Asia-Pacific Oil Country Tubular Goods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Manufacturing Process (Seamless and Electric Resistance Welded), Grade (Premium Grade, and API Grade), and Geography (India, China, Japan, South Korea, and Rest of Asia-Pacific)
ABOUT THIS REPORT
Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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The market for Asia-Pacific oil country tubular goods is expected to grow at a CAGR of more than 2.7% approximately during the forecast period of 2020 – 2025. Factors such as reducing the supply-demand gap, the low oil breakeven prices due to technological advancements and reduced oil service costs, and increased directional drilling are expected to drive the market. Moreover, oil country tubular goods are likely to be promulgated by an expected recovery of crude oil prices and strategic initiatives taken by the companies operating in the upstream sector to augment the E&P activities. On the other hand, high initial investments, lack of skilled labor, government regulations, and operational challenges such as harsh weather conditions are restraining the market growth.
Premium grade OCTG is likely to witness significant demand over the forecast period as the requirement of premium grade OCTG products is higher in upstream operation.
The liberalization of the oil and gas sector in the Asia-Pacific region is aimed to increase the foreign investments and thereby helping the oil and gas industry to grow, which, in turn, is likely to provide an opportunity for oil country tubular goods market.
China is expected to dominate the market over the forecast period owing to its improved domestic oil and gas production, which, in turn, increases the demand for OCTG products.
Scope of the Report
The Asia-Pacific oil country tubular goods market report include:
Electric Resistance Welded
Rest of Asia-Pacific
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Key Market Trends
Premium Grade OCTG to Witness Significant Demand
The premium grade OCTG market is in the growing phase on account of increasing demand for the same from oil and gas upstream activities. The premium grade applications are widespread in gas wells, horizontal wells, high pressure (above 5,000 psi) and high temperature (above 250 F) 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.
As per the government’s five year’s plan for natural gas (2016-2020) in China, the proportion of natural gas in the energy consumption mix is expected to rise about 10% by 2020, from about 5.9% in 2015, through domestic exploration & production activities.
Amongst the years, India has been one of the fastest growing large economies in the world. However, India remains largely dependent on oil imports to meet up with its growing need for oil. Moreover, in a bid to promote energy security by reducing its over-dependence on the oil imports, the Indian government has set itself an ambitious target of reducing oil imports by 10% by 2022.
Oil & Natural Gas Corporation (ONGC) and Oil India Limited (OIL) along with numerous private players such as BP, Reliance, among others have announced a series of large investments projects, both offshore and onshore, which is expected to increase the demand of OCTG products in India significantly.
Despite its lack of domestic energy resources, South Korea is home to some of the biggest and most advanced oil refineries in the world. In a bid to improve the nation's energy security, the national oil and natural gas companies are actively seeking overseas exploration and production opportunities.
Therefore, as the market for OCTG is directly dependent on oil & gas activities in Asia-Pacific region, which, in turn, is expected to register high demand for premium grade OCTG. Furthermore, countries such as Japan has a well-established OCGT industry, with export capabilities to other regions as well.
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China to Dominate the Market
China's newly adopted 13th Five-Year plan for the years 2016 to 2020 underscore China's commitment to deeper reforms in several critical sectors, including oil and gas (O&G).
Boosted by government’s support in 13th Five-Year plan, numerous international service companies and International Oil Companies (IOCs) have increased their presence in China mostly through partnering with Chinese companies. The offshore oil projects have attracted significant investments from IOCs and China National Offshore Oil Corporation (CNOOC), the largest offshore oil & gas producer in China.
The offshore rig count in China reached 25 in March 2018. Increased offshore drilling has resulted in the increase of complexity and the lateral lengths of the wells drilled in China, which is expected to further supplement the demand for premium grade OCTG in the country.
China holds a well-established network of OCTG manufacturing companies. Chinese domestic equipment manufacturers are expected to hold approximately 85% of the domestic oilfield services market. China benefitted a major share from the export of Oil Country Tubular Goods (OCTG) products when the United States was witnessing a shale production boom.
Therefore, on a long-term forecast, with expected improving domestic oil & gas production, the demand for OCTG products is expected to increase, with a significant share coming from rising number of offshore oil & gas projects in China.
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The Asia-Pacific oil country tubular goods market is fragmented. Some of the key players include National-Oilwell Varco, Inc., ILJIN STEEL CO., Nippon Steel Corp, Inc., Tenaris SA, and TPCO Enterprise, Inc.