U.S. demand for pipe to exceed $63 billion

U.S. demand for pipe is expected to rise 7.3% per year to $63.5 billion in 2018.

A new study from Cleveland-based market-research firmhttp://www.freedoniagroup.com/The Freedonia Group shows U.S. demand for pipe is expected to rise 7.3% per year to $63.5 billion in 2018.

The study, entitled “Plastic & Competitive Pipe,” notes gains will be driven by strong growth in crude oil and natural-gas activity because of the extensive use of pipe in drilling and oil-and-gas pipeline applications. The study goes on to say demand also will be supported by a projected rebound in building construction expenditures.

“Steel accounted for the largest share of pipe demand by value in 2013 with 62% 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,” analyst Matt Zielenski said.

The study notes 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.