The South and Central America oil country tubular goods (OCTG) market is expected to grow at a CAGR of over 4.5% during the forecast period. Major factors driving the market are reducing the supply-demand gap, the low oil breakeven prices due to technological advancement and reduced oil services cost, and increased directional drilling. However, volatile crude oil prices and the risk associated with the cyclic nature of the tube is expected to restrain the OCTG market.
– The premium-grade OCTG products are likely to witness significant demand on account of increasing focus on the development of deepwater and offshore reserves. The requirement of premium grade OCTG products is higher in harsher and challenging upstream operation.
– Liberalization of the oil and gas industry by major countries in South and Central America region is expected to increase the foreign investment and thereby helping the oil and gas industry to grow and is likely to provide an opportunity for the OCTG market in the region.
– Brazil is expected to witness significant demand during the forecast period in South and Central America region, owing to the increase in oil and gas exploration activities.
Get a PDF Sample for more detailed market insights: https://www.sdki.us/sample-request-87650
Key Market Trends
Premium Grade Segment to Witness Significant Demand
– The premium-grade OCTG market is in the growing phase on account of increasing demand for the same from upstream activities. The premium-grade applications are widespread in gas wells, horizontal wells, and high pressure and temperature wells. Moreover, with the increase in offshore rig count during 2017-2018 after the slump in the oil price in 2014 the demand for the oil country tubular goods is expected to increase during the forecasted period.
– The exploration of natural gas is receiving huge impetus with a surge in the development of shale reserves. Moreover, the horizontal directional drilling has promulgated the production of natural gas from shale reserves, which, in turn, is a big boost for premium grade OCTG market.
– YPF, Argentina’s state-controlled energy company, is expected to continue its drive to develop the country’s huge unconventional resources, with the Vaca Muerta shale field in Patagonia containing the second-largest reserves of shale gas in the world. The company aims to increase unconventional production by 150%, reaching half of the total production within the next five years.
– The increase in the deep-water exploration in the remote areas with harsh environments has resulted in the increase in the use of premium quality drilling equipment, which has resulted in the growth of the market.
– Therefore, based on above-mentioned factors, premium grade segment is expected to maintain its growth momentum in South and Central America region during the forecast period.
Brazil to Witness Significant Demand
– As of 2018, Brazil was the 10th largest producer of oil and gas in the world, the largest producer in South America and the 7th largest oil products consumer in the world. Almost 80-90% of oil and gas produced in Brazil are from the offshore.
– Brazil’s deep-water projects are dominating the oil and gas upstream sector and are likely to dominate the market in the forecast period. For instance, in 2018 nearly 56% of the oil and gas production comes from deep-water, and around 37% comes from shallow water.
– Also, the discoveries of large, offshore, pre-salt oil deposits have transformed Brazil into a top-10 petroleum liquid fuels producer.
– The outlook for foreign oil and gas companies in Brazil is bright, considering the significant investor-friendly regulatory reforms. The increase in oil & gas exploration activities is expected to positively impact the OCTG market in the region.
– In May 2020, Vallourec had extended a contract with Equinor in Brazil to supply seamless steel tubes and OCTG accessories. The products and services are expected to be used in Equinor’s activities in Brazil, in Peregrino field, in the Campos Basin (State of Rio de Janeiro), and in Bacalhau, a project located in the pre-salt area of the Santos Basin (State of São Paulo).
– Therefore, based on the above-mentioned factors, Brazil is expected to have a positive impact on the OCTG market in South & Central America region during the forecast period.
South and Central America Oil Country Tubular Goods (OCTG) Market Size Trends, Share, Growth, Supply and Manufacturers Analysis Research Report 2022-2031
Europe Energy Storage Market Size Analysis By Growth, Emerging Trends and Future Opportunities 2022-2031
India Artificial Lift Systems Market Size Outlook By Industry Share, Revenue, Regions and Top Key Players Analysis 2022-2031
United States Household Battery Market Size Analysis By Growth, Emerging Trends and Future Opportunities 2022-2031
New Zealand Wind Energy Market Size, Demand, Outlook, Trends, Revenue, Future Growth Opportunities 2022-2031
South Sudan Oil and Gas Downstream Market Size| By Solution Type, By Application Type, By Industry Type, By Brand,By Region and Forecast 2022-2031
Automated Demand Response Management Systems Market Size Growth Analysis By Share, News, Demand, Opportunity 2022-2031