Oil and Gas Exploration Increase is Great News for Noble Alloy Suppliers

Posted in The World Of Metal on 4th February 2011

Oil and gas exploration continues apace in North America with the number of new rigs in the USA and Canada reportedly increasing.

Things appear to be picking up again after the slowdown brought about by the downturn in the global economy and a heavily over-supplied oil field tubular goods sector, which had a dampening effect on the demand for noble alloys.

Current oil prices have risen to over $100 USD a barrel following the state of affairs in Egypt and as has been seen so often, higher prices attract investment, and a perceived change in the political arena has led to more demand for reliance on use of existing resources rather than an increase in imports.

The figures from the USA apparently show a 31.5% increase from January 2010 to date. The Canadian numbers, however, show a far greater increase with the number of rigs active within Canada up by 106.

In South America, it is reported that Brazil will be increasing the amount of rigs they use to around 75 up from 63 last year, and the Brazilian offshore rig count is expected to jump again to an estimated 81 rigs in 2012.

Molybdenum, vanadium, nickel and chromium are all used in the production of pipeline steels and drill rig castings increasing their corrosion, heat and wear resistant properties. Prices for these metals and their alloys have been increasing in line with demand over the past few months.

William Rowland Ltd are ferro alloys suppliers, high purity metals suppliers, metal powders suppliers, nickel powder suppliers, nickel alloy suppliers and tin suppliers. If you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

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