Market players within the
US energy pipe industry, including those involved with the buying and selling of
US domestic oil country
tubular goods (OCTG) casing and
tubing, are anxiously awaiting the results of the
US presidential election.
The results are expected to be announced this evening.
Secretary of State Clinton has stated that she supports strict regulation of the oil and gas industry; she further opposed the expansion of drilling efforts in Alaska. Donald Trump, on the other hand, has dismissed the idea that drilling and fracking have an impact on climate change. He staunchly opposes regulation in when it comes to drilling for oil and natural gas.
Thus, the outcome of the presidential election is expected to have a drastic impact on
US domestic and import energy pipe markets.
In terms of current pricing, prices for import oil country
tubular goods
tubing from
Korea in the
US domestic market remains unchanged in the past week, at $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt), DDP loaded truck in
US Gulf coast ports.
In terms of current rig counts, the most recent data from Baker Hughes indicates that for the week ending Nov. 4, 2016, the
US rotary rig count increased by 12 to 569. The number of rotary rigs drilling for oil was up 9 at 450. There are 122 fewer rigs targeting oil than last year.
Rigs directed toward natural gas were up 3 at 117. The number of rigs drilling for gas is 82 lower than last year's level of 199.
Year-over-year oil exploration in the U.S. is down 21.3 percent. Gas exploration is down 41.2 percent.