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Drill Pipes Market to Reach USD 2.44 Billion by the End of 2028

The Global Drill Pipes Market is estimated to reach a valuation of USD 2.44 billion by the end of 2028, exhibiting 1.5% CAGR over the projected period. Drill pipes play a vital role in gas and oil exploration, as they can withstand immense stress, load, and heat during the drilling operation. Increasing demand for energy, expansion of production activities and exploration, coupled with the rising demand for oil & gas, technological advancements in oil field drill bits, and huge investments on offshore reserves, are some of the major factors in supplementing the global Drill Pipes market growth over the forecast period.

Even before the oil prices have been hit by the global coronavirus pandemic, they have been on  a decline for some time. This is mainly due to the excess supply of oil as manufacturers flooded the market with more oil than the world could use. Apart from these challenges, midstream constraints, upstream volatility, industry consolidation, and shifting customer demands are some other major concerns. However, new technologies offer new hope, as they are opening up different opportunities for oil and gas companies to explore.

Oil and gas companies are keen to explore unconventional avenues around the globe for exploration and production activities, as oil reserves in many regions are declining. For example, the declining production rates in developed regions such as the Middle East, North Sea, and the Gulf of Mexico, have already led energy firms to move out to other areas such as the Yamal basin in Russia, several regions in Antarctic, the Arctic, and the Andaman Sea in the Indian sub-continent.  

The latest improvements in drilling technologies such as horizontal drilling and pad drilling have augmented drilling effectiveness and reduced drilling rig downtime, which have facilitated faster drilling operations. This will lead to increased demand for drilling equipment such as drill pipes. The global drill pipes market will, therefore, witness growth due to the adoption of new technologies.

Global Drill Pipes Market, by Grade

Based on grade, the global Drill Pipes Market segmentation includes the American Petroleum Institute (API) and Premium drill pipe segments. The API drill pipe segment is expected to grow at the highest rate over the estimated period. These pipes can withstand low temperature, and they offer a cost-effective option. They also have a high torque resistance in harsh environmental conditions, which has led to the growth of the segment.

The Premium drill pipe segment is expected to grow substantially, as premium drill pipes offer an appropriate option for ultra-deep-water and deep-water exploration. The growth of the segment is also expected to benefit from increasing offshore production. For instance, by 2040, the International Energy Agency (IEA) under the New Policy Scenario anticipated the production of gas and offshore oil to reach 57 mboe/d.

Global Drill Pipes Market, by Application

Based on the application segment, the global drill pipes industry segmentation includes onshore and offshore. The onshore drilling segment is anticipated to have the maximum demand essentially due to the regional regulations on exploration activities and the high investments required in off-shore drilling. Untapped potential and ongoing shale projects will drive the global Drill Pipes Market growth.

The offshore drill pipe market is expected to grow over the forecast period due to increasing investment on ultra-deep exploration and a rising number of onshore mature fields.

Global Drill Pipes Market, by Region

The North American region is anticipated to lead the global drill pipes market. This is on account of the increasing production and exploration activities in the US. According to API’s 2015 Joint Association Survey on Drilling Costs, the domestic oil and natural gas industry in America consumed an estimated USD 122.8 billion in drilling approximately 28,809 oil and natural gas wells in 2015. Exploratory good expenditures were estimated at $5.6 billion, while development well expenditures were $109.6 billion in 2015.

The Asia Pacific is also projected to have a substantial share in the global drill pipes market. As per the U.S. Energy Information Administration, by 2040, China's natural gas consumption is anticipated to reach 38 billion cubic feet per day.

Key Developments in the Global Drill Pipes Market

  • In February 2019, Baker Hughes (US) and Qatar Petroleum (QP) signed a Memorandum of Understanding (MoU) to explore new opportunities to expand in the country and to support Qatar Petroleum’s Tawteen Program.
  • The Kuwait Petroleum Corporation (KPC) announced an investment of over USD 115 billion across oil and gas between 2015-2020.
  • In 2018, the federal government of Iraq declared its oil production objective to reach 7 million BPD by 2022.
  • In February 2018, the National Hydrocarbon Commission of Mexico (CNH) announced an agreement of alliance. The partnership gave Qatar Petroleum & Shell the rights for exploration blocks as part of Mexico Deep Water Round 2.
  • In March 2017, Noble Energy (US) announced to focus on Eagle Ford, DJ Basin, and Delaware Basin for drilling and completion by allocating USD 1.8 billion across onshore activities.

Some Key Findings of the Global Drill Pipes Market Report Include:

  • Major global Drill Pipes Market analysis, trends, forecasts, along with the country-specific market analysis
  • An in-depth analysis of the global Drill Pipes Market includes an analysis by Grade, by Application, and by Regions, along with an analysis of trend-based insights and factors.
  • Product offering details, competitive benchmarking, and development approaches adopted by the important industry players, along with their investments in the last five years
  • The market study includes the micro and macro analysis of the regions, drivers, restraints, opportunities, challenges, guidelines, and regulations that are influencing the global Drill Pipes Market.
  • Some major industry players functioning in the global Drill Pipes Market include Jiangyin Long Bright Drill Pipe Manufacture Co. Ltd., Drill Pipe International LLC, Hilong Group, National Oilwell Varco, Tenaris S.A., Vallourec S.A., Texas Steel Conversion Inc., TMK Group, Oil Country Tubular Limited, Tejas Tubular Products Inc., Vallourec S.A., and RK Pipe LLC, among others.

Market Segmentation:

By Grade:

  • American Petroleum Institute (API)
  • Premium

By Application:

  • Onshore
  • Offshore

By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • Middle East
  • Rest of the world
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