business & market news
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Tube Products International October 2012
Tube industry booming in Oklahoma
In 2009 Oklahoma ranked eighth in the
United States in terms of total energy
production. More than 95%of that energy
came in the form of gas (81%) and oil
(15%). In 2011, Oklahoma produced
more than 74 million bbl of oil and slightly
under 1.9 Tcf of natural gas, maintaining
its status as one of the nation’s leading
energy producing states.
According to independent studies
cited in Governor Fallin’s Oklahoma
First Energy Plan, in 2009, production
and drilling activities supported
approximately one-third of Oklahoma’s
gross state product, and in fiscal
year 2011, gross production tax
collections accounted for nearly $1bn.
The industry directly supports more
than 71,000 jobs, representing almost
3.5% of the state’s workforce, and
industry activity combines to support
nearly 300,000 Oklahoma jobs, or
almost 15% of the workforce. This
means a business-friendly climate that
understands and appreciates the role of
traditional energy, which translates into
tremendous opportunity for business
growth in the pipe/tubulars industry.
Oklahoma is home to Chesapeake
Energy, Devon Energy, Continental
Resources and SandRidge Energy, four
of the nation’s leading energy companies
and pioneers in developing the
unconventional energy resources that
have reshaped America’s energy future.
In addition to Oklahoma’s leading
exploration and production companies,
there are presently over 200 oil field
service companies located throughout
the state. These companies, which
service the oil and gas sector in state
and in surrounding states, include
three major manufacturers of high
quality tubular products for the oil and
gas industry which operate mills/heat
treat and threading facilities: Paragon
Industries, headquartered in Sapulpa; a
subsidiary of Vallourec & Mannesmann
Tube Corporation in Muskogee; and
TMK-IPSCO, which has a seamless and
ERW mill in Catoosa.
More than 39,000 miles of pipeline form
an intrastate gathering and distribution
network for oil and natural gas transport
throughout the state. For example,
two Tulsa-based energy companies,
ONEOK and Williams, are engaged in
natural gas gathering and processing,
natural gas pipelines and distribution of
natural gas liquids.
Horizontal drilling and hydraulic fracturing
have unlocked new resource potential in
shale plays throughout the United States,
dramatically changing the future of energy
in America. According to Oklahoma
secretary of energy, Mike Ming, “The
US is experiencing a revolution in new
energy supplies of both oil and natural
gas that began to really materialise in
the mid-2000s. In January 2012, US
monthly gas production reached an
all-time high.” This energy boom has
translated into business opportunities
for pipe/tube manufacturers and service
providers who have been supporting the
unconventional resource plays across
the country.
In addition to newfound supplies from
the resource plays, Oklahoma is seeing
revitalised potential from plays many
considered played-out. For example,
in the Granite Wash and the Cleveland
and Tonkawa tight sand formations, in
north-western Oklahoma’s Anadarko
basin, producers are unlocking
enormous new supplies where only
marginal production could be achieved
with traditional vertical wells. The key
has been horizontal well technology
and tertiary, or enhanced oil recovery
(EOR) efforts.
CO
2
EOR potential, for example, offers
recoverable reserves from estimated
at more than 20 billion bbl, an amount
greater than all the oil that has been
produced in Oklahoma since 1900.
The area of focus today for pipe
manufacturers and suppliers in
Oklahoma is fracking. While this
process has been in use for well
over 50 years, the technology is still
evolving and improving. One of the key
challenges for oil and gas companies
is to determine the optimum type of
pipe and connections that will be able
to withstand the elevated stresses
associated with this type of energy
extraction process. This in turn will
drive innovation for the pipe making
process.
“With all that is happening in Oklahoma’s
oil and gas sector, the state is a good
proving ground for pipe product
manufacturers,” commented Mr Ming.
Article supplied by
The Pont Group
– USA
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Tel: +86 510 85069506
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E-mail:
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Oklahoma
secretary of
energy, Mike Ming
