MRC Global InSight

Oilfield Products

Demand for high density polyethylene pipe (HDPE) and fiberglass products has decreased throughout 2019. The high activity levels experienced during 2018 in the upstream sector have slowed significantly. The lower price of crude through most of 2019 has impacted demand.

Activity levels for oilfield products are traditionally soft in Q1, then pick up steam in early Q2 through Q3. That trend has not repeated in 2019. Current lead times for small diameter pipe (2-inch to 8-inch) are 1 to 2 weeks. Lead times for larger sizes are running between 2 to 4 weeks. With demand trending down, lead times are expected to continue to be shortened throughout the balance of 2019.

HDPE fittings (molded and fabricated) have lead times between 1 to 3 weeks depending on the size, type and manufacturer. Even though demand is reduced compared to 2018, pricing has remained stable.

Demand for drilling and production equipment, mill, tool and safety products appears to be following the same trend as HDPE. Lead times ranging from 2 to 4 weeks can be expected for most drilling and production equipment. Mill, tool and safety materials are often available from inventory.