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Corrosion Resistant Steels and Alloys in the Oil & Gas Industry 1 © SMI – Steel Market Intelligence GmbH & Quest Offshore Resources, Inc. 2013

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DISCLAIMER AND COPYRIGHT

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TABLE OF CONTENTS

Disclaimer and Copyright .............................................................................. 2

Disclaimer ................................................................................................... 2

Copyright Protection .................................................................................. 2

Table of Contents ........................................................................................... 3

1 Introduction ........................................................................................... 16

Steel Types Covered in This Report ................................................. 18 1.1 Material Selection Critera ................................................................... 19 1.2

2 Market Volumes and Structures .......................................................... 21

Market Volumes by Steel Type .......................................................... 21 2.1 Steel Demand in Tonnage ............................................................. 22 2.1.1 Steel Demand: Tonnage vs. Value ................................................. 23 2.1.2

Market Volumes by Product Form ..................................................... 24 2.2 All Steel Types ............................................................................... 24 2.2.1 Alloy Steel ...................................................................................... 26 2.2.2 Stainless Steel ............................................................................... 27 2.2.3 Nickel Alloy..................................................................................... 28 2.2.4

Market Structures by Grade and Product Form ............................... 29 2.3 Alloy Steel ...................................................................................... 29 2.3.1 Stainless Steel ............................................................................... 30 2.3.2 Nickel Alloys ................................................................................... 31 2.3.3 Detailed Summary Table ................................................................ 32 2.3.4

Market Volumes by Region ................................................................ 33 2.4 Overview ........................................................................................ 33 2.4.1 Alloy Steel ...................................................................................... 34 2.4.2 Stainless Steel ............................................................................... 35 2.4.3 Nickel Alloys ................................................................................... 36 2.4.4

Share of Oil and Gas from Total Steel Demand ............................... 37 2.5 Stainless Steel ............................................................................... 37 2.5.1 Nickel Alloys ................................................................................... 39 2.5.2

3 Description of Applications ................................................................. 40

Overview .............................................................................................. 40 3.1 Applications Covered – Summary Steel Type ................................ 41 3.1.1 Applications Covered – Summary Product Forms .......................... 42 3.1.2 Top Applications for Alloy Steel ...................................................... 43 3.1.3 Top Applications for Stainless Steel ............................................... 44 3.1.4 Top Applications for Nickel Alloys .................................................. 45 3.1.5

Drill String ........................................................................................... 46 3.2 Introduction .................................................................................... 46 3.2.1 Drill String Components ................................................................. 47 3.2.2

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Product Forms Used ...................................................................... 61 3.2.3 Grades Used .................................................................................. 62 3.2.4 Standards, Certificates & Testing ................................................... 64 3.2.5 Supply Chain .................................................................................. 65 3.2.6

Blowout Preventers ............................................................................ 67 3.3 Introduction .................................................................................... 67 3.3.1 Ram Type BOP Components ......................................................... 70 3.3.2 Annular Type BOP Components .................................................... 74 3.3.3 Product Forms Used ...................................................................... 76 3.3.4 Grades Used .................................................................................. 76 3.3.5 Standards, Certificates & Testing ................................................... 77 3.3.6 Supply Chain .................................................................................. 77 3.3.7

Wellheads ............................................................................................ 78 3.4 Introduction .................................................................................... 78 3.4.1 Conventional Surface Wellheads (Spool Design) ........................... 79 3.4.2 Subsea Wellheads ......................................................................... 88 3.4.3 Product Forms Used ...................................................................... 95 3.4.4 Grades Used .................................................................................. 96 3.4.5 Standards, Certificates & Testing ................................................... 97 3.4.6 Supply Chain .................................................................................. 99 3.4.7

Casing and Tubing ........................................................................... 100 3.5 Introduction .................................................................................. 100 3.5.1 Product Forms Used .................................................................... 103 3.5.2 Grades Used ................................................................................ 104 3.5.3 Standards, Certificates & Testing ................................................. 109 3.5.4 Supply Chain ................................................................................ 110 3.5.5

Downhole Tools ................................................................................ 111 3.6 Introduction .................................................................................. 111 3.6.1 Downhole Hardware Components ............................................... 112 3.6.2 Product Forms Used .................................................................... 117 3.6.3 Grades Used ................................................................................ 118 3.6.4 Standards, Certificates & Testing ................................................. 121 3.6.5 Supply Chain ................................................................................ 122 3.6.6

