Lift application in oil and gas industry is a method of artificial lifting of fluids from the oil wells in which carbon steel tubes are mostly used. The oil & gas industry is channelizing efforts to facilitate recovery from the slowdown which will help to boost the demand for carbon steel tubes over the forecast period.
The global Carbon Steel Tubing in Oil & Gas Lift application market is estimated to be valued at US$4,799.5 Mn by the end of 2018 and is expected to reach US$7,029.8 Mn by the end of 2028 while expanding at a CAGR of 3.9% over the forecast period.
The global carbon steel tubing in oil & gas lift applications market is anticipated to represent incremental opportunity worth US$ 2,230.3 Mn between 2018 and 2028.
Horizontal Wells Are Gaining Momentum over Vertical Wells Globally
The production of shale gas is majorly conducted by four countries globally, which are the U.S., Canada, China and Argentina. These countries are commercially producing either shale gas or crude oil from tight oil. It is expected the growth in this industry will lead to the growth of carbon steel tubing in oil and gas lift application market.
The growth momentum for horizontal wells in oil and gas lift applications picked up between 2011-12 and reached its maximum production rate by 2014-15. However, the oil and gas operators have halted the oil and gas drilling operations and investments due to low crude oil prices.
The ongoing recovery of oil and gas industry will attract more investment over the forecast period, which will leads to the growth of carbon steel tubes market in oil and gas lift application.
The hydraulically fractured wells accounted for nearly 70% of oil and gas wells drilled in 2016-17. In addition to that, horizontal wells have more drilled footage than vertical wells. This is creating opportunities for the manufacturers and suppliers of carbon steel tubing in oil and gas upstream operations.
Replacement of Legacy Tubing to Carbon Steel Tubing
A tube functions as a medium of conveyance of important liquids and gaseous materials over long distances and owing to various external factors, is susceptible to deterioration over time. Unchecked damages in aged pipelines can lead to leakages, resulting in loss of materials as well pollution to the environment.
Replacement of such aged tubes is mandatory and the demand for replacement has been on a steady rise over the past few years as is evident from the gas distribution companies in the U.S. which are replacing their older worn-out tubes with new high strength plastic tubes at the rate of around 40,000 kilometers on a yearly basis, according to a 2017 report by the American Gas Association.
Cast and wrought iron tubes, which happen to be the oldest known pipe material type, are used for the purpose of material transportation, especially in the oil and gas sector, and are now being replaced by steel tubes.
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North America Is Expected to Remain the Dominant Region in the Carbon Steel Tubing in Oil and Gas Lift Application Market over the Forecast Period
On the basis of geography, the global Carbon steel tubing in oil and gas lift application market is segmented into North America, Latin America, Western Europe, Eastern Europe, South East Asia & Pacific, China, India, Middle East & Africa and Japan.
The North America Carbon steel tubing in oil and gas lift application market accounts for a major value share and is projected to retain its dominance in the global carbon steel tubing in oil and gas lift application market over the forecast period.
The U.S. carbon steel tubing in oil and gas lift application market is expected to account for 77% market share in the North America market, by value, by the end of 2018, projecting a CAGR of 4.2% between 2018 and 2028.
The Carbon steel tubing in oil and gas lift application in Canada is expected to represent a total incremental opportunity of US$ 270.9 Mn between 2018 and 2028.
Key Market Participants Carbon Steel Tubing in Oil and Gas Lift Application
The report highlights some of the top companies operating in the carbon steel tubing in oil & gas lift applications market, such as Sandvik AB, ArcelorMittal S.A., Nippon Steel & Sumitomo Metal Corporation, Marcegaglia, Vallourec S.A., Tenaris S.A., Webco Industries Inc., U.S. Steel Tubular Products, JFE Holdings, Inc., SB International, Inc., CONTINENTAL ALLOYS & SERVICES Inc.
Prominent manufacturers of carbon steel tubing in oil and gas lift application are found to be involved in acquisition activities to enhance their market presence across the carbon steel tubing in oil and gas lift application market. Also, a well-structured and efficient supply chain along with an improved sales network in oil and gas industry are the major growth strategies being opted by carbon steel tubing in oil and gas lift application manufacturers for reaching out to end users.
Key Segments Covered
By Outer Diameter
- 60-120 mm
- 121-250 mm
- Internally Coated
- Externally Coated
By End Use
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific (APAC)
- Middle East & Africa (MEA)