Market Trends of Africa Oil Country Tubular Goods (OCTG) Industry
This section covers the major market trends shaping the Africa Oil Country Tubular Goods Market according to our research experts:
Premium Grade OCTG to Dominate the Market
- The premium grade OCTG market is in the growing phase on account of increasing demand for the same from upstream activities. The premium grade applications are widespread in gas wells and high pressure and temperature wells.
- The exploration of natural gas is receiving huge impetus with surge in development of shale reserves. Moreover, the horizontal directional drilling has promulgated the production of natural gas from shale reserves, which, in turn, is a big boost for premium grade OCTG market in Africa.
- East Africa represents a region of growing importance for the oil & gas industry. This region, which had been relatively unexplored previously, is gradually gaining significance in the oil & gas map of the world and is expected to attract considerable investment in the future. Development of this region will in turn help in driving the growth of premium grade segment in the oil country tubular goods industry.
- Moreover, countries such as Nigeria, Angola, and Libya have huge reserves of crude oil and natural gas. With the recovery of crude oil prices, the upstream activities in the region are expected to witness growth during the forecast period, which is further expected to increase demand for premium grade OCTG.
Understand The Key Trends Shaping This Market
Download Sample
Nigeria Driving the Market Demand
- Nigeria is one of the largest and oldest oil producers in Africa. The oil and gas sector is one of the most important sectors in the country's economy, accounting for more than 90% of the country's exports and 80% of the Federal Government's revenue.
- Development of ultra-deepwater Egina oilfield by Total is one of the key projects, which started production in the first week of 2019. The Egina field may significantly boost the production and cash flow, in 2019, and continue onward, promulgating Africa's oil country tubular goods demand during the forecast period.
- Further, NNPC (Nigeria National Petroleum Corporation) has signed an agreement for seven Critical Gas Development Projects, to deliver around 3.4 bcf of gas per day, in order to bridge the medium-term supply gap, by 2020, on an accelerated basis.
- Hence, over the years, the country has been taking initiatives to increase their upstream oil & gas capabilities, especially with regard to drilling equipment and services, along with upgrading the pipelines for transportation. Therefore, the market for OCTG is expected to increase during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