Subsea Trees/Christmas Trees ....................................................... 124 3.7 Introduction .................................................................................. 124 3.7.1 Subsea Tree Components ........................................................... 125 3.7.2 Surface Tree/Dry Tree Components ............................................ 133 3.7.3 Product Forms Used .................................................................... 134 3.7.4 Grades Used ................................................................................ 135 3.7.5 Standards, Certificates & Testing ................................................. 136 3.7.6 Supply Chain ................................................................................ 136 3.7.7

Subsea Manifolds ............................................................................. 137 3.8

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Introduction .................................................................................. 137 3.8.1 Manifold Components .................................................................. 137 3.8.2 Product Forms Used .................................................................... 140 3.8.3 Grades Used ................................................................................ 140 3.8.4

Jumpers ............................................................................................. 141 3.9 Introduction .................................................................................. 141 3.9.1 Product Forms Used .................................................................... 142 3.9.2 Grades Used ................................................................................ 144 3.9.3

Flowlines/Pipelines ......................................................................... 145 3.10 Introduction ................................................................................ 145 3.10.1 Introduction to Clad Pipes .......................................................... 146 3.10.2 Product Forms Used .................................................................. 151 3.10.3 Grades Used .............................................................................. 152 3.10.4 Standards, Certificates & Testing ............................................... 157 3.10.5 Supply Chain .............................................................................. 158 3.10.6

Risers ............................................................................................... 159 3.11 Types of Risers .......................................................................... 160 3.11.1 Riser Joints ................................................................................ 174 3.11.2 Product Forms Used .................................................................. 177 3.11.3 Grades Used .............................................................................. 178 3.11.4 Supply Chain .............................................................................. 180 3.11.5 Standards, Certificates & Testing ............................................... 181 3.11.6

Subsea Connectors ........................................................................ 182 3.12 Types of Subsea Connectors ..................................................... 182 3.12.1 Product Forms Used .................................................................. 197 3.12.2 Grades Used .............................................................................. 197 3.12.3 Standards, Certificates & Testing ............................................... 197 3.12.4 Supply Chain .............................................................................. 198 3.12.5

Umbilicals and Flying Leads .......................................................... 199 3.13 Introduction ................................................................................ 199 3.13.1 Product Forms Used .................................................................. 203 3.13.2 Grades Used .............................................................................. 204 3.13.3 Standard, Certificates & Testing ................................................. 206 3.13.4 Supply Chain .............................................................................. 207 3.13.5

Subsea Control Units ..................................................................... 209 3.14 Types of Subsea Control Units ................................................... 209 3.14.1 Product Forms Used .................................................................. 215 3.14.2 Grades Used .............................................................................. 216 3.14.3 Standards, Certificates & Testing ............................................... 216 3.14.4 Supply Chain .............................................................................. 216 3.14.5

Subsea Sensors .............................................................................. 217 3.15 Introduction ................................................................................ 217 3.15.1

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Types of Sensors ....................................................................... 217 3.15.2 Product Forms Used .................................................................. 219 3.15.3 Grades Used .............................................................................. 219 3.15.4

Control & Injection Lines, Tube Bundles ...................................... 220 3.16 Introduction ................................................................................ 220 3.16.1 Product Forms Used .................................................................. 222 3.16.2 Grades Used .............................................................................. 223 3.16.3 Standards, Certificates, Testing ................................................. 223 3.16.4 Supply Chain .............................................................................. 224 3.16.5

Wirelines and Slicklines ................................................................. 225 3.17 Product Forms Used .................................................................. 225 3.17.1 Grades Used .............................................................................. 226 3.17.2

Topsides .......................................................................................... 227 3.18 Introduction ................................................................................ 227 3.18.1 Product Forms Used .................................................................. 249 3.18.2 Grades Used .............................................................................. 250 3.18.3 Standards, Certificate, Testing ................................................... 252 3.18.4 Supply Chain .............................................................................. 255 3.18.5

Subsea Processing ......................................................................... 256 3.19 Introduction ................................................................................ 256 3.19.1

FPSO ................................................................................................ 264 3.20 Swivel Stack ............................................................................... 264 3.20.1 Tubes & Pipes ............................................................................ 268 3.20.2 Topsides .................................................................................... 268 3.20.3

LNG .................................................................................................. 269 3.21 Introduction ................................................................................ 269 3.21.1 Stainless Steel Usage for LNG ................................................... 269 3.21.2

