Drilling increases in the world: Tenaris

The company Tenaris, a subsidiary of the Techint Group, highlighted that drilling activity related to the energy industry is increasing throughout the world.

During the last year, the increase was driven by the United States and Canada, where it will continue at a lower rate, according to Tenaris forecasts.

Latin America leads the recovery in offshore drilling activity, with increases in Brazil, Mexico and Guyana, and Tenaris expects onshore drilling activity in the Vaca Muerta shale field in Argentina to intensify if investment conditions in the country allow it.

In the Eastern Hemisphere, the company expects the most recent recovery in drilling activity to extend further into the year, driven by the Middle East.

Also, in the first half of 2022, the company projects further increases in sales with higher prices in North America and shipments for an offshore pipeline in Europe.

In the second quarter, Tenaris expects to see a significant recovery in sales in the Middle East and Africa.

Despite higher energy costs in Europe, the company anticipates that its EBITDA margin will also continue to increase in the first half of the year.

Drilling

The global economy has recovered significantly this year, and with it, the demand for energy, including oil and gas.

Increases in oil and gas production did not keep pace with increases in consumption, leading to lower inventory levels and higher prices.

Oil prices are already above pre-pandemic levels and LNG prices reached unprecedented levels during the fourth quarter of 2021.

While investments in oil and gas drilling are projected to rise in 2022 from the low levels seen in the past two years, the level of spending is unlikely to return to pre-pandemic levels, given that large oil and gas companies Publicly traded US shale and gas producers prioritize capital discipline and shareholder returns, while OPEC+ countries continue to manage production level increases.

Tenaris is the leading manufacturer of pipes and related services for the global energy industry and other industrial applications.

Its manufacturing system integrates steelmaking, pipe rolling and forming, heat treatment, threading and finishing in 16 countries.