Page 14 - ITAtube Journal 1 2024

Market information
Figure 14: US Crude Oil Production since 2020 Source: OilPrice.com
12 Mio. Bbl./day in September 2023 to 13,3 Mio. Bbl./day in March 2024 (+ 11%) by increasing the number of drilling rigs and their productivity (Figure 14).
The number of US drilling rigs was enlarged to about 800 by December 2022 (Figure 15). In 2023 due to declining oil prices, the number of rigs was reduced again to 618 rigs. Of these 618 rigs, 496 are dedicated for the extraction of oil and 118 for gas. Furthermore, the USA has relieved some of the oil export sanctions on Venezuela. Nev- ertheless, the US oil exports have reached a new all-time high with about 5,5 million Bbl./day.
Efforts to reduce dependence on fossil fuels can hardly be successful in the
short term and can only contribute in
the medium term. For our pipe industry, however, this means that crude oil prices can be expected this year at around 80-90 USD/Bbl. The investments to secure the world energy supply will keep the demand for tubular products high. Another driving factor is the record high global LNG produc- tion. Katar, USA and Australia have record high LNG production. Consequently, the demand for OCTG products remain high. The LNG supplies ease the energy crisis especially in Europe to compensate the stopped Russian pipeline gas supplies.
Carbon Capture Utilisation and Storage (CCUS) is an upcoming interesting market for higher alloyed tubes. In CO2 capture and sequestration, carbon dioxide is sep- arated from combustion gases and then stored indefinitely in deep underground layers of rock without a container. For deep drilling and transportation of CO2 into these deep underground layers of rock, increasing volumes of tubes and pipes
are required. USA, China and Middle East are the centres for development following this technology. The project volumes of CCUS will achieve considerable volumes 2026 and the following years (Figure 16). CCUS refers to a suite of technologies that can play an important and diverse role in meeting global energy and climate goals. In addition to exploration activities, the need to build new pipeline routes has also increased since the ban on Russian pipe- lines to Europe and the strategy towards replacing natural gas by hydrogen. Globally
ITAtube Journal April 2024
Figure 15: US Total Rig Count 5 years up to 14th of March 2024 Source: OilPrice.com
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Figure 16: Positive outlook for CCUS projects, tightening tube supply in high alloy tubulars
Source: Energy Global Data