The Global Drill Pipes Market is projected to reach USD 2.44 billion by 2028, growing at a CAGR of 1.5% during the forecast period.
Drill Pipes Market
Drill pipes are steel or aluminum tubulars fitted with threaded ends known tool joints, that are normally used in tension in the top part of the drill string to pump fluid and transmit torque to the bit. Using friction welding, tool joints are connected to the drill pipe tube to create a high integrity solid state welded link between the tool joint and the upset drill pipe. Drill pipe have significantly higher torsion capacity than the standard, that is ideal for extended depth drilling. Its facilities are equipped with the most advanced manufacture equipment. It plays a vital role in gas and oil exploration. It has to withstand immense load, stress, and heat throughout the drilling operation.
Expansion of production activities & exploration coupled with increasing demand for energy, technological advancements in oil field drill bits, increasing demand for oil & gas, and huge investments on new offshore reserves are a few of the other factors augmenting the market growth during the forecast period. The Kuwait Petroleum Corporation (KPC) announced an investment of over USD 115 billion across oil and gas between 2015-2020. Also the federal government of Iraq, in 2018, announced its oil production target to reach 7 million bpd by 2022.
As oil reserves in many region are depleting, oil and gas companies are starting look out for unconventional avenues around the globe for exploration and production activities. For example, the decreasing production rates in the established regions such as the Middle East, North Sea and Gulf of Mexico, has already led energy companies to move out to other areas like the Andaman Sea in the Indian sub-continent, the Yamal basin in Russia and several regions in the Arctic and Antarctic. The drill pipes market will see growth due to these new exploration activities.
API drill pipe market is anticipated to grow at the highest rate during the forecast period. Cost-effectiveness, low temperature toughness and high torque resistance to withstand the harsh environmental conditions, are some of the underlying parameters which will propel the product adoption. Premium drill pipe market will also witness growth on account of its suitability for deep-water and ultra-deep-water exploration along with increasing offshore production. For instance, the International Energy Agency (IEA) under New Policy Scenario, projected the offshore oil and gas production to reach 57 mboe/d by 2040. In addition, the ability of these drill pipes to effectively function in difficult geographical terrains like rocky layers will thrust their deployment.
Based on the application, the drill pipes market is segmented into offshore and onshore. The onshore drilling segment is expected to have the highest demand mainly due to the high investments required in off-shore drilling and also the regional regulations on exploration activities. The market is also expected to witness growth on account of increasing rig count coupled with lower operational risks as compared to offshore drilling. Ongoing shale projects coupled with huge untapped potential will drive the industry growth. Offshore drill pipe market is predicted to expand during the forecast period. Rising number of onshore mature fields along with increasing investment toward ultra-deep exploration will propel the business growth.
Drill Pipes Market
The North American region is expected to lead the drill pipes market in drill pipes. This is because the US is increasing their exploration activities and production activities. The domestic oil and natural gas industry in America spent an estimated $122.8 billion in drilling approximately 28,809 oil and natural gas wells in 2015, according to API’s 2015 Joint Association Survey on Drilling Costs. Development well expenditures were $109.6 billion in 2015, while exploratory well expenditures were estimated at $5.6 billion. Asia Pacific is also expected to have a significant share in the drill pipes market. Increasing residential and commercial demand for LNG & piped gas will boost the product penetration. For instance, as per the U.S. Energy Information Administration, China natural gas consumption is predicted to reach 38 billion cubic feet per day by 2040. Further, shifting trends toward E&P of unconventional well including light tight oil and shale will drive the business growth.
Key Factors Impacting Growth of Drill Pipes Market:
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Expansion of production activities & exploration.
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Growing demand for energy and technological advancements
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Increasing investments on new offshore reserves.
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Increasing energy demands
Key Developments:
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In March 2017, Noble Energy (US)announced to allocate USD 1.8 billion across onshore with major focus toward Eagle Ford, DJ Basin and Delaware Basin for drilling and completion
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In February 2018, National Hydrocarbon Commission of Mexico (CNH) announced that Qatar Petroleum & Shell gained the rights for exploration blocks as part of Mexico Deep Water Round 2.
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In February 2019, Baker Hughes(US), a GE company, the world’s first fullstream oil and gas company, has signed a Memorandum of Understanding (MoU) with Qatar Petroleum (QP) to explore new opportunities to expand its presence in the country and to support Qatar Petroleum’s Tawteen Program.
What Does This Report Provide?
This report provides a detailed understanding of the global drill pipes market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with potential impact on the drill pipes market during the forecast period and an in-depth analysis of the leading companies operating in the drill pipes market.
Market Segmentation:
By Grade:
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American Petroleum Institute (API)
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Premium
By Application:
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Onshore
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Offshore
By Region:
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North America
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By Country (US, Canada, Mexico)
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By Grade
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By Application
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Western Europe
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By Country (Germany, UK, France, Spain, Rest of Western Europe)
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By Grade
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By Application
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Eastern Europe
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By Country (Russia, Turkey, Rest of Eastern Europe)
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By Grade
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By Application
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Asia Pacific
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By Country (China, Japan, India, Rest of Asia Pacific)
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By Grade
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By Application
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Middle East
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By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
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By Grade
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By Application
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Rest of the World
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By Region (South America, Africa, Rest of the World)
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By Grade
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By Application
Companies Covered: Major Companies profiled in the report which are key players in the global drill pipes market. Drill Pipe International LLC, Hilong Group, National Oilwell Varco, Tenaris S.A., Vallourec S.A., TMK Group, Oil Country Tubular Limited, Tejas Tubular Products Inc., Texas Steel Conversion Inc., DP Master Manufacturing Pvt Ltd., Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd., RK Pipe LLC, Superior Drill Pipe Manufacturing Inc., Tenaris S.A., TMK Group, TPS-TechnitubeRohrenwerke, and Vallourec S.A....
Years Considered In The Study
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Historic Year |
2016, 2017 |
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Base Year |
2018 |
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Forecast Period |
2019-2028 |
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CAGR % (2019-2028) |
1.5 % |
Reasons to Buy This Report:
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Market size estimation of the global drill pipes market on a regional and global basis.
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Unique research design for drill pipes market size estimation and forecast.
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Profiling of major companies operating in the drill pipes market with key developments.
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Broad scope to cover all the possible segments helping every stakeholder in the drill pipes market.
Customization:
We provide customization of the study to meet specific requirements:
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By Segment
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By Sub-segment
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By Region/Country
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