that the global oil country tubular goods market will be valued at $39.8 billion by 2017. on the basis of a total ocTG market value of $31.6 billion in 2011, this would represent growth over a five-year period of about 26 per cent. since fortune favours the prepared mind, manufacturers of products for the oil and gas industry will be interested in a trend identified early by Mbr: increased demand for the premium connections that provide an absolute seal between pipes. because repairs to deep wells in harsh conditions are expensive and time-consuming, the

proportion of wells using premium connections is seen as increasing in tandem with the growth of offshore drilling. Heightened environmental concern over oil spills is another strong factor. as well as commanding high prices, premium connections foster advance ordering for a project, with all that that means for sales and added value in threading, couplings, delivery and related services. noting that the cIs and china are stepping up the use of premium connections in their pipelines, Mbr expects wider availability to promote their use.

Pulled by buyers. Pushed by the industry. This is a fairly good definition of a win-win situation.

Photograph: Tata Steel, UK