Growing Oil and Gas Production Activities Boost South America Oil Country Tubular Goods Market Growth
According to our latest market study on "South America Oil Country Tubular Goods Market Size and Forecast (2025–2031), Country Share, Trend, and Growth Opportunity Analysis — by Process, Product, and Application," the market was valued at US$ 3,136.2 million in 2024 and is anticipated to reach US$ 4,724.4 million by 2031; it is estimated to register a CAGR of 6.1% during 2025–2031. The report includes growth prospects in light of current South America oil country tubular goods market trends and driving factors influencing market growth.
The South America oil country tubular goods market is experiencing a significant shift, with the growing adoption of advanced drilling technologies such as horizontal drilling, deepwater and ultra-deepwater exploration, and hydraulic fracturing. These innovations are transforming the region's energy landscape, particularly in leading markets such as Brazil, Argentina, Guyana, and Suriname, and are reshaping the requirements for OCTG products. For instance, in Brazil, the exploitation of complex pre-salt reservoirs located in ultra-deepwater zones of the Santos and Campos Basins necessitates the use of high-specification OCTG, including seamless tubing, premium-grade casing, and corrosion-resistant alloys. These wells operate under extreme pressure, high temperatures, and corrosive environments, requiring tubular with exceptional strength, fatigue resistance, and tight sealing capabilities. Similarly, in Argentina, the development of the Vaca Muerta shale formation, one of the largest unconventional reserves globally, is heavily reliant on horizontal drilling and multi-stage hydraulic fracturing. These methods require durable, high-strength OCTG capable of withstanding significant mechanical stress over extended lateral wellbores.
South America Oil Country Tubular Goods Market Analysis – by Geography, 2024
South America Oil Country Tubular Goods Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Process (Seamless and Welded), Product (Drill Pipe, Well Casing, Production Tubing), Application (Onshore and Offshore), and Geography
South America Oil Country Tubular Goods Market Forecast 2031
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Source: The Insight Partners Analysis
Additionally, the repetitive nature of fracking operations increases the demand for reliable and wear-resistant tubing and casing with high torque and pressure-handling capabilities. Additionally, emerging offshore markets such as Guyana and Suriname are also embracing advanced deepwater drilling techniques, further supporting the demand for specialized OCTG solutions engineered for frontier exploration environments. Hence, innovations in drilling technologies are anticipated to be a key trend in the South America oil country tubular goods market.
The scope of the South America oil country tubular goods market report focuses on Brazil, Argentina, Chile, Venezuela, Colombia, Ecuador, Peru, and the Rest of South America. Brazil held the largest South America oil country tubular goods market share in 2024, followed by Argentina. Brazil dominates South America's offshore oil and gas industry, driven by its vast ultra-deepwater reserves in the pre-salt layer of the Santos Basin. In 2023, the country surpassed ~3.4 million barrels of oil per day, with key fields like Tupi and Búzios contributing over ~75% of this production. The challenging conditions of the Santos Basin have spurred the use of cutting-edge extraction technologies, solidifying Brazil's position as a global leader in offshore oil production. Brazil’s 2022–2032 Energy Expansion Plan predicts that the country’s oil production is anticipated to reach ~4.9 million barrels of oil per day by 2032, with the pre-salt fields accounting for ~80% of total production. Shallow water and onshore fields are not anticipated to exceed ~7% of total oil output. However, there is an expectation of improvement in the production of these fields due to the Revitalization Program for the Exploration and Production of Onshore Oil and Natural Gas Areas and the Revitalization and Incentive Program for the Production of Maritime Fields. By 2030, Brazil is projected to become the world’s fifth-largest crude oil exporter.
The Vaca Muerta shale formation continues to be fundamental to Argentina’s energy strategy, offering extensive reserves to meet domestic demand while attracting international investment. Key players such as YPF, ExxonMobil, TotalEnergies, and Petrobras are fueling growth in both oil and LNG production. Argentina’s commitment to expanding its energy portfolio highlights its focus on long-term energy security and economic stability. As one of the noteworthy oil producers in Colombia, Ecopetrol plays a crucial role in the country's OCTG market. The company has a significant operational footprint, generating substantial revenue from its exploration and production activities. Ecopetrol employs a wide range of OCTG products, including tubing and casing, to support its drilling operations in both onshore and offshore fields. The company is focused on enhancing its production capabilities, which drives the demand for high-quality OCTG. Gran Tierra, which is an oil and gas exploration and production company with a strong presence in Colombia, particularly in the Putumayo Basin, highly relies on OCTG for its drilling operations, utilizing both seamless and welded pipes to ensure the integrity and competence of its wells. Gran Tierra's commitment to expanding its production capacity requires a steady supply of OCTG. Petróleos de Venezuela S.A. (PDVSA) is the keystone of Venezuela's oil industry, controlling the exploration, production, refining, and export of oil. The company has faced significant challenges in recent years due to economic sanctions and operational difficulties. PDVSA employs a wide range of OCTG products, including tubing, casing, and drill pipes, to support its widespread drilling operations in various oil fields, such as the Orinoco Belt. The requirement for consistent OCTG is critical for maintaining production levels, especially as the company seeks to regenerate its operations amid declining output.
Petroamazonas EP is a noteworthy state-owned oil company in Ecuador, accountable for a significant portion of the country's oil production. The company operates in several oil fields across the Amazon region. Petroamazonas employs a wide range of OCTG products, including casing, tubing, and drill pipes, to support its drilling operations. The company focuses on maintaining production levels and enhancing operational effectiveness, which drives the demand for high-quality OCTG. Empresa Nacional del Petróleo (ENAP) is the state-owned oil company of Chile and the primary player in the country's oil and gas sector. The company is involved in the production, exploration, refining, and distribution of hydrocarbons. ENAP employs OCTG products, including casing and tubing, for its drilling operations in the Magallanes region, where it has been focusing on enhancing production from existing fields. The company’s commitment to increasing its operational efficiency drives the demand for high-quality OCTG. Geopark Ltd. and Petrobras Chile are among the major companies operating in the oil and gas sector in Chile, which boosts the demand for OCTG in the country.
Corpac, ArcelorMittal S.A., Vallourec S.A., Tenaris, Nippon Steel, and United States Steel Corporation are among the key players profiled in the South America oil country tubular goods market report. Other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The South America oil country tubular goods market forecast can help stakeholders plan their growth strategies. The market analysis provides detailed market insights, which help the key players strategize their growth.
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