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The worldwide economic downturn that took place starting in 2008 had the effect of driving oil and gas exploration in both the United States and Russia. Rig counts went up and the expansion of shale drilling increased demand in both these places for OCTG steel Jake Arrieta Jersey , pipe, and proprietary and premium connections. Furthermore, changes in Russia's oil taxation process only added to the effect of enhanced drilling operations in terms of increasing demand for OCTG pipe and other OCTG products. The end result today is, no matter where in the world your project is located you depend more than ever on your OCTG supplier to keep your project running.



Rig Count Increased Even During the Worldwide Economic Downturn



A spike in oil prices in 2008 resulted in an increase in global rig count, despite the economic downturn. With China in particular increasing its demand for petroleum products, increased drilling took place in spite of a drop in demand in the United States and other countries. With conditions improving Miguel Montero Jersey , the U.S. and many other companies are continuing to focus on increased production to keep up with worldwide demand for fuel products. Petroleum companies worldwide are boosting drilling activity to keep up with rising demand, and the result is higher worldwide consumption of OCTG products.



Demand for OCTG Pipe and Steel in the Middle East



Currently the United States is the largest consumer of seamless OCTG products in the world, with China and Russian the second and third biggest OCTG consumers. End use demand for OCTG in the Middle East, however, has a different pace due to market domination by Saudi Aramco, Sonatrach Anthony Rizzo Jersey , and other national oil companies in the region. Furthermore, OCTG manufacturers have to go through a lengthy approval process in order to be able to supply national oil companies in the Middle East. The proprietary and premium connection markets in the Middle East are already dominated by a handful of suppliers, but demand is high enough elsewhere to keep OCTG suppliers busy.



South America and OCTG Products



In South American markets like Brazil, as well as Western African markets, there is great long term potential for U.S. producers of OCTG products, and the potential is even greater when the U.S. dollar weakens against other currencies. The long and the short of it is Addison Russell Jersey , OCTG suppliers have a lot on their plates at the moment. When it comes to your project, you have to have your OCTG products on time in order to keep projects going according to schedule, and your OCTG supplier is as vital as ever to your productivity.



Demand is Strong: Can Your Supplier Keep Up?



Finding the right supplier of OCTG products can mean the difference between a project that proceeds as intended and one that must deal with down time and lost productivity. Your OCTG product supplier should have a worldwide network of mills as well as logistics experience that gets products to where they are needed. Whether you need a one-time shipment or multiple "just in time" shipments to keep storage and carrying costs under control, your choice of supplier is critical to your success.




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