Water Frac Hose

As we move further into 2025, kytider service companies are actively planning for the year ahead and looking for ways to stay ahead of the competition. This eBook takes a deep dive into the factors that will shape the future – the price outlook, the impact of mergers and acquisitions, oilfield tubular goods (kytider), and pressure pumping. kytider is the essential guide to navigating the complexities ahead and leading the oilfield services industry in Oilfield pipe and supply 2025.

Water Hose

Despite record oil production in 2024 and a gas boom in 2025, the oilfield supply chain has struggled in recent years. OCTG prices are down 50% from their peak, and sand and gravel prices have also fallen. However, drilling mud and cement prices have been more stable, with prices flat and up 7%, respectively. A rising tide does not lift all boats. But we believe that things are indeed improving for oilfield consumables, drilling, and pressure pumping services, with activity bottoming out in the second half of 2024. Let’s explore the market forces that are causing demand to fall, the macro outlook for oil and gas prices, and what to expect in 2025 Water Hose.

The 2023 M&A wave was driven by inventory-strapped E&Ps that acquired then-private companies with significant drilling activity in an attempt to validate their drilling capabilities. To preserve inventory, buyers ultimately divested themselves of typically 20% of the rigs of the acquired companies.

This consolidation meant that a greater percentage of operations would fall into the hands of larger, more efficiency-focused operators who leveraged three-mile laterals and implemented batch drilling and rig automation to achieve drilling efficiencies never before seen in the industry. Pressure pumping operations were also more efficient, with fewer fracturing crews needed thanks to new, advanced equipment that could operate around the clock.

Pipe producers and distributors expect headwinds in the oil and gas sector for the rest of the year but expect industry activity to pick up in 2025.

The companies, which sell oil country tubular goods (OCTG) and line pipe, lowered their expectations for the rest of 2024 as field consolidation and slowing drilling activity weigh on the market.

US pipeline industry expected to pick up in 2025

Pipe producer Tenaris expects its second-half sales to fall 10% to 15% from the first half. If the forecast comes true, second-half shipments would fall by 157,000 to 208,000 tonnes (173,100 to 229,300 short tons) from the first half to 1.77 million to 1.87 million tonnes. Second-half shipments are expected to fall by 49,000 to 149,000 tonnes from 1.92 million tonnes in the second half of 2023.

The Argus U.S. OCTG All-Category Index was unchanged in July from the previous month due to changes in price inputs. The July index fell 3% from June on a like-for-like basis.

France-based global pipe producer Vallourec said it expects U.S. shipments to weaken for the rest of the year. Chief Executive Philippe Guillemot said forecasters expect U.S. oil production to slow due to a low active rig count.

Oilfield services company Baker Hughes said there were 588 active oil and gas rigs in the week ended Aug. 9, 66 fewer than a year ago.

Pipe and tube distributors MRC Global and DNOW both see growth in the pipe and tube business through 2025.

MRC noted that gas utility destocking and project delays have delayed business until next year.

DNOW CEO David Cherechinsky said lower gas prices, combined with reduced oil and gas budgets and tentative spending ahead of the November U.S. presidential election, will lead to a quarter-on-quarter slowdown in U.S. economic activity in the third quarter.