“The global market for oil country tubular goods (OCTG) has grown at a notably strong rate over the past few years, mainly because of the surging demand for oil and natural gas coupled with their rising prices which have resulted in increased investment in the energy exploration and production activities. Global demand for oil/energy is anticipated to increase from 2,000 million tons of oil equivalent to 16,800 in 2030. About 93% of this increase in demand is expected to come from key emerging markets - China and India.
“The demand of OCTG rose significantly as drilling activity increased in response to the rising prices of oil and gas. As a result, producers favored increased OCTG output over standard and line pipe. The oil and gas drilling remains strong although there have been some signs of slowing. As a result of the increase in the demand for energy across the globe, especially within the emerging economies, a rise in the number of oil and gas exploration projects is expected and that would boost the demand for the OCTG.
“At present, the majority of energy demand is resulting from the transportation industry and industrialization in emerging economies, especially China and India, which are experiencing a strong increase in national wealth due to improving economy. These are a few of the factors that are fuelling the demand of energy, and driving the global OCTG market at the same time.”
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