54
Tube Products International July 2014
Steel tubes
Report predicts
growth for US
onshore pipelines
Demand for onshore pipelines will
increase in the United States, providing
a positive outlook for the North American
oil and gas industry, according to a new
report conducted by Europe’s second
largest steel producer, Tata Steel.
The study, produced by the company’s
energy and power division, points to a
rise in environmental concerns shifting
energy demand towards natural gas
and the continued growth in shale
as the main drivers for increased
investment in production and transport
infrastructure.
The report also says the reduction
in the price of natural gas combined
with improved drilling technology will
continue to maintain high oil production,
resulting in further demand for pipelines.
Richard Broughton,
Tata Steel’s com-
mercial manager for
energy pipelines, said,
“US shale has been a
game changer for the
entire North American
industry, potentially
putting the US in a position to export
energy for the first time. However, there
is still a massive need for investment in
infrastructure, particularly in production
and transportation if this potential is to
be realised.”
Overall the report paints a positive
outlook for the North American oil
and gas industry, with the findings
suggesting that while a slow economy
has had an effect on production activity
in recent years, the increased investment
in large-scale projects is now pointing
the market towards an upturn.
Mr Broughton added, “There is no doubt
the slow economic conditions have hurt
the industry, particularly the supply
chain. We are beginning to see positive
signs in both the onshore and offshore
sectors with deepwater projects in the
Gulf of Mexico gathering pace once
more.
“This upturn means that as an
industry we must continue to invest in
infrastructure, particularly in oil and gas
transportation, which will be crucial to
support the increased activity.”
The report follows encouraging data
about the Americas overall, with recent
estimates suggesting Brazil is likely to
become a net oil exporter by 2015, and
recent discoveries will mean production
in the region will outpace demand
growth.
Martyn Curnow, Tata Steel’s energy and
power sales manager for the Americas,
said, “The South American market, and
in particular Brazil, includes some of the
most promising opportunities for the
global industry, with many significant
energy reserves and discoveries in
recent years. Given the deepwater
geography of these fields, developing
the correct infrastructure will be crucial.
“Tata Steel continues to remain at
the forefront of the deepwater line
pipe industry, with Brazil in particular
providing an opportunity for Tata Steel
to underline its technical leadership in
some of the world’s most challenging
environments.”
Tata Steel Europe Ltd
– UK
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