Drill Pipe Market Analysis

Drill Pipe Market Analysis

API drill pipe market is anticipated to grow over 7% by 2024. Cost-effectiveness, low temperature toughness and high torque resistance to withstand the harsh environmental conditions, are some of the underlying parameters which will propel the product adoption.
 

Premium drill pipe market will witness growth on account of its suitability for deep-water and ultra-deep-water exploration along with increasing offshore production. For instance, the International Energy Agency (IEA) under New Policy Scenario, projected the offshore oil and gas production to reach 57 mboe/d by 2040. In addition, the ability of these drill pipes to effectively function in difficult geographical terrains like rocky layers will thrust their deployment.
 

Onshore drill pipe market is predicted to witness growth on account of increasing rig count coupled with lower operational risks as compared to offshore drilling. Ongoing shale projects coupled with huge untapped potential will drive the industry growth. In 2017, Noble Energy announced to allocate USD 1.8 billion across onshore with major focus toward Eagle Ford, DJ Basin and Delaware Basin for drilling and completion. Rising focus toward heavy oil reservoir will further stimulate the product demand.
 

Offshore drill pipe market is predicted to expand over 8% by 2024. Rising number of onshore mature fields along with increasing investment toward ultra-deep exploration will propel the business growth. For instance, National Hydrocarbon Commission of Mexico (CNH) announced that Qatar petroleum & Shell gained the rights for exploration blocks as part of the Mexico Deep Water Round 2. Innovation and digital transformation in order to reduce the operational cost will augment the business growth.
 

China drill pipe market in 2017, was valued over USD 150 Million. Increasing demand for LNG & piped gas from residential and commercial sector will stimulate the product penetration. For instance, as per the U.S. Energy Information Administration, China natural gas consumption is predicted to reach 38 billion cubic feet per day by 2040. Further, shifting trends toward E&P of unconventional well including light tight oil and shale will drive the business growth.
 

North America drill pipe market will witness robust growth owing to rising capital expenditure from independent players across the region. For instance, according to Scottish Development International, the capital expenditure of Exxon Mobil in offshore oil and gas was estimated to be USD 927 million from 2008 to 2012 and reached to USD 7,328 million for 2013-17 across the region.
 

The UAE accounted for over 9% of the Middle East drill pipe market share. Rising focus to achieve diversified economic growth along with various government schemes to enhance crude oil production will propel the business landscape. For instance, ABU Dhabi National Oil Company (ADNOC) plans to double its rig count by 2018 in order to increase their production capacity.
 

Russia drill pipe market is predicted to grow over 5% by 2024. Increasing consumption of natural gas, technological advancement in ultra-deep drilling and favorable policies from respective government will fuel the product adoption. For instance, in 2018, Halliburton released new ultra-deep resistivity service that allows operator to map fluid and reservoir boundaries.