Oil Casing is a type of Steel Pipe used to support the walls of Oil and Gas wells, primarily to ensure the Smooth progress of drilling operations and the normal operation of the entire Oil Well after completion. It can protect the wellbore, prevent formation collapse, control fluid within the well, and so on. As a critical component for maintaining the operation of oil wells, oil casing is widely utilized in the oil industry.

With the acceleration of china‘s urbanization process and the expansion of industrial production scale, the demand for oil in the market has continuously increased, driving the continuous growth of oil production. According to data released by the National Bureau of Statistics, China’s crude oil production reached 204.722 million tons in 2022, growing by 2.9% compared to the previous year. In addition, as oil resources become increasingly scarce, drilling technology contiNues to advance, and the deep layers of oil fields are gradually developed, the drilling depth is continuously increasing, and the complexity of drilling operations is gradually increasing. As an important equipment to ensure the safe progress of drilling operations, oil casing has a broad market demand.

According to the “Market Deep Research and Development Prospect Forecast Report of China’s Oil Casing Industry from 2023 to 2028” released by New Jie Industry Research Center, in terms of market supply and demand, China’s oil casing production exceeded 6 million tons in 2022, with a demand of approximately 4.1 million tons. From the perspective of market size, the market size of China’s oil and gas casing was approximately 21 billion yuan in 2022. From the perspective of market structure, due to the high requirements of the downstream market for product safety, the market share of high-end oil casing currently exceeds 70%, while the market share of mid-to-low-end products is close to 30%.

After a period of development, the number of production enterprises in China’s oil casing industry has continued to increase, the production scale has continued to expand, the product quality has continuously improved, and the gap with international advanced levels has continued to narrow. Currently, oil casing has become one of China’s net export products. From January to September 2023, China’s export value of oil casing exceeded 1.77 billion US dollars, and the main export countries included Oman, Thailand, Egypt, Kuwait, Turkey, Indonesia, Uzbekistan, and others.

Oil casing belongs to specialized equipment for oil drilling and production. The early stage of its production line requires significant c APItal investment. Given the crucial role of its quality in ensuring the safety, production, and environmental protection of oil wells, the requirements of downstream customers for products are also continuously increasing. Currently, enterprises with a complete industrial chain from steelmaking to pipe processing have a strong competitive advantage in the oil casing industry, occupying approximately 50% of the market share. From a global perspective, the main producers of oil casing include National Oil Well, Schlumberger, Shengli Oilfield, and others.

Industry analysts at New Jie stated that with the continuous increase in China’s energy demand and the continuous progress of oil exploration and production, the market demand for oil casing will continue to grow, presenting broad development prospects for the industry. In the context of the continuous improvement of social environmental awareness and the increasing complexity of drilling conditions, domestic oil casing production enterprises need to actively engage in technological innovation, enhance product quality and performance, and increase environmental protection investment to reduce pollution emissions, driving the industry towards high-quality and sustainable development.

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