Baker Hughes last week reported the total US rig count had risen to 1,063, while the number of rigs drilling for oil had risen to 869. The overall rig count is up by 14.5 percent, year-over-year, while the oil rig count has risen by 17 percent from the same reporting period in 2017.
Yet despite the strong rig count, US J55 ERW OCTG prices have remained stable, at $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, with market activity being described as sluggish, due to heavy order placement that took place in the early part of the year.
And while current market activity is less-than-exciting, the overall forecast for the OCTG market in the next few years is positive.
According to an October 16 press release from Absolute Reports, “The ever-increasing demand for energy and resulting increased energy production is one of the biggest drivers for the increasing demand of oil country tubular goods. The OCTG market in North America is expected to be driven in future, majorly by new well drilling and an expanding producing well base.”
Sources close to SteelOrbis agree, noting that current oil barrel prices for Brent Crude, which were recorded at $80.45 earlier today, continue to add strength to the energy pipe market.