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