How does the market for Oil Country Tubular Goods operate? 2 minutes spent reading

How does the market for Oil Country Tubular Goods operate?

Viktoria Steininger
Holds editorial responsibility for blog topics, is researching and writing articles. Her stories give insights into the world of the voestalpine Group.

voestalpine Tubulars GmbH & Co KG is a manufacturer of Oil Country Tubular Goods. But how does the company obtain an order in this market?

The drilling operators and end-users are generally the same company – prominent oil and gas companies as well as small and midsize companies. When operators discover an area they suspect contains deposits of oil, gas or both, they commission extensive geological surveys. If these are positive, they assign a so-called “landman” to acquire the mining rights from the owner of the property.

Robert Scott star of the campaign

Robert Scott star of the campaign

Then a drilling company is commissioned – prior to this, the operator specifies the precise requirements for the Oil Country Tubular Goods for this wellbore and gives the request for proposals with the requirements to the distributor. The Operator must also file permits with a detailed extraction plan to the appropriate Governmental oversight Commissions (In Texas the RR commission)

Good contacts

The distributor requests prices and delivery times from the manufacturer of the Oil Country Tubular Goods. Then the distributor or the operator purchases the tubes. The manufacturer produces the tubes according to the agreed requirements and delivery conditions, and delivers to the distributor. The distributor then delivers them as needed to the well site. To be successful in this business, you need good contacts – with both the drilling operators and with the distributors of the Oil Country Tubular Goods. The voestalpine Tubular Corporation, the sales organization for North America, maintains good, long-term business relationships with local partners.

The latest video from the voestalpine image and brand campaign focuses on Oil Country Tubular Goods, produced in Austria and installed in America. An ongoing blog series offers further insight and background information about the product, the areas of application and the market as well as about Robert Scott, the star of the campaign.

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Viktoria Steininger