|
The global drill pipes market is expected to reach USD 1.31 billion by 2025. Increasing innovation regarding improving product strength is a major trend in the industry. Industry players are focused on developing new technologies and raw materials for better performance in all type of drilling conditions including onshore and offshore remote oil and gas fields.
However, the dip in the crude oil prices over the last two years has restricted the market growth. Rig rental capital is declining in the offshore market, and customers have significantly higher bargaining power in negotiating new contracts and extensions, leading to lower day rates and an oversupply of rigs.
API grade drill pipes held the largest share in global demand and are expected to continue their dominance over the forecast period. Standardization of the finished products along with the relatively low prices of this grade are anticipated to promote market penetration. Utilizing these products also ensure reduced operational cost to the E&P and operator companies.
API grade products are mostly preferred in normal environments and conventional basins owing to the easy availability and reduced OpEx to both E&P and contractor companies. Exploration in unconventional and harsh environmental conditions particularly in shale, CBM, and tight reserves are expected to steer premium grade drill pipes demand over the forecast period.
- The 18th China(Guangzhou ) Int’l tube
& pipe Processing Equipment Exhibition
|
