The Oil Country Tubular Goods (OCTG) industry relies on many market factors, with oil prices not surprisingly being the primary indicator. As the price of crude oil rises or falls, producers cap or commission wells accordingly. A balance between the cost of production and a fair market price keeps OCTG producers on their toes. At the same time, imported goods also affect their forecasts. MSI Pipe Protection Technologies provides insights on protecting your oilfield products and investments.
Important production stats continue to drive the need for protecting oilfield products
In July 2017, there were 958 active wells producing oil in the US. And while energy consumption is on the rise globally, two years later, that number dropped to 784 (a decrease of 18% over that period). Earlier in 2019, Goldman Sacks forecasted that crude oil would reach $75 per barrel by June, but that didn’t come to fruition. Consequently, the real price never rose above $66 so far this year.
Operational Changes and Efficiencies can Assist Producers
Many manufacturers aren’t speculating on government interventions; instead, they are opting to produce only in accordance with valid, confirmed orders. Many reasons inform this decision, not least of which are the effects that storage, handling, and transport of these goods entail. When precision manufactured steel goods remain in storage for extended periods, they are prone to degradation or damage.
Imported OCTG products from Asia (reaching record numbers in 2017) creates a further downward trend for producers. The market’s volatility and uncertainty of finding consumers for their goods, however, leave manufacturers looking to maximize efficiencies. At the same time, many remain ready for any upward trend that may arise. After all, the crude oil price did reach a high of $76 for a brief period in October last year.
A key method for reducing the operational costs of oil producers and oilfield products (and something OCTG manufacturers can adopt) is protecting their investment into the infrastructure needed to commission new wells or return wells to service. With appropriate protection, equipment such as tubing, casing, perforating guns, downpipes, sucker rods, and pumps can remain protected for long periods, ensuring the investment doesn’t become a wasted expenditure.
Pipe Protection Components that Increase the Lifecycle of OCTG
To increase the lifespan of OCTG components, innovative, durable protectors allow for better storage and handling, as well as rigid support during transport of the equipment. This reduces exposure to the elements and impacts and ensures the integrity of the investment over long periods of disuse.
Pipe and OCTG Protective devices include:
- Thread protectors for every type of tubular required, as well as custom, fabricated designs
- Accessories such as bumper rings, lifting bails, pipe chocks and stabbing guides
- Pipe handling equipment including packaging frames and tubular handling systems
By employing these protective approaches to your OCTG investments, your company can survive a volatile market. Protecting your oilfield products ensures reliable operations and the integrity of your equipment during every stage in the production cycle.
To help secure your OCTG infrastructure today, contact MSI Pipe Protection Technologies to discuss your protection requirements.