Drum roll, please… It’s our 27th year of monitoring and reporting on OCTG and time to raise the curtain on the results of our exclusive OCTG quarterly inventory yard survey. The objective remains the same: to measure demand for OCTG throughout the entire supply chain across the lower 48. The question is: did we end the year on a high note or were we left singing the blues?
We’re pleased to go on record revealing inventories of “prime” pipe decreased in Q4. Further detail is presented in the charts, tables and commentary in our January 2013 Report. Another key barometer of OCTG consumption: Barclays and Dahlman-Rose both released the results of their 2013 E&P spending analysis suggesting that U.S. CAPEX will be flat to down when compared with 2012.
As we wrap another survey and close in on the first month of the New Year we remain mostly upbeat. The big question is: will 2013 turn out to be a hit or a miss? On that note, we look forward to continued record-breaking OCTG consumption, manageable inventory months of supply, relatively stable oil/gas prices, and the increasing role of shale; the “rock” star of our nation’s energy revolution. If we can stay the course and get imports under control – an event that seems close at hand – we have a chance at an encore of 2012 and that should be music to our collective ears.