It’s that halfway point in the year when we go to great lengths to determine if the ‘yard’ is half full or half empty. Yes, it’s our quarterly inventory yard survey designed to measure the demand for OCTG; and it encompasses every segment of the supply chain across the lower 48.
So how did the quarter measure up? While our July Report goes into great detail, the primary takeaway for this quarter is that inventories of “prime” pipe rose only slightly in Q2. Do we hear a collective sigh of relief? While there’s more than enough to give pause going forward, there’s a fair amount of positive news in the oil patch, too. Thus, by our analytics, we see the ‘yard’ as half full – suggesting that inventories are stacked in our favor, at least for the short term.