OCTG By the Yard: Measuring the Health of the Oil Patch in Q1

Photo Courtesy United States Steel Corporation

Photo Courtesy United States Steel Corporation

Susan Murphy | Publisher

Susan Murphy | Publisher

When it comes to OCTG inventory, it’s commonly accepted that The OCTG Situation Report is in a league of its own. And every April we swing into action to report the results for the first quarter of our exclusive OCTG inventory survey. As most of you know, we cover all of the bases when it comes to collecting inventory counts throughout the entire supply chain. To ensure the most accurate results we involve a team of people who count pipe at truck terminals, mills, processors and inspection yards across the lower 48. The good news this quarter: no curveballs.

Right off the bat we can tell you the results could be worse. It’s safe to say the run up in inventory stockpiles is not as high as it might be given the glut of imports over the last year. You’ll find complete details in the charts, tables and commentary in our April Report.

As we’ve stated in the past, pipe moves in one of two directions: downhole or uphill. The latest stats indicate that downhole is in the lead. While this news is encouraging it doesn’t mean anyone can take their eye off the ball. The final determinations in the OCTG trade case won’t be revealed until early July and the ITC vote follows in late August. As baseball legend Yogi Berra said: “it ain’t over ’til it’s over.” Until then, domestic production cuts and mill closures will loom large: consequential effects of the unrelenting import situation and growing domestic capacity.  

As we wind up our coverage of the first quarter of 2014 we’re reminded of the paradox that exists currently in the oil patch. Caught between the push and pull of supply versus demand the outcome is really anyone’s game.

About The OCTG Situation Report®

Susan Murphy is the Publisher + Editor in Chief of The OCTG Situation Report®, a leading authority focused on the North American Oil Country Tubular Goods market. Susan has worked alongside the founder of The OCTG Situation Report®, Duane Murphy (and yes, there is a family connection!) for the past decade assisting in various aspects of producing the monthly publication and special projects including market research and development. It had long been suspected that Susan carried the 'OCTGene,' a fact that was confirmed when she took the reins in 2012. A native of Michigan and now practicing cowgirl, Susan employs her education from both the University of Michigan and Michigan State University bringing her expertise in the areas of research, marketing, branding and creative and technical writing to The Report. She has also enjoyed a successful business career as a lauded entrepreneur, running her own brand/marketing and advertising/design firms.
This entry was posted in Energy, First Quarter, Fracking, Horizontal Drilling, OCTG, OCTG Consumption, OCTG Imports, OCTG Inventory Survey, OCTG Pricing, OCTG Producers, OCTG Trade Case, Oil & Gas Industry, Oil & Gas Pricing, Oil Country Tublular Goods, Oil Patch, Prime Pipe, Q1, Shale Plays, steel industry, Supply Chain, Trade Case, Tubular Goods and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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