North America and South America Drill Pipe Market

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 rising adoption of innovative technologies such as robotics in offshore and onshore drilling activities is driving the market. Moreover, advancements in automation drilling technologies are increasing the efficiency of exploration and production activities at oil rigs and subsequently bolstering the demand for drill pipes. Robotic drilling machines automate the repetitive and risky tasks of connecting drill pipes as they are shoved through miles of ocean water and oil-bearing rocks. This automation improves the work efficiency and reduces downtime and operating cost for the drilling companies along with improved safety for workers at oil rigs. For instance, in June 2019, BP Alaska implemented drilling automation technology at its Parker Drilling’s Arctic Alaska Drilling Unit (AADU), Rig 272. The drilling automation system provided the company with an improved drilling-speed-focused automation business model of the downturn. BP Alaska saved approximately 4 min per intermediate hole-section connection and 2 min per production hole-section connection. In addition, automated robotic machines application includes remotely operated aerial drones, automated underwater vehicles, and robotic drills at oil rig sites. Thus, the adoption of drilling automation technology among oil & gas exploring companies will increase their operational efficiency and is also expected to help them work on multiple oil rig projects. This factor will fuel the demand for drill pipes as the number of projects is increasing in North and South and Central America.    

Impact of COVID-19 Pandemic on Drill Pipe Market

The COVID-19 pandemic continues to negatively influence the overall oil & gas industry owing to considerable disruption in the industry supply chain activities, coupled with several countries sealing their international trade in the wake of the pandemic. The pandemic has had implications on offshore drilling activities too, as oil prices and demand for oil and gas have declined due to a nearly global shutdown. Consequently, the discontinuation of oil and gas production activities has disrupted the demand for all the related products and services.

Several countries experienced a significant negative impact in their demand for oil and gas due to COVID-19.  Hence, the drill pipe market witnessed a substantial decline in demand during the early months of 2020. However, the demand resumed upon the continuation of economic activities. Thus, the global market is gradually recovering its demand for oil and gas. Subsequently, the demand for drill pipes is also gradually increasing, and the market is bouncing back.

Lucrative Regions for Drill Pipe Market

North America and South America Drill Pipe Strategic Insights

Strategic insights for the North America and South America Drill Pipe provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

North America and South America Drill Pipe Report Scope

North America and South America Drill Pipe Regional Insights

The geographic scope of the North America and South America Drill Pipe refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Market Insight – Rising Trend of Horizontal Directional Drilling (HDD)

The rising trend of horizontal directional drilling (HDD) using drill pipes has reduced the downtime of drilling rigs, which, in turn, is expected to propel the drill pipe market growth. HDD has gained traction during the last few years owing to its versatility in the drilling of small-sized rigs for oil and gas, utilities, pipe installation, and others. HDD is one of the most specialized methods for installing underground conduits with minimal damages to the surrounding ecosystem. Besides, the fact that HDD techniques ensure more precision over vertical maneuvering methods is also poised to stimulate the growth of the market during the forecast period. Further, HDD techniques require fewer boreholes to be drilled. In other words, HDD machines can install multiple pipes through a single surface location, which means the surface area of land to be drilled is reduced. Thus, HDD is a flexible, cost-effective, and environmentally friendly alternative to traditional drilling methods, and now, it is trending among oil & gas exploration and production companies to use HDD for drilling oil wells and rigs.

Product Segment Insights

In terms of type, the drill pipe market is bifurcated into API grade and premium grade. API grade drill pipes are new pipes that are unused, thus relatively it is more reliable in terms of strength and durability. The premium class drill pipes in API grade are the used ones that meet the industry norms of the remaining wall shall not be less than 80% of compare to the new and unsued drill pipe. In general, drill pipes are tube-shaped conduits made of alloy or composite materials that are fitted with specially made threaded ends known as tool joints. Drill pipes are hollow thick-walled pipes. The basic purpose of a drill pipe is to provide a connection between the surface equipment for drilling purposes. 

Drill Pipe Market, by Product – 2020 and 2028

North America and South America Drill Pipe Strategic Insights

Strategic insights for the North America and South America Drill Pipe provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

North America and South America Drill Pipe Report Scope

North America and South America Drill Pipe Regional Insights

The geographic scope of the North America and South America Drill Pipe refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Application Segment Insights

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 exploration & productin (E&P) activities, specifically in the US, Mexico, and Brazil, are among the factors driving the market growth.

Strategic Insights

The players operating in the drill pipe market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

• In March 2021, TMK signed an agreement with the largest oil and gas company in Uzbekistan—JSC Uzbekneftegaz. Through this agreement, both companies intend to work jointly on oil and gas exploration projects in the Republic of Uzbekistan.
• In December 2020, NOV, Inc., launched H2Shield, a new drill pipe for deep wells in sour environments.

Drill Pipe Market – by Product

• API Grade
• Premium Grade

Drill Pipe Market – by Application

• Onshore
• Offshore

Drill Pipe Market – by Region

• North America
  • US
  • Canada
  • Mexico
• South & Central America
  • Brazil
  • Argentina
  • Rest of SCAM

Drill Pipe Market – Companies Profiles

• TMK
• National Oilwell Varco, Inc.
• DP-Master Manufacturing (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
• Universal HDD Company