Environment and Energy
February 14, 2022
Positive Outlook for Energy Tubulars in 2022
Written by Tim Triplett
2022 is shaping up to be a good year for energy tubulars. With the U.S. economy near pre-pandemic levels, demand is up for oil and gas – and the oil country tubular goods (OCTG) and line pipe needed to deliver them. Rising energy prices are spurring increased drilling, while declining steel prices are lowering the costs to manufacture pipe and tube, promising better margins for tubular goods suppliers.
The U.S. Energy Information Administration (EIA), in its February Short-Term Energy Outlook, forecast the Brent crude oil price will average $90 per barrel in February and nearly $88 per barrel for the first half of this year. Oil prices above $70 per barrel generally trigger more drilling activity.
