Report : North America and South America Drill Pipe Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Product (API Grade and Premium Grade) and Application (Onshore and Offshore)
Rising Exploration and Production Activity to Provide Growth Opportunities for Drill Pipe Market during 2021–2028
The North America and South & Central America drill pipe market is expected to grow from US$ 554.75 million in 2021 to US$ 737.4 million by 2028; it is estimated to grow at a CAGR of 4.1% from 2021 to 2028.
The increasing exploration and production (E&P) of oil and natural gas in developing countries such as Brazil and Guyana is expected to create opportunities for drill pipes in the coming years. The rising discovery of new offshore oil and gas rigs in South America is expected to bolster the E&P activities. In June 2021, ExxonMobil announced that they have discovered Longtail-3 well offshore in Guyana. Similarly, in May 2021, Shell Offshore, Inc. discovered multiple oil rigs in the deepwater of the US Gulf of Mexico. In addition, Petroleos Mexicanos (Mexican state-owned petroleum company) discovered a multibillion-barrel oil field in Tabasco, located at the southern part of the Gulf of Mexico. In another instance, Total and Apache Corporation made a significant oil and gas field discovery at the Keskesi East-1 well in Block 58 off the coast of Suriname. Thus, the discoveries of offshore rigs in developing countries of North America and South and Central America are expected to create lucrative opportunities for oil and gas upstream companies, thereby boosting the demand for drill pipes for E&P activities in the regions.
Impact of COVID-19 Pandemic on Drill Pipe Market
The ongoing COVID-19 pandemic has had a severe impact on the growth of the drill pipe market. The pandemic led to various challenges for the oil & gas sector. The operations were shut down for a certain period during the lockdown, while post-lockdown the market started to regain its momentum with rising demand. Major strategic developments are taking place in the drill pipe market. MNCs are investing more in this segment to leverage high demand from consumers worldwide.
TMK Group; National Oilwell Varco, Inc.; DP-Master Onshore (S) Pte Ltd.; Drill Pipe International, LLC; Premier Drill Products, LLC; Shanghai Hilong Drill Pipe Co., Ltd.; Tejas Tubular Products, Inc; Texas Steel Conversion, Inc; Hunting PLC; and Universal HDD Company are among the key players profiled during this market study. In addition, several other essential market players have been studied and analyzed to get a holistic view of the North America & South and Central America drill pipe market and its ecosystem.
Drill Pipe Market — by Geography (2020–2028, %)
The drill pipe market is segmented based on product and application. In terms of products, the drill pipe market is bifurcated into API grade and premium grade. API grade drill pipes are the new pipes, thus relatively it is more reliable in terms of strength and durability. API grade premium drill pipes are the used drill pipe which meets the industry norm that the remaining wall shall not be less than 80% of the specified wall of the new drill pipe. Based on application, the drill pipe market is further segmented into onshore and offshore. The onshore segment comprises activities of drilling deep under the surface of the earth. The offshore segment includes drilling activities underneath the seabed. The increasing E&P activities, specifically in the US, Mexico, and Brazil, are among the factors driving the market growth.
North America is the largest producer of oil & gas. Hence, the region is holding largest market share. North America has accounted 84.6% of total drill pipe market share in 2020. Further, in SAM region drill pipe market is growing with significant rate and expected to account around 16.6% of market share during the forecast years.
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