Pumps .............................................................................................. 280 3.22 Introduction ................................................................................ 280 3.22.1 Product Forms Used .................................................................. 301 3.22.2 Grades Used .............................................................................. 301 3.22.3 Standards, Certificates & Testing ............................................... 302 3.22.4 Supply Chain .............................................................................. 305 3.22.5

Fracking Pumps .............................................................................. 306 3.23 Compressors ................................................................................... 309 3.24

Introduction ................................................................................ 309 3.24.1 Product Forms Used .................................................................. 315 3.24.2 Grades Used .............................................................................. 315 3.24.3 Standards, Certificates & Testing ............................................... 316 3.24.4 Supply Chain .............................................................................. 316 3.24.5

Valves .............................................................................................. 317 3.25 Introduction ................................................................................ 317 3.25.1

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Subsea Valves ........................................................................... 317 3.25.2 Types of Valves .......................................................................... 318 3.25.3 Product Forms Used .................................................................. 363 3.25.4 Grades Used .............................................................................. 363 3.25.5 Standards, Certificates, Testing ................................................. 364 3.25.6 Supply Chain .............................................................................. 367 3.25.7

Actuators ......................................................................................... 368 3.26 Main Components of Actuators .................................................. 369 3.26.1 Product Forms Used .................................................................. 372 3.26.2 Grades Used .............................................................................. 372 3.26.3

4 Macro Trends and Drivers .................................................................. 373

Macroeconomic and Energy ............................................................ 373 4.1 Life Cycle of a Field Development ................................................... 381 4.2

Assessment, Exploration, Appraisal and Definition ...................... 382 4.2.1 Concept Selection ........................................................................ 386 4.2.2 Project Sanctioning ...................................................................... 389 4.2.3 Front-End Engineering & Design (FEED) & Engineering ............. 390 4.2.4 Execute ........................................................................................ 391 4.2.5 Operate ........................................................................................ 394 4.2.6

Spending Trends .............................................................................. 395 4.3 International E&P Spending Outlook ............................................ 395 4.3.1 Offshore Capex / Spending Models ............................................. 397 4.3.2

Oil & Gas Development Trends ....................................................... 400 4.4 Water Depth Trends in the Offshore Oil and Gas Industry ........... 401 4.4.1 High Pressure and High Temperature Trends ............................. 403 4.4.2 Project Economics and Final Investment Decisions ..................... 405 4.4.3 The Shale Transformation ............................................................ 409 4.4.4

Technology Focus: Subsea Processing ......................................... 417 4.5 Subsea Processing Components ................................................. 417 4.5.1 Subsea Boosting .......................................................................... 418 4.5.2 Subsea Separation ....................................................................... 420 4.5.3 Subsea Gas Compression ........................................................... 422 4.5.4

Regional Trends ................................................................................ 423 4.6 North America .............................................................................. 425 4.6.1 South America .............................................................................. 432 4.6.2 The North Sea, Arctic and Europe ............................................... 435 4.6.3 Africa ............................................................................................ 438 4.6.4 Asia, Australia and the Indian Subcontinent ................................. 441 4.6.5

Operator Trends ................................................................................ 444 4.75 Oil & Gas Market Forecasts................................................................ 449

Introduction ....................................................................................... 449 5.1 Drilling Rig Supply and Rig Construction ...................................... 449 5.2

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Overall Fleet Trends ......................................................................... 453 5.3 Jack-Up Rigs ................................................................................ 455 5.3.1 Subsea Blowout Preventers ......................................................... 457 5.3.2

Exploration, Appraisal and Development Drilling .......................... 458 5.4 Deepwater Drilling ........................................................................ 458 5.4.1 Shallow Water Drilling .................................................................. 463 5.4.2 Onshore Drilling ........................................................................... 465 5.4.3 Subsea Wellheads ....................................................................... 466 5.4.4

Subsea Trees .................................................................................... 468 5.5 Subsea Equipment Suppliers ....................................................... 469 5.5.1 Technology Evolution ................................................................... 474 5.5.2 Water Depth Progression ............................................................. 475 5.5.3 Regional Subsea Analysis ........................................................... 477 5.5.4

Manifolds ........................................................................................... 482 5.6 Subsea Production Umbilicals and Flying Leads .......................... 485 5.7

Steel & Thermoplastic .................................................................. 486 5.7.1 Umbilical Manufacturers & Product Mix ....................................... 490 5.7.2 Steel Tube Umbilical Manufacturers & Market Share ................... 491 5.7.3 Global Steel Tube Umbilical Forecast & Outlook ......................... 496 5.7.4 Regional Steel Tube Umbilical Forecasts & Dynamics ................ 499 5.7.5 Flying Leads ................................................................................. 507 5.7.6

Deepwater Flowlines ........................................................................ 509 5.8 Processing Hosts, Infield Flowlines and Export Pipelines ............ 509 5.8.1 Infield Flowline Design: Flexible & Rigid Steel ............................. 510 5.8.2 Installation Methods and Vessels ................................................. 512 5.8.3 Global Flowline Installation Forecasts .......................................... 517 5.8.4 Regional Infield Flowline Installation Highlights............................ 520 5.8.5 Jumpers ....................................................................................... 525 5.8.6

Risers ................................................................................................. 527 5.9 Floating Production Systems and Platforms ............................... 530 5.10

Floating Production Storage and Offloading Units ..................... 531 5.10.1 Semi-Submersible Production Units ........................................... 535 5.10.2 Tension Leg Platforms ............................................................... 537 5.10.3 Spar Production Units ................................................................ 540 5.10.4 Floating Liquefied Natural Gas Units .......................................... 542 5.10.5 Fixed Platforms .......................................................................... 544 5.10.6

Subsea Processing ......................................................................... 545 5.11 Subsea Technology Key Players ............................................... 546 5.11.1

LNG .................................................................................................. 551 5.126 Steel Demand Forecast ...................................................................... 553

Forecast by Steel Type ..................................................................... 553 6.1 Overview ...................................................................................... 553 6.1.1

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Alloy Steel .................................................................................... 554 6.1.2 Stainless Steel ............................................................................. 555 6.1.3 Nickel Alloy................................................................................... 556 6.1.4

Forecast by Product Form ............................................................... 557 6.2 Rolled & Forged Bars ................................................................... 557 6.2.1 Tube & Pipe ................................................................................. 558 6.2.2

Detailed Summary Tables ................................................................ 559 6.37 Price Trends ........................................................................................ 560

Oil & Gas Price Trends ..................................................................... 560 7.1 Raw Materials Price Trends ............................................................. 563 7.2

Nickel ........................................................................................... 563 7.2.1 Chrome ........................................................................................ 565 7.2.2 Molybdenum................................................................................. 566 7.2.3

Capacity Utilization Scenarios ......................................................... 567 7.3 Duplex and Nickel Alloy OCTG .................................................... 567 7.3.1 Umbilicals ..................................................................................... 568 7.3.2

8 End Users of Special Steel in Oil & Gas ............................................ 569

Major Oil Companies ........................................................................ 569 8.1 BP ................................................................................................ 569 8.1.1 Chevron ....................................................................................... 573 8.1.2 Eni ................................................................................................ 576 8.1.3 ExxonMobil................................................................................... 579 8.1.4 Shell ............................................................................................. 583 8.1.5 Total ............................................................................................. 587 8.1.6

National Oil Companies.................................................................... 590 8.2 ADNOC ........................................................................................ 590 8.2.1 CNOOC ........................................................................................ 591 8.2.2 Kuwait Petroleum Corporation ..................................................... 594 8.2.3 PEMEX ........................................................................................ 595 8.2.4 Petrobras ..................................................................................... 597 8.2.5 Petronas ....................................................................................... 603 8.2.6 Qatar Petroleum .......................................................................... 604 8.2.7 Saudi Aramco ............................................................................... 605 8.2.8 Statoil ........................................................................................... 606 8.2.9

Independent Oil Companies ............................................................ 610 8.3 Anadarko ...................................................................................... 610 8.3.1 Cobalt International Energy .......................................................... 613 8.3.2 ConocoPhilips .............................................................................. 615 8.3.3 Noble Energy ............................................................................... 617 8.3.4

EPC and Marine Construction Contractors .................................... 620 8.4 List of Companies ........................................................................ 620 8.4.1 Allseas ......................................................................................... 621 8.4.2

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EMAS .......................................................................................... 623 8.4.3 Heerema Marine Contractors ....................................................... 625 8.4.4 McDermott.................................................................................... 627 8.4.5 Saipem ......................................................................................... 629 8.4.6 Subsea 7 ...................................................................................... 631 8.4.7 Technip ........................................................................................ 634 8.4.8

Shipyards .......................................................................................... 637 8.5 Korean Shipyards ......................................................................... 637 8.5.1 Singapore Shipyards .................................................................... 640 8.5.2 Chinese Shipyards ....................................................................... 643 8.5.3

Drilling Contractors .......................................................................... 646 8.6 Diamond Offshore ........................