The increasing demand for seamless steel pipes from the oil and gas sector boosts the growth of the seamless steel pipes market over the forecast period globally. As the oil and gas industry is growing rapidly, the demand for steel pipes is also increasing globally. Seamless steel pipes have more strength and are being used increasingly in industrial boiler applications and the oil and gas sector. These pipes are preferred over others due to their strength, durability, and corrosion resistance. With the growth in the oil and gas sector, many pipelines are expected to be laid around the world, which will boost the demand of the market.
The rising oil prices increase demand for energy spur new development, which increases oil and gas production and requires additional investment in pipeline infrastructure. Demand for fossil fuel is higher, which has led to the rise in exploration & production activities in the oil & gas industry. However, the era of easy oil has ended, and oil reserves are being found at greater depths than their historical counterparts. The deeper depths contain a hostile environment of high temperature and pressure for the pipes employed during drilling activity.
Moreover, the innovative technology of directional drilling requires high strength, flexible pipes. Seamless pipes serve all these purposes. The global demand for oil & gas pipe is expected to increase 5.5% per year, estimated to be 52.45 million metric tons in 2019 as high oil prices and increasing demand for energy spur new development.
Demand for gas pipe has strongly outpaced that for oil pipe, owing to a large part to infrastructure development. Demand for seamless steel pipes has benefited from the construction of new transmission lines needed to transport oil and gas from drilling sites to customers and the need for gathering systems at new drilling sites. The seamless pipe has outpaced welded pipe in recent years, reflecting strong growth for the market majority of the application requiring the seamless pipe's high strength.
Increasing demand and interest for oil & gas globally expand exploration activities and is likely to generate seamless steel pipes. The National Petroleum Council (NPC) in the United States predicted a 50–60% growth in total global energy demand by 2030. The global demand for natural gas is expected to increase by 1.6% between 2016 and 2022, with additional consumption of 370 billion cubic meters by 2022, up from 3630 cm in 2016. According to the International Energy association in 2019, offshore oil's daily production is expected to increase from 26.4 thousand barrels of oil equivalent per day to 27.4 thousand barrels of oil equivalent per day is expected to generate demand for the Seamless Steel Pipes market during the forecast period. Saudi Arabia owns around 18 % of the global proven petroleum reserves and ranks as the largest petroleum exporter. In 2019, the top three crude oil-producing countries were the United States (10.96mb/d), Russia (10.53mb/d), and Saudi Arabia (10.32mb/d).
The wide range of usability of seamless steel pipes in various sectors is the other key driver for worldwide growth. One of the advantages of the pipes is their growing preference. Seamless steel pipes can sustain high pressure. They are generally factory-made using hot working steel. Features such as reliability and durability are prominent factors driving the global demand for seamless steel pipes.
Seamless steel pipes have a wide range of usability, and they are used in the automotive, mining, and construction industries, which drive the manufacturing steel pipe industry. The available range of steel pipes becomes one reason surpassing the demand for residential and non-residential sectors of steel pipes. The replacement of aging pipelines also increases the global demand for steel pipes. Generally, in welded pipes, the welds' points are the weakest for sustaining pressure, in turn damaging the pressure resistance capability of the pipe. In contrast, seamless pipes are tougher and more pressure resistant.
The high resistance to the corrosive substance being transported through the seamless pipe increases the cost-effectiveness and prevents any leakage due to pipe failure, which may cause undesirable incidences. The excellent characteristics of steam-less steel pipes increase usage in various sectors like automotive, aerospace and aviation, power industry, and many more. Furthermore, growth in the pharmaceutical and chemical & fertilizers industries increases their demand for seamless steel pipes. Seamless steel pipes are also used in infrastructure and construction for the supply of water, sewage transport, and so on.
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