According to the Graphical Research new growth forecast report titled “Asia Pacific Drill Pipe Market Size By Product (API, Premium), By Application (Onshore, Offshore), Industry Analysis Report, Regional Outlook (China, India, Indonesia, Malaysia, Thailand, Australia, Vietnam), Competitive Market Analysis & Forecast 2020 – 2026” to Flourish During 2020-2026. The market is anticipated to witness as upsurge on account of rising investment across upstream sector coupled with growing inclination toward exploration and production of unconventional resources. In addition, ongoing demand for efficient and effective well exploitation technologies along with increasing emphasis toward E&P activities to cater to rising energy demand will boost the business scenario.
Asia Pacific premium drill pipe market size is estimated to grow on account of its applicability for ultra-deep-water and deep-water exploration as well as increasing offshore oil production across the South China sea. For instance, under New Policy Scenario IEA has projected that offshore oil & gas production will reach 57 mboe/d by 2040. Moreover, extended product lifecycle, high yield strength and high fatigue resistance are key parameters which positively influence product deployment across extreme geographical terrains.
Rising energy consumption demand across developing regions along with favorable government norms toward self-reliant crude oil E&P will boost the industry growth. According to Petroleum Planning and Analysis Cell, in 2019 crude oil import across the India was increased by 5% when compared to 2018. In addition, increasing government and private investments toward domestic oil & gas production will complement the product demand.
API drill pipe demand is anticipated to grow on account of cost effectiveness, extensive toughness and high torque resistance properties. Ability to withstand high pressure and temperature as well as effective workability under extreme environmental condition are prominent features favoring the product deployment across offshore oil & gas production sites. In addition, low product cost when compared with other available alternatives will positively influence the product demand.
Onshore Asia Pacific drill pipe market is projected to witness substantial growth on account of increasing rig count, minimal operational risk and lower capital expenditure. Ongoing unconventional exploitation programs across Chinese Sichuan basin and Canning & Beetaloo basins of Australia will further drive the business outlook. Furthermore, paradigm shift toward extraction of shale and tight oil followed by adoption of technological advanced drilling techniques will boost the industry scenario.
Shifting exploration and production trend from shallow to deep and ultra-deep waters by various oil producing companies will substantially fuel the product demand. Rapid urbanization followed by growing investment across the industrial sector will escalate the hydrocarbon demand which in turn will complement the Asia Pacific drill pipe industry. Lower transportation & maintenance cost coupled with growing inclination toward heavy oil reservoir will further drive the product demand.
China drill pipe market will witness significant growth owing to growing investments toward development of untapped oil and natural gas reserves coupled with favorable government programs to enhance the domestic production. According to IEA in 2019, oil product demand across the region reached 617 million tonnes in 2018. Moreover, rising natural gas demand across residential, commercial and industrial applications will propel the business growth.
However, impact of COVID-19 across the region has restricted growth on the overall industry owing to shutdown of various manufacturing plants as well as delay in E&P projects. The pandemic has impacted major world economies across Asia Pacific, Americas & Europe where numerous industries including manufacturing & construction and almost all aspects of the supply chain continue to be impacted.
Eminent players operating across the industry includes Varco, National Oilwell, RK pipe & supply, Ferrostaal Piping Supply GmbH, DP-Master, Hilong Group, JFE Steel Corporation, Maharashtra Seamless Ltd., TMK, Oil Country Tubular Limited and Vallourec. Ongoing mergers and acquisitions along with introduction of technological advanced products will fuel the business scenario.