May 2011 | Welded steel tube & pipe
OCTG demand is largely holding up: Americas Market Analysis
Environmentalists continue to push for a moratorium on drilling in the Marcellus Shale until the effects of “fracking” could be further analyzed and stricter regulations on this drilling practice are instituted.
With the energy market continuing to be seen as one of the bright spots in the US economy, demand continues to be quite strong for OCTG, although its momentum could be faltering slightly. The US drill rig count is still seeing about a 20% gain compared with a year ago. But while still at an impressive 1,830 rigs, that is down slightly from 1,836 early in May, largely due to continued weak natural gas prices. There continues, however, to be advances in rigs drilling for oil, even though the price of crude has fallen to about $98 a barrel, which is still quite high by historical standards. In fact, there continues to be concerns that oil prices remain this high that it could derail the economic recovery.
One question is how OCTG demand will stand up to political pressure. Environmentalists continue to push for a moratorium on drilling...
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