Tubing Spools Market

Market Overview

The global tubing spools market size was valued at USD 582.69 million in 2022. It is estimated to reach USD 858.51 million by 2031, growing at a CAGR of 4.4% during the forecast period (2023–2031). Increased demand for reconstructing older oil wells is projected to accelerate the worldwide tubing spools market's growth.

The tubing spool is an apparatus fastened to the highest or smallest casing string. It is applied to seal the gap between the tube and casing. Metals like high manganese steel, carbon steel, and stainless steel are used to make a variety of tubing spools. The spool connects with a tubing adapter atop an oil well and supports the tubing string. It has an upper and lower flange for holding the pack off the tubing hanger and testing the secondary seal. It has several components: an upper bowl, a locking screw, a load shoulder, a secondary seal region, a test port, an outlet, lower and upper flanges, and a ring gasket groove.

Market Dynamics

Global Tubing Spools Market Drivers

Increased Oil Exploration and Drilling Worldwide

Oil exploration and drilling activities have increased globally during the last century, owing to advancements in drilling technology and increased demand for fuel in cars and other applications. Furthermore, the increase in the success rate of petroleum extraction supports market expansion. Furthermore, increased economic competition in the oil exploration, drilling, and servicing industries increases the use of wellhead systems, which stimulates demand for tubing spools. Furthermore, many oil corporations prioritize new exploration and drilling efforts for oil and gas to obtain a competitive advantage over their competitors and meet the world's expanding oil demand. For example, PetroChina, a Chinese oil and gas company, plans to increase oil output in northern Xinjiang by 2021. The location is a recently discovered oilfield.

Furthermore, PetroChina and Sinopec, two of China's largest oil firms, partnered to explore and produce crude oil in western China to boost domestic supply. Similarly, Saudi Aramco announced its global oil and gas exploration expansion in February 2019. The corporation intends to compete with big competitors such as Royal Dutch Shell and Exxon Mobil to grow into international drilling. As a result, these variables contribute to the global market's expansion.

Increased Demand for Refurbishment of Mature Oil Wells

Mature fields, often known as brownfields, are those where oil production is diminishing or when the end of the field's useful life has come. Although aging oil wells are frequently the subject of fresh discoveries and developments, they are still regarded as the "backbone" of the oil and gas industry. Furthermore, mature fields account for more than 60% of the daily oil output worldwide. Due to the use of cutting-edge technologies in oil wells and reservoir engineering, established oil fields have also seen progress.

Due to profitability concerns and to sustain existing oil production levels, several businesses are concentrating on innovative tactics like redeveloping oil fields. For instance, in May 2019, the American engineering and construction company KBR, Inc. signed a contract to reconstruct oil fields in the Algerian region of Hassi Messaoud with Sonatrach and the Spanish oil and gas business Cepsa. The renovation includes the construction of central processing facilities and related buildings. Thus, increased demand for the reconstruction of older oil wells is projected to significantly accelerate the worldwide Tubing spools market's growth.

Global Tubing Spools Market Restraint

Increase in Prices of Raw Materials

Iron and various alloys are some of the main raw materials tube spool producers utilize. The manufacturers in the value chain may be at risk due to the shifting pricing of these raw materials. Higher commodity costs from important material suppliers may cause a rise in the cost of raw materials, raising the cost of input for tube spools. Additionally, political upheaval in the Middle East and Latin America is expected to exacerbate the effects on the world oil and gas markets, leading to significant price swings in raw materials. This price increase will eventually impact the oil and gas industry when installing tubing spools and investing in wellhead systems. These elements are anticipated to restrain the market for tubing spools' global expansion.

Global Tubing Spools Market Opportunities

Technological Developments in the Wellhead System

A wellhead system's tubing spools are essential because they are related accessories needed to assemble the wellhead system. Pressure is managed during production and drilling operations using wellhead systems. It also connects the surface pressure-control apparatus and is a point from which casing and tubing strings can be suspended. The wellhead is fitted with cutting-edge technology, including Unihead, SPAR, TLP, and SXS, which lowers life cycle costs and provides higher dependability for pressure seals and suspension points. For example, ABB, a Swiss-Swedish multinational firm, debuted ABB Ability Wellhead Manager in March 2019. It is a flexible new cloud-based visualization system for oil and gas operators.

Similarly, in August 2017, the Australian companies KINETIC and WEFIC worked together to introduce premium wellheads in Australia. Wellheads now have nested hanger setups as a new feature. These wellheads are equipped with the capacity to drill without blowout preventer (BOP) removal. The need for tube spools will increase due to these technological advancements in wellhead systems.

Regional Analysis

Based on region, the global tubing spools market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global tubing spools market shareholder and is estimated to exhibit a CAGR of 5.6% over the forecast period. The main driver behind the market's expansion in North America is an increase in investment in the oil and gas industry, which is paired with the finding of new oil fields. Due to increased oil and gas production and extensive exploration of oil and gas, demand for tube spooling will be anticipated to expand in the major regions of North America. Additionally, several petrochemical firms in well-known North American regions are anticipated to increase demand for tube spools.

