Global OCTG (Oil Country Tubular Goods) Market Report: 2012 Edition- Koncept Analytics

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Global OCTG (Oil Country Tubular Goods) ---------------------------------------------------------2012


View Report Details Executive Summary The growth in oil and gas exploration and production over the last few years led to an increase in the demand for OCTG products. While the steel market is faced with uncertainty and weakening demand, the global OCTG market is recording strong prices on the back of stable demand. The rapid expansion of seamless pipe production in China is expected to have a significant effect on the future global market-balance. Increasing investment in the America is expected to further strengthen the market to meet an expected hike in the demand.

The oil and gas exploration and production activity in the US, the growth in rig count, expansion of shale drilling regions, display a trend of continuous growth which is driving the demand for OCTG products in the region. The trade actions in the US and Europe have made Chinese OCTG exporters shift their focus to regions like Indonesia, South America, and the Middle East, among others, which, in turn, is expected to bring a noticeable growth in the Chinese OCTG market. The OCTG market of Russia is also experiencing steady growth due to increasing rate of drilling activity in the country, coupled with the growth in oil production and OCTG pipe imports. The key trends and developments observed within the market include growth and development in global rig count and seamless pipe capacity development. But there are certain challenges which the market is facing as of now, some of which include environmental and regulatory issues and depletion of limited oil and gas reserves. The major factors contributing to the growth of the respective market include growth in crude oil prices, which, in turn, will boost the drilling activity and rising global demand for oil and natural gas. Increasing exploration and production activities have intensified competition in the global OCTG market, which is characterized by a few large players, namely Tenaris S.A., Vallourec S.A., OAO TMK and Sumitomo Metal Industries Ltd., among others. The present report offers a comprehensive analysis of the worldwide OCTG market with a special focus on certain regions, including North America, the US, China, Russia and Rest of the World. It provides competitive landscape of OCTG seamless and welded market, and profiles the leading players in the market along with their business strategies.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.


Oil country tubular goods (OCTG) are hollow steel products of circular cross-section used in the oil and gas industry for exploration and production activities. The global consumption of seamless OCTG witnessed an increase of approximately ….% rising from ….. million tonnes in 2010 to ….. million tonnes in 2011.

Global Seamless OCTG Consumption (2007-2011)

As of 2011, the global seamless OCTG production recorded a growth of approximately …..% in comparison with 2010. Million Tonnes

 The highest share of demand for OCTG products in 2011 was witnessed by NAFTA (North American Free Trade Agreement) which accounted for ….% followed by China and CIS accounting for …..% and ……% respectively of the total OCTG demand.  Market Growth Drivers - Rise in Global Demand for Oil and Gas -Growth in Crude Oil Prices -Lack of Alternative Sources of Energy

2007

2008

2009

2010

2011 OCTG Demand by Region (2011)

Global Seamless OCTG Production (2007-2011)

Million Tonnes

)

2007

2008

2009

2010

2011

NAFTA

China

CIS

Latam

Middle East

Africa

EU 27

Other Asia


OCTG encompasses three types of products viz. drill pipe, casing, and tubing and the market can be produced as seamless or welded tube and pipe…… North America (including Mexico) Seamless OCTG Consumption and Production (2007-2011E)

•As of 2011, the production of seamless OCTG in North America is expected to increase to ….. million tonnes in comparison with …. million tonnes in 2010 showing a growth of approximately …..%. The consumption of seamless OCTG in the region is also expected to witness an improvement of approximately …..% rising from ….. million tonnes in 2010 to ….. million tonnes in 2011.

Million Tonnes

• During 2011, the OCTG consumption in the United States was ….. million tonnes showing an increase of approximately ……% in comparison with …… million tonnes in 2010.  China’s seamless OCTG production and consumption increased to ….. million tonnes and …… million tonnes, respectively, as of the year end 2011.

2007

2008 Production

2009

2010

2011E

Consumption

China Seamless OCTG Consumption and Production (2001-2011E)

Million Tonnes

Million Tonnes

The United States OCTG Consumption (2007-2011)

2007 2006

2007

2008

2009

2010

2011

2008 Production

2009

2010

Consumption

2011E


The global market for OCTG products is highly fragmented with numerous players operating in the market. The Top 10 seamless producers accounted for …..% of the global seamless OCTG market Rest of World(excluding China) Seamless OCTG

Global Seamless OCTG Consumption Forecast (2010-2014F)

Million Tonnes

Million Tonnes

Consumption and Production (2007-2011E)

2007

2008 Production

2009

2010

2011E

2010

2011

2012F

2013F

2014F

Consumption

 The production and consumption of seamless OCTG in rest of the world is estimated to have increased by …..% and …..% respectively in 2011. On the competition front, Tenaris is the leading company in the market for OCTG consumption and production globally, with approximately ……% and …..% of the market share respectively for the year 2011. Other top companies are Vallourec, Sumitomo, TMK Ipsco., etc.

The global Seamless OCTG consumption is likely to grow from ........ million tonnes in 2012 to .......... million tonnes in 2014, at a CAGR of ……….%.  Key Trends - Growth in global rig count and seamless pipe industry.  Key Issues faced by the respective industry include: - Environmental and regulatory issues and depletion of limited oil and gas reserves.

Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa


Table of Contents 1. OCTG: An Overview 1.1 Introduction 1.2 Types of OCTG Products 1.3 OCTG Manufacturing Process 2. Market Overview 2.1 Global OCTG Market -Seamless OCTG -Welded OCTG -Geographic Breakdown -API Vs Premium Products 2.2 North America -Production -Consumption 2.2.1 The United States -Consumption -Rig Count -Pipe & Tube Imports -Price Trend 2.3 China -Production -Consumption -Exports 2.4 Russia -Production -Consumption -Imports -Price Trend

List of Graphs & Tables List of Charts Global Seamless OCTG Consumption (2007-2011) Global Seamless OCTG Production (2007-2011) Global Welded OCTG Demand (2007-2011) OCTG Demand by Region (2011) OCTG Demand – API Vs Premium (2007-2011) Global OCTG Market: API vs. Premium Products by Region (2011) Premium Market- Production vs. Consumption (2011-2012) North America Seamless OCTG Production and Consumption (20072011E) The US OCTG Consumption (2006-2011) The US Rig Counts vs. Drilling Permits (Feb-05 to Feb-12) The US Rigs Count: Oil vs. Gas Stake (2008- 2012(May)) Breakdown of the US Rig Count by Nature of Drilling Operations (Dec 2012) Pipe and Tube Imports into the US (2011) Welded Pipe and Tube Imports into the US (2011) The US OCTG Spot Prices (2005-2011) Seamless OCTG Production and Consumption (2007-2011E) China’s OCTG Exports (H108-H112) China’s OCTG Exports by Region (H112) Russian OCTG Pipe Production (Oct-11 to Apr-12) Russian OCTG Pipe Consumption (2004/11) OCTG Pipe Imports (2004-2011) Oil Production (2004 and 2011) Drilling Activity in Russia (2007-2011) Russian Tubular Goods Pricing Index (Jan-11 to Mar-12) ROW (excluding China) Seamless OCTG Production & Consumption (2007-2011E) Global Rig Count (2001-2011E) Global Rig Count Development (2007-2012) US Rig Count Development (2007-2012) Europe Rig Count Development (2007-2012)


2.5 Rest of World -Production -Consumption

3. Market Dynamics 3.1 Key Trends and Developments 3.1.1 Growth in Global Rig Count 3.1.2 Seamless Pipe Industry 3.2 Growth Drivers 3.2.1 Continued Rise in Global Demand for Oil and Gas 3.2.2 Growth in Crude Oil Prices 3.2.3 Lack of Alternative Sources of Energy 3.3 Challenges 3.3.1 Environmental and Regulatory Issues 3.3.2 Depletion of Limited Oil and Gas Reserves 4. OCTG Market - Competitive Landscape -Competitive Overview -Market Share 5. Company Profiles

5.1 Tenaris S.A. Business Description Financial Overview Business Strategies -Developing Higher-Value Tubular Goods -Enhancing Pipe Management Services

Middle East Rig Count Development (2007-2012) Global Oil Demand Forecast (2004-2012E) Global Gas Demand (2009-2011) Worldwide Crude Oil Prices (2006-2013E) Global Seamless OCTG Market Split by Producer (2011) Global Welded OCTG Market Split by Producer (2011) Tenaris’ Revenues by Business Segments (2011) Tenaris’ Revenues and Net Income (2007-2011) Vallourec’s Revenues by Geographical Area (2011) Vallourec’s Revenues by Application (2011) Vallourec’s Revenues and Net Income (2007-2011) TMK’s Sales Volume Breakdown by Geography (2011) TMK’s Sales Volume Breakdown by Product Type (2011) TMK’s Revenues and Net Income (2007-2011) Sumitomo Metal Industries’ Revenues by Business Segments, (2011) Sumitomo Metal Industries’ Revenues and Net Income (2007-2011) Global Seamless OCTG Consumption (2009-2013F) List of Tables US Pipe Market by Supply (2010-2012) Evolution of Rig Count by Regions (2007-2011) Seamless Pipe Industry Capacity Development (2011-2013) Production of Premium Seamless Market (2011-2015) Dependent & Independent Variables (2007-2011) Correlation Matrix Model Summary – Coefficient of Determination Regression Coefficients Output


5.2 Vallourec SA Business Description Financial Overview Business Strategies -Focusing On Acquisitions -Achieving Growth through Investments 5.3 OAO TMK Business Description Financial Overview Business Strategies -Development of Advanced Products -Increased Investments 5.4 Sumitomo Metal Industries, Ltd. Business Description Financial Overview Business Strategies -Expansion in Overseas Market -Focus on Customer Satisfaction 6. Market Outlook 6.1 Market Forecast 6.2 Forecast Methodology 6.2.1 Dependent and Independent Variables 6.2.2 Correlation Analysis 6.2.3 Regression Analysis


View Report Contact Us:Details These are abridged and sanitized sample pages from the comprehensive report on the “Global OCTG (Oil Country Tubular Goods)”. To know more about this report or for any customized research requirement, please contact the following:

Koncept Analytics

Vikas Gupta BD Manager

CS-36, Second Floor, Ansal Plaza Vaishali, Ghaziabad, U.P. – 201010 T. +91-120-4130959 C: +91-9811715635 vikas@konceptanalytics.com

www.konceptanalytics.com


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