Middle-East Oil Country Tubular Goods (OCTG) Market - Growth, Trends, and Forecast (2020 - 2025)

The Middle-East oil country tubular goods (OCTG) market is expected to register approximately at a CAGR of more than 4.2% during the forecast period. Factors, such as the reducing supply-demand gap, the low oil breakeven prices due to the technological advancement and reduced oil services cost, and increased directional drilling are expected to drive the market. Moreover, oil country tubular goods are likely to be promulgated due to the recovery of crude oil prices and strategic initiatives taken by the companies operating in the upstream sector to augment the E&P activities. However, factors, such as sanctions on several countries in the region, along with geopolitical tension are expected to hinder the growth of the market studied.

• The premium-grade OCTG products are likely to witness higher growth rate on account of increasing focus on gas wells, horizontal wells, high pressure (above 5,000 psi) and high temperature (above 250 F) wells. The requirement of premium-grade OCTG products is higher in harsher and challenging upstream operation which is prevalent in the Middle-East region.
• Liberalization of oil and gas industry by major countries in Middle-East to increase the foreign investment and thereby helping the oil and gas industry to grow is likely to provide a opportunity for the OCTG market in the region.
• Saudi Arabia is one of the major oil producers globally, and the country stood second in production of crude oil in 2019. The economy of Saudi Arabia is highly dependent on oil & gas upstream sector, and the oil exports account for 40% of country’s GDP. Hence, Saudi Arabia is expected to be the largest market in the region for OCTG.