Additionally, increased investments in North America's oil and gas sector will present market participants with additional growth prospects. For instance, the Canadian Association of Petroleum Producers predicted that from 2019 to 2035, oil sands production will increase by 41%. One of the largest oil and gas firms, Shell, committed USD 13 billion to a liquefied natural gas project in Canada in September 2019. Like this, big American companies announced plans to invest USD 2.4 billion in Equatorial Guinea's oil and gas sector in November 2018. Around 11 wells are scheduled to be drilled by these companies. Consequently, North America's market for tube spools is growing for all these reasons.

Asia-Pacific is anticipated to exhibit a CAGR of 3% over the forecast period. Due to the growing rate of oil exploration in nations like China and Australia, the need for tubing spools has increased dramatically. Additionally, the expansion of these nations' oil and gas industries is anticipated to accelerate market expansion. Due to a drop in oil and gas field production, several manufacturers of tubing spools are heavily invested in R&D to create cutting-edge technology. Australia-based KINETIC and WEFIC joined in August 2017 to open a service facility to promote premium wellheads there.

Furthermore, many developing nations in the Asia-Pacific region have focused on building infrastructure for crude oil exploration to obtain a competitive edge in the oil and gas business. For instance, to satisfy the needs of the rising demand for oil and gas, India committed USD 118 billion to oil and gas exploration and the construction of natural gas infrastructure. China put limitations on foreign investment in its conventional oil and gas upstream in July 2019 to accelerate resource development. This, to boost production at two aging oilfields, China upped its capital investment in crude oil exploration by almost 20% in June 2019. Over the next five years, this investment should increase local production by 50%. Thus, the sum of these variables propels the Asia-Pacific market's expansion.

Europe has emerged as one of the fastest-growing regions in the global market. The market is expanding due to the expansion of Europe's oil and gas industry. Additionally, the trend toward redeveloping mature fields is anticipated to increase demand for wellhead systems, fueling the market for tube spools. One of the main factors influencing the market expansion is the rise in crude field production in the European region due to the North Sea's underwater oil and gas reserve discoveries. Additionally, the production and development of oil in Europe have been prompted by the rise in demand for crude oil. Additionally, many businesses are engaging in large drilling operations both onshore and offshore. Additionally, several significant oil and gas exploration corporations are growing their operations through strategic partnership agreements, projected to present lucrative growth possibilities for the regional market participants.

In LAMEA, the demand for tube spools has increased due to increased investment in oil and gas businesses and the discovery of new oil reserves. The petrochemical industry in several important LAMEA countries uses tubing spools in wellhead systems on a big scale, which propels market expansion. Additionally, expanding the oil and gas industry in the Middle East is projected to raise oil and gas exploration operations there, accelerating market growth. Additionally, Rystad Energy, an independent provider of energy research and business data, believes that this project will cost more than USD 30 billion, making it one of the largest in the area over the past ten years. For market participants, these characteristics present profitable growth potential during the forecast period.

Segmental Analysis

The global tubing spools market is bifurcated into type and application.

Based on the type, the global market is bifurcated into single and duel Tubing. 

The single tubing segment dominates the global market and is projected to exhibit a CAGR of 5.1% over the forecast period. The Christmas tree is attached to the upper casing head in a single tubing head. It provides bowl covers, test plugs, and wedging for tubing hangers. The single tubing bore has a flexible straight bore design for single completions. The pressure between the annulus of the tube and the casing is sealed off.

Additionally, it comes with a nominal bowl size of 7-1/16 inches and a production casing size of 7-5/8 inches. It can sustain heavy weights because of its 45° landing shoulder. Additionally, single-tubing spools are used in the oil and gas industry for HTHP applications. Due to the rise in oil exploration and drilling activities worldwide, single-tubing spools are also a crucial component of the pipe system in the oil and gas industry. Additionally, these tubing spools link to a tubing adaptor at the top and support the tubing string on an oil well.

Based on application, the global market is bifurcated into onshore and offshore.

The onshore segment owns the highest market share and is predicted to exhibit a CAGR of 5% over the forecast period. Onshore refers to the exploration and production of oil and gas on the mainland. The onshore tubing spools industry is benefiting from discovering new oil and gas resources. To meet the increasing demand, oil and gas corporations are also concentrating on finding new oil and gas resources. The tubing spool is a component of the wellhead system installed at an oil or gas drilling well's external opening. It performs a crucial role by providing wellhead pressure control for drilling equipment. In onshore applications, the tubing spool is frequently employed to ensure appropriate pressure sealing of the whole casing in the relevant operation.

Additionally, it is projected that during the forecast period, a surge in investments in offshore oil and gas exploration and production activities would present attractive growth possibilities for the market.

Recent Developments

• May 2022- Launch of a petroleum fabrication facility: Kumul Petroleum Holdings Limited staged a ground-breaking ceremony for a construction training school and steel, mechanical, and piping (SMP) module fabrication facility west of Port Moresby, close to the location of the LNG project.