Increase in drilling volumes supported demand for pipes
29.04.2025
Increased drilling volumes in Russia have stimulated demand for tubular products for the oil and gas industry, especially in the OCTG segment. According to Bloomberg, in January and February 2025, Russian companies drilled an average of more than 2.3 thousand km of wells per month, which significantly exceeds the figures for the period after 2022, when Western service companies left the market. Such an increase in drilling activity may be associated with expectations of sanctions easing and a possible easing of OPEC+ oil production restrictions.
Despite the record pace of production drilling, exploratory drilling volumes have decreased: at the beginning of 2025, they averaged 46 km per month compared to 68 km for the same period last year. Experts attribute this to market uncertainty, personnel shortages, high interest rates on loans and limited access to modern technologies.
According to analysts, the active growth of drilling supports high demand for drill, tubing and casing pipes (OCTG). However, the consumption of large-diameter pipes used in infrastructure and trunk projects remains in question due to the stagnation of large pipeline projects. The main demand for such pipes is provided by repair work, and new large-scale projects are not yet being implemented.
As a result, by the end of the year, a slight increase in demand for oil and gas pipes is expected - about 1%. In the trunk pipeline segment, demand is expected to either remain at the current level or decline slightly, as oil and gas companies continue to focus on developing existing fields rather than building new infrastructure facilities.
