Page 14 - ITAtube Journal 32022
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Market information
  Figure 15: US Total Rig Count 4 years up to 25th of November 2022, Source: OilPrice.com
number of rigs from 531 in May 2021 to about 800 end of November 2022 (Figure 15).
Of these 784 rigs, 627 are dedicated for
the extraction of oil and 155 for gas. The growth pattern has slightly calmed down, anyhow demand stays on high level. Efforts to reduce dependence on fossil fuels can hardly be successful in the short term
and can only contribute to decoupling in the medium term. For our pipe industry, however, this means that high energy prices must be expected in the future as well. Luckily these analysts, who were anticipating another surge towards the USD130-140 per barrel range this summer 2022 were wrong, but prices around 80-90 USD are most prob- able. The investments to secure the energy supply will keep the demand and prices for tube products high (Figure 16).
In addition to exploration activities, the need to build new pipeline routes has also increased since the ban on Russian pipe- lines to Europe. In the wake of the attacks on the Northstream pipelines, which released very large quantities of methane as an environmental desaster, it can be expected that the standards for pipelines will become even more demanding. This development offers the manufacturers of large-diameter pipes > 406 mm OD oppor- tunities for interesting business.
The global construction market with about 5% of the global tube market presents another opportunity for pipe manufactur- ers with growth potential. A recent study published by Global Construction Perspec- tive and Oxford Economics, entitled “Global Construction 2030”, forecasts an 85% growth in global construction output to 15.5 trillion by 2030, with three countries, China, USA and India, leading the way and accounting for 57% of global growth alone. Europe, on the other hand, will reduce
its pace of investment. There is room for additional production capacity for struc- tural tubes, especially in India, to follow
the market trend. The tube industry needs to further promote the benefits of tube applications and showcase the architectural perspectives (Figure 17). Tubular profiles are an ideal choice when visible structures
ITAtube Journal December 2022
 Figure 16: Skyrocketing Price of Pipe used for US Oil Drilling, Source: Kallanish Commodities, Bloomberg
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Figure 17: Building with Tubular Structures, Column Trees and “Banana” Trusses,
Source: Civil.IITB




















































































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