Features US boosting oil well cement demand through 2024 14 December, 2020 SHARE THIS ARTICLE Share Tweet Post Email LATEST Markets & Competition FLSmidth Cement signs service pact with TITAN Group Expanding service agreement enhances cement industry May 02, 2024 Plant Expansions JK Cement expands Panna cement plant Panna plant expansion signals growth May 02, 2024 MOST READ Markets & Competition US cement market insights unveiled Explore the latest trends and figures in the US cement April 29, 2024 Environment Limak Çimento collabs with Sinoma to establish solar LMKDC makes partnership with Sinoma Overseas Development April 23, 2024 US boosting oil well cement demand through 2024 CW Research, in its World Oil Well Cement Market Forecast 2024, projects consumption of cementitious materials for drilling in the US to reach roughly four million tons by 2024. The upward trend will be supported by an improvement in drilling activity, in turn underpinned by the recovery of oil prices. ÔÇ£Finding its footing, US exploration activity has again wound up with drilling activity resuming after a period of ÔÇÿcricket- likeÔÇÖ silence. Although global oil dynamics are still playing out, somewhat reducing demand for sweet light US-type crude, a reasonably strong US economy is supporting renewed drilling and consequently a notable uptick in oil well cement demand,ÔÇØ notes Robert Madeira, Head of Research for CW Advisory and Research. Oil well cement consumption recovers One of the world's largest crude oil producers, the US market has an estimated daily production of around 10 million barrels per day. That makes the US the leading oil and gas well driller in North America, and also the leading market for oil well cement consumption in the region. The US alone accounts for roughly 40% of the global oil well cement consumption, thus making North America the largest regional consumer of the commodity. Oil well cement demand in the country peaked in 2014 at over seven million tons. However, consumption collapsed in 2016 following challenging conditions in the oil and gas industry. By 2018, oil well cement consumption recovered by over 50 percent, mainly on the back of a large addition of onshore and shale wells. Buyers require API certification On the production side, Cemex is the major oil well cement manufacturer in the United States, with four manufacturing units, followed by LafargeHolcim with three, and Buzzi Unicem with two. Customer-wise, Schlumberger, Halliburton, and Baker Hughes emerge as some of the largest oil well cement consumers. Although buyers in the US market require API certification, the market for non-monogrammed oil well cement is strong. This is due to the pricing deferential between monogrammed and non-monogrammed oil well cement, amidst a premium pricing strategy adopted by renowned manufacturers for their API-certified cement. As a consequence of the acceptance of non-monogrammed cement in the market, API-certified companies are oftentimes discouraged from renewing their certification. CW Research's World Oil Well Cement Market Forecast 2024 report provides an in-depth forecast analysis of the worldwide oil well cement market, including regional market shares, demand, imports, exports and types of oil well cement used by geography, as well as price trends. Find out more about the report here Sign in Don't have any account? Create one SHOW Forgot your username/ password? Log in Terms Of Service Privacy Policy This site is protected by reCAPTCHA and Terms of Service apply Sign in as: User Registration * Required field Sign In Information Personal Information Agree Yes No Terms of Service:You consent that we will collect the information you have provided us herein as well as subsequent use of our platform to render and personalize our services, send you newsletters and occasionally provide you with other information. * Fields marked with an asterisk (*) are required. Register SaveCookies user preferencesWe use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.Accept allDecline allCW GroupNewsAcceptDecline