Asia Pacific Drill Pipe Market Size is set to witness substantial growth on account of increasing investments in upstream sector along with the growing emphasis on E&P activities to cater the energy requirement. In addition, rising demand for efficient well exploitation technologies coupled with increasing focus on unconventional resources including shale oil and tight gas will drive the industry outlook across the region.
Ongoing rise in population coupled with growing regulatory efforts to reduce import dependency of crude oil will propel the industry growth. For instance, according to Ministry of Petroleum and Natural Gas, India imported 84% of the total crude oil demand in 2018 to deal with the surging energy requirement. Regulatory policies and reforms to increase domestic oil production will further boost the demand of efficient drilling technologies and components including drill pipe.
API drill pipe demand is set witness growth on account of its cost effectiveness, high torque resistance and extensive toughness. In addition, ability to withstand a wide range of pressure and temperature, and capability work under harsh environmental conditions are some of the prominent features further favoring the product deployment across the region.
Premium drill pipe market is anticipated to grow owing to the better suitability of the product for deep & ultra-deep E&P operations along with the rising offshore production. Extended lifecycle, higher strength, and, additional safety margins are some of the paramount features which will enhance the product installations in the forthcoming years.
Onshore drill pipe market will witness substantial growth on account of minimal operational risk, lower capex and increasing rig count across the region. Ongoing exploitation of unconventional sources including shale gas and tight oil will further stimulate the business outlook Moreover, lower transportation and maintenance cost along with the shifting trends toward heavy oil reservoir will augment the product demand over the forecast timeframe.
Shifting focus of oil producers from shallow to deep and ultra-deep E&P operations will substantially enhance the product demand across offshore locations. Increasing penetration of mature onshore reserves will further stimulate the product adoption substantially.
China drill pipe market is set to witness significant growth on account of growing investments for the development of untapped oil & natural gas reserves along with increasing regulatory efforts to enhance the domestic production. As per the IEA in 2019, oil product demand across China reached 617 million tonnes in 2018, which is 3.8% higher than that of 2017 levels. Furthermore, rising demand of natural gas from residential and commercial sector will further propel the business growth across the country.
Key players operating in the market include National Oilwell Varco, Ferrostaal Piping Supply GmbH, RK pipe & supply, Hilong Group, DP-Master, Maharashtra Seamless Ltd., JFE Steel Corporation, Oil Country Tubular Limited, TMK, Vallourec amongst others.