Oil country tubular goods are integral first to drilling, then to production and saltwater disposal. So the same price crash that brought drilling to a halt has evaporated demand for most Oil Country Tubular Goods.
R&D Pipe Company President Ron Underwood and Trident Steel CEO Kevin Beckmann have both seen better times, but neither is certain when those will return, at least for their sector.
Casing in particular is tied directly to drilling, Underwood pointed out. Beckmann noted that the rig count is down 73 percent year-over-year from 2019. That means the casing market has dried up, leaving pipe yards full of unsellable inventory.
“Surface pipe, intermediate strengths, production strengths, it’s all been dried up,” said Underwood. “The mills are suffering, the manufacturers, the people who’ve been importing pipe have had tremendous cutbacks in their need to bring oil country tubular goods into the country.”
*A tremendous thank you to the amazing mills we represent for offering images and support for this article. It is an honor to be a distributor for your companies, and R&D Pipe Company values the professional and personal relationships. Thank you for all you do and for the integrity in which you conduct business.