The global carbon steel tubing in oil and gas lift applications market size is set to reach USD 5798.6 million in 2023. Overall sales of carbon steel tubing in oil and gas lift applications are likely to surge at 3.3% CAGR, taking the forecasted market valuation to USD 7992.6 million by the end of 2033.
Demand for high-strength carbon steel tubing is on the rise as new technologies like hydraulic fracturing and horizontal drilling become more commonplace. In horizontal drilling, for instance, the tubing must be malleable enough to curve around obstacles without breaking.
Therefore, there has been a rise in the need for specialized carbon steel tubing to accommodate these specific specifications.
The tube serves as the primary transport mechanism for oil from the well's bottom to the well's surface. The essential component is also isolated from the other well-presented residue. Traditional tubing had many drawbacks that made it impossible for oil and gas companies to ensure the purity of their final products.
Therefore, many companies are making the switch to carbon steel tubing because of its low cost and durability. These tubes can be used more than once, and they last for a long time. Considering these advantages, the demand for carbon steel tubes in oil and gas lift applications is forecast to grow substantially worldwide between 2023 and 2033.
Carbon steel tubes, which are simple to set up and useful for oil and gas extraction, have seen increased demand as horizontal drilling has spread. The oil and gas industry has seen a rise in the demand for carbon steel tubes for lift applications due to the material's superior mechanical performance, corrosion resistance, operating convenience, and safety.
The quality and purity of the final product is of utmost importance to the oil and gas companies. Because conventional tubing fails to preserve the well because it mixes with other residues, oil and gas companies favor carbon steel tubing as an alternative.
Carbon steel tubes are widely used in industry today. Between 2023 and 2033, the global demand for carbon steel tubing in oil and gas lift applications is expected to grow substantially due to an increase in horizontal drilling and the need for strong and long-lasting tube systems.
However, the carbon steel tubes' fragility and the availability of alternatives could stifle oil and gas industry expansion. As a result of technological developments made by well-known firms in manufacturing higher-quality carbon steel tubing solutions, participants in the target oil and gas industry are expected to experience new revenue opportunities over the projected period.
| Attributes | Details |
|---|---|
| Carbon Steel Tubing in Oil and Gas Lift Applications Market CAGR (2023 to 2033) | 3.3% |
| Carbon Steel Tubing in Oil and Gas Lift Applications Market Size (2023) | USD 5798.6 million |
| Carbon Steel Tubing in Oil and Gas Lift Applications Market Size (2033) | USD 7992.6 million |
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According to recent research by Future Market Insights, the carbon steel tubing in the oil and gas lift applications market is projected to expand at a rate of 3.3% during the forecast period from 2023 to 2033. The market outlook could be divided into short-term, medium-term, and long-term.
Short term (2023 to 2025): Oil and gas producers have begun looking into unconventional sources like shale gas and tight oil as conventional reserves are depleted. The high-tech drilling equipment and methods required to reach these unconventional sources rely heavily on carbon steel tubing.
For instance, high-pressure tubing that can stand up to the rigors of the drilling process is required when engaging in hydraulic fracturing (fracking). The demand for carbon steel tubing has skyrocketed as a result of this.
Medium term (2025 to 2028): Demand for oil and gas has been on the rise for several reasons, including rising populations, industrialization, and energy consumption in developing countries.
Between 2018 and 2026, annual global oil demand is expected to rise by 1.2 million barrels, according to the International Energy Agency (IEA). Drilling methods and equipment utilizing carbon steel tubing have had to evolve to accommodate the increased volume of work.
Long term (2028 to 2033): As the need to maximize productivity and cut costs grows, so does the demand for high-performance, long-lasting carbon steel tubing. In the oil and gas industry, where competition is fierce, any strategy that can boost output while cutting costs is welcome. In comparison to other materials, carbon steel tubing excels in strength, longevity, and cost.
Over the last few years, the horizontal drilling technique has garnered huge traction across the world. It is being employed in many oil and gas reservoirs for the optimum extraction of targeted products.
As oil reserves are gradually depleting, companies are looking for new ways to get more oil and natural gas. For this purpose, they are adopting horizontal drilling. Governments are launching new exploration and drilling projects.
Growth of horizontal drilling is in turn creating demand for better tubing solutions such as carbon steel tubing, which can be easily installed and ensure optimum extraction of oil and gas products.
Various features offered by carbon steel tubing make them ideal for lifting oil and gas in horizontal drilling wells. The rising number of horizontal wells is expected to continue to augment the growth of carbon steel tubing in the oil and gas lift applications market over the forecast period.
Principal Consultant
FMI predicts that the market for carbon steel tubing used in oil and gas lift applications is expected to grow at a CAGR of 4.1% in the United States over the next five years. The market in the United States is also expected to hold a 45.3% market share.
Rising energy consumption, leading market players' presence, and increased oil and gas exploration all contribute to the region's expansion.
The United States consumes more oil than any other country. In 2020, the United States consumed about 18.12 million barrels of oil per day (b/d), as reported by the Energy Information Administration (EIA). Furthermore, the over 90,000 production wells in the United States have a positive effect on the market for carbon steel tubing used in oil and gas lift applications.
The market for carbon steel tubing used in oil and gas lift applications in the United States has expanded rapidly because of technological advancements in drilling and production. Increasing government support is also crucial in developing the oil and gas industry throughout the United States.
In recent decades, the United States has shown a strong desire to switch from traditional fuels like coal to shale gas. This has given a tremendous boost to hydraulic fracturing methods for shale. Carbon steel tubing is widely used in fracking for natural gas and oil.
North America, led by the United States, is expected to account for more than 45.2% of the global market due to rising oil and gas consumption and the subsequent rise in the popularity of horizontal drilling.
China's carbon steel tubing in the oil and gas lift applications market is expected to expand at a CAGR of 3.6% over the forecast period, owing to rising government support and rising oil and gas drilling activity.
Now, China has one of the world's highest growth rates. Rapid industrialization and technological progress have sparked a new period of growth in the oil and gas sector.
The nation's energy consumption is increasing at a staggering rate. The government is employing a number of strategies, including the introduction of incentives for domestic oil and gas producers and the exploration of new reservoirs, to meet this energy demand.
The Energy Information Administration (EIA) of the United States reports that in 2019, China's output of petroleum and other liquids reached 4.9 million barrels per day (b/d). Additionally, in 2019, China's NOCs are projected to produce 6.3 Tcf of natural gas.
FMI forecasts a 4% CAGR for the oil and gas lift applications demand for carbon steel tubing in India during the forecast period. Government spending on reservoir exploration is on the rise, and industrialization and rising energy demand are also pushing the oil and gas industry forward.
The growing demand for oil and gas in India is expected to increase the demand for carbon steel tubing. Investment in exploration and production in the Indian oil and gas industry was valued at USD 25 billion in 2022, according to the India Brand Equity Foundation (IBEF).
The Indian government is implementing several programs and projects to boost domestic production and cut down on the country's reliance on foreign oil and gas. For instance, the Indian government sanctioned oil and gas projects in Northeast India totaling 1 lakh crore in September 2021. As a result, leading companies in the market are expected to have enticing growth opportunities.
Carbon steel tubing used for lifting oil and gas can be divided into two groups based on their outer diameters: 60-120 millimeters and 121-250 millimeters. Carbon steel tubing in the 60-120 mm size range is seeing increased demand as it is increasingly used to extract oil and gas from reserves.
Carbon steel tubing is highly recommended for use in deep, challenging oil and gas reservoirs.
FMI predicts that the market for carbon steel tubing used for oil and gas lift applications is expected to continue to be dominated by the externally coated steel tubing segment. This segment is expected to hold a 68% market share in 2023. Because of its many advantages, externally coated tubing is increasingly being used for oil and gas lifting.
Its dual-layer coating offers superior protection against corrosion over time. The coating protects the pipe from the damaging effects of the environment.
Carbon steel tubing for oil and gas lift applications is split up into two distinct markets: onshore and offshore. In 2022, the onshore segment is likely to account for 95% of the total oil and gas industry.
Sales of carbon steel tubing are being driven primarily by an increase in onshore oil and gas drilling projects. Oil and gas can be recovered more easily and cheaply on land. Because of this, onshore reservoirs are getting more attention for oil and gas extraction.
As onshore reserves are depleted, however, attention is shifting to offshore drilling. Countries in Africa and the Middle East are launching a plethora of offshore projects.
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The Canada, United States, and China oil and gas industry are highly fragmented in nature. Leading market players are constantly upgrading their product portfolios. Besides this, they have adopted various organic and inorganic strategies such as mergers, partnerships, collaborations, and acquisitions to dominate the market.
How can Manufacturers Scale their Businesses in Carbon Steel Tubing in Oil and Gas Lift Applications Market?
The projected CAGR of the market by 2033 is likely to be 3.3%.
The projected market value by 2033 is USD 7,992.6 million.
The market is estimated to secure a valuation of USD 5,798.6 million in 2023.
The oil and gas industry is the key consumer of the market.
The opportunities in the market are growing demand for oil and gas.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Outer Diameter 5.1. 60 to 120 mm 5.2. 121 to 250 mm 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Coating 6.1. Internally Coated 6.2. Externally Coated 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Onshore 7.2. Offshore 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Exxon Mobil Corporation 18.2. Royal Dutch Shell Plc. 18.3. Keane Group 18.4. Devon Energy Corporation 18.5. BNK Petroleum Inc. 18.6. Anadarko 18.7. EQT Corporation 18.8. Statoil 18.9. ConocoPhillips Company 18.10. Chevron 18.11. Pioneer Natural Resources 18.12. Repsol USA 18.13. Southwestern Energy 18.14. Cabot Oil & Gas Corporation 18.15. Sanchez Energy Corporation 18.16. EOG Resources, Inc. 18.17. China National Petroleum Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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Carbon Steel Tubing in Oil and Gas Lift Applications Market
