Environment and Energy
November 10, 2017
No Big Bump Forecast for Oil or OCTG
Written by Tim Triplett
Oil prices have topped $63 in recent weeks, up from $43 in June, but don’t expect a big uptrend in the price per barrel in 2018. Experts expect oil to continue trading in a tight range, keeping demand for oil country tubular goods in check at least through the first half next year.
High energy demand, increased exploration in unconventional reserves, new technology such as horizontal drilling, and the rise in the number of wells per drill rig are all positive long-term developments for OCTG suppliers. Oilfield services company Baker Hughes reported that as of Nov. 10, the U.S. rig count was at 907, up by 9 rigs from the prior week and up 339 from this time last year. In Canada, there are currently 203 active rigs, up by 11 from last week and up by 27 from last year.
