Global Carbon Steel Tubing in Oil & Gas Lift Applications Market is anticipated to be Valued at US$ 4,799.5 Mn by the end of 2018

Global Carbon Steel Tubing in Oil & Gas Lift Applications Market is anticipated to be Valued at US$ 4,799.5 Mn by the end of 2018

Future Market Insights delivers key insights on the global carbon steel tubing in oil & gas lift applications market in its latest report titled ‘Carbon Steel Tubing in Oil & Gas Lift Applications Market: Global Industry Analysis (2013–2017) and Opportunity Assessment, 2018–2028’. The long-term outlook of the global carbon steel tubing in oil & gas lift applications market remains positive and the market value is expected to increase with a CAGR of 3.9% during the forecast period (2018–2028). Among the end use segments of the carbon steel tubing in oil & gas lift applications market, the onshore segment is expected to expand with a significant CAGR in terms of value as well as volume over the forecast period. The global sales of carbon steel tubing in oil & gas lift applications is estimated to be valued at US$ 4,799 Mn by the end of 2018. The North America carbon steel tubing in oil & gas lift applications market is estimated to account for a value share of 44.7% in the global carbon steel tubing in oil & gas lift applications market by 2018 end and it is anticipated to retain its dominance throughout the forecast period. In this report, Future Market Insights throws light on drivers and restraints likely to impact the carbon steel tubing in oil & gas lift applications market during this period.

Recovery of the Oil & Gas Industry from the Slowdown

In the recent past, the slowdown in the oil & gas industry had subsequently resulted in a drop in drilling and exploration activities in the oil & gas industry, owing to which the demand for steel tubes had also taken a hit. That apart, the excessive production of steel and a significant drop in its demand had also severely impacted the steel pipe manufacturing industry. For instance, drilling activity across the globe reduced by more than 30% in 2016 as compared to 2015, especially in the U.S., where more than a 45% decline was registered.

Recently, it has been observed that the oil & gas industry is channelizing efforts to facilitate recovery from the slowdown. For instance, the agreement between OPEC and some non-OPEC countries in 2016 to cut down production and accelerate balance between supply and demand alongside reducing excessive inventory levels have reinforced oil prices. Also, increasing shale drilling activity in the U.S. and Canada in 2017 further boosted the demand for steel tubes.

Thus, the aforementioned strategy to cope up with the economic slowdown in the oil & gas industry is expected to, in turn, increase the demand for steel tubes across the globe during the forecast period

Replacement of Legacy Tubing with Carbon Steel Tubes

Tubes function as a medium of conveyance for important liquids and gaseous materials over long distances and, owing to various external factors, are susceptible to deterioration over time. Unchecked damages in aged pipelines can lead to leakages, resulting in loss of materials as well as pollution to the environment. The 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 United States, which are replacing their older worn-out tubes with new high strength plastic tubes at the rate of around 40,000 kilometres on a yearly basis, according to a 2017 report by the American Gas Association. Cast and wrought iron tubes, the oldest known pipe material type used for the purpose of material transportation, especially in the oil and gas sector, are being replaced by steel tubes.

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