TPi January 2019

OCTG, gas & pipeline products

Market overview of carbon steel tubing in oil and gas lift applications

Increasing shale-drilling activities in the USA and Canada will boost the demand for carbon steel pipes during the forecast period. Technological advancements in coating products to fight pipe corrosion have also supported the deployment of carbon steel tubing in oil and gas lift applications. However, availability of material alternatives such as steel, alloy steel, chromium steel, fibre glass, fibre reinforced plastic and corrosion- resistant alloys could restrict the adoption of carbon steel tubing. Oil and gas companies change their tubing requirements according to the required application in onshore and offshore, coupled with varying temperature conditions. Another key factor anticipated to negatively impact the manufacturing of carbon steel tubing is the skewed supply- demand ratio of steel attributable to excessive production and oversupply of Chinese steel. This situation led to cheap exports and subsequent shutting down of many steel plants, which further resulted in a price crash of carbon steel.

further driving shale gas production and resulting in growing demand for carbon steel pipes. This growth is projected to present potential opportunities to oil and gas companies looking to expand their onshore activities. High cost and complexities associated with offshore activities would also result in service providers switching to onshore activities. Geographically, North America is projected to dominate the carbon steel tubing landscape, considering ongoing developments in the hydraulic fracturing market for the production of shale gas. FMI envisages an increasing number of horizontal wells to significantly contribute towards deployment of carbon steel tubing in oil and gas upstream operations, further presenting potential market opportunities to manufacturers and suppliers of carbon steel tubing. Oil and gas companies replacing aged and damaged cast and wrought iron pipes with carbon steel tubing will further drive adoption. Another key factor increasing the demand for carbon steel tubing is the recovering oil and gas industry, and efforts to facilitate this recovery process.

In a recently published analysis, Future Market Insights (FMI) has studied various market dynamics including key drivers, trends, and growth scenario of the global carbon steel tubing market, with a focus on the key lift applications of carbon steel tubes in the oil and gas industry over the forecast period of 2018-2028. Market projections reveal revenue from the sales of carbon steel tubes for lift application in the oil and gas industry to reach a valuation of US$7,029.8mn by the end of 2028, up from an estimated US$4,799.5mn by 2018 end, expanding at a moderate CAGR of 3.9 per cent through to 2028. FMI predicts that increasing drilling activities to complement recovering crude oil prices will boost the sales of carbon steel tubing for a wide range of applications in the industry. The increasing number of horizontal wells in the USA, coupled with flourishing oil and gas production in the Gulf Of Mexico, Alaska and other states, will further spur the growth of the carbon steel tubing market through to 2028. With 1.6 per cent year-on-year growth over the period 2015-2030, natural gas consumption is projected to increase,

Future Market Insights – USA sales@futuremarketinsights.com www.futuremarketinsights.com

Canada Gas & LNG exhibition and conference LNG Canada’s positive final investment decision (FID) on an LNG project in Kitimat, British Columbia, signals the return of a more favourable investment climate for the energy sector. Higher oil and gas prices and lower break-evens via technological advancements could see a wave of previously stalled projects going forward.

sessions across the three days, attracting 5,000 visitors and with 200 exhibitors showcasing their latest innovations, products and services. dmg events – UK

Canada Gas & LNG will bring together the Canadian gas value chain, from producers to midstream players, downstream innovators, international buyers and government figureheads. The event will feature more than 50 commercial and technical conference

This latest development emphasises the growth and business opportunities within the Canadian energy market, and is a timely reminder of the forthcoming Canada Gas & LNG Exhibition and Conference, taking place in Vancouver, Canada, from 21 to 23 May 2019.

info@canadagaslng.com www.canadagaslng.com

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TUBE PRODUCTS INTERNATIONAL January 2019

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