Oil and Natural Gas Pipe Demand to Grow 11% Annually Through 2022
January 2, 2019 (Investorideas.com Newswire) Demand for oil and natural gas pipe is forecast to grow 11% annually to $15.4 billion in 2022, a strong recovery from severe declines seen during the 2012-2017 period. Growth will be driven by an expected increase in drilling activity as oil prices continue to recover from 2016 lows. Increased well completion in key fields like the Permian Basin is supporting gains for OCTG, while bottlenecks in such productive areas are encouraging pipeline construction. These and other trends are presented in Pipe: Products & Markets, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Growth will also be supported by a modest recovery in pricing. During the 2012-2017 period, weak domestic demand for oil and gas pipe and a surge of steel pipe imports - particularly of OCTG - held prices down. Going forward, producers will likely raise prices for oil and gas pipe due to increased drilling activity and an expected reduction in import competition brought on by the Trump administration's 25% tariff on steel and recent anti-dumping measures.
Demand for pipe overall is forecast to advance 6.6% annually to $51.1 billion in 2022, rebounding strongly from declines posted during the 2012-2017 period. The oil and gas market will remain the largest outlet for pipe through 2022 and is expected to post the fastest growth of any market due to an expected rebound in drilling activity. Increased building construction activity will support demand in a variety of markets, including water distribution, conduit, and DWV pipe. The potable water and storm and sanitary sewer markets are expected to offer the best growth opportunities for plastic pipe, as plastic pipe costs less, is easier to install, and is more resistant to corrosion than metal types.
Pipe: Products & Markets (published 01/2019, 263 pages) is available for $5800 from The Freedonia Group. Please link citations to https://www.freedoniagroup.com/Plastic-Competitive-Pipe.html
About The Freedonia Group, a division of MarketResearch.com - The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Construction & Building Products studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.
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