Growth in Oil & Gas to Boost US Demand for Pipe to More Than $63B
According to The Freedonia Group analyst Matt Zielenski, “Steel accounted for the largest share of pipe demand by value in 2013 with 62 percent of the total, supported by its use in the large oil and gas market. Steel pipe is dominant in oil and gas applications due to its low cost, durability, and compression strength.” The high level of drilling activity and the efforts of oilfield service professionals to increase the size and scope of the nation’s network of transmission and distribution lines will drive gains, according to the report, Plastic & Competitive Pipe.
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Plastic pipe demand is anticipated to rise at the most rapid pace of all materials, advancing 8.7 percent annually through 2018. Growth will be spurred by the increasing use of plastic pipe at the expense of such materials as steel and concrete. In such applications as potable water and sewer and drainage, plastic pipe will increasingly be specified by consumers trying to reduce maintenance and replacement costs. Rebounding building construction expenditures will spur demand for plastic pipe used as conduit, gas distribution, and drain, waste, and vent pipe.
Polyvinyl chloride (PVC) was the leading plastic resin used to make pipe in 2013 and will remain so in 2018. PVC pipe is used in such applications as potable water distribution, sanitary sewer, conduit, and agriculture. Demand will benefit from the material’s durability and resistance to degradation. High-density polyethylene (HDPE), which accounted for the second largest share of plastic pipe demand in 2013, is expected to see the strongest gains through 2018, boosted by the use of HDPE pipe in sewer and drainage, potable water, and natural gas distribution applications. HDPE pipe offers such advantages as durability and corrosion resistance.
Plastic & Competitive Pipe is available for $5,400 from The Freedonia Group Inc. For more information, visit www.freedoniagroup.com.