Oil & Gas Casing & Tubing Products Procurement Category Market Research Report from IBISWorld has Been Updated

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Over the three years to 2017, the price of oil and gas casing and tubing products is projected to rebound due to anticipated growth in production costs, as well as rising downstream demand. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Oil & Gas Casing & Tubing Products in its growing collection of procurement category market research reports.

IBISWorld industry market research
The price of oil and gas casing and tubing goods has fallen on the back of receding input costs

The buyer power score for oil and gas casing and tubing goods is 3.5 out of 5, which indicates moderate buyer leverage during negotiations. Prices growth has subsided in recent years, strengthening buyer negotiation power. Also, rising import penetration levels and the fragmented nature of the market have intensified price-based competition, favoring buyers. Keeping buyer power from being stronger, however, is the low availability of direct substitutes, which has kept demand for casing and tubing steady over the three years to 2014. In addition, says IBISWorld research analyst Agiimaa Kruchkin, “The noteworthy level of recent price volatility and high switching costs have significantly undermined buyer power.” Therefore, despite the ongoing challenges, buyer power has strengthened in the three years to 2014.

Following the recession, domestic oil drilling and gas exploration activities rebounded strongly on the back of a reviving economy, boosting demand for oil country tubular goods (OCTG), including casing and tubing products. Understandably, suppliers have benefited from the recovery in the downstream markets. Meanwhile, “external demand drivers have risen along with the rebounding activity in buyer markets,” says Kruchkin. “For example, the industrial production index and the world production of oil have trended upward during the past three years.”

Offsetting the demand-induced price growth are falling input costs. Manufacturers of oil and gas casing and tubing goods require a variety of raw material inputs, including steel, aluminum and titanium. In the three years to 2014, the world price of steel has dropped, cutting purchasing costs for suppliers. As a result, many vendors in the market have passed down cost savings to buyers in the form of lower prices, fueling buyer power. Current vendors include US Steel Corp., National Oilwell Varco Inc., and Sandvik AB. For more information, visit IBISWorld’s Oil & Gas Casing & Tubing Products procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of oil and gas casing and tubing products, which fall under oil country tubular goods (OCTG). Casing is a pipe used in well completion that stabilizes the wellbore, controls well pressure and protects fresh water formations. Types of OCTG casings include conductor, surface, production, liner and protection varieties. Tubing is placed in the well after the casing is cemented in place, and is used to transport oil and gas from the production site to surface facilities for further processing. This report excludes oil country couplings, pipe coatings, pup joints and thread protectors.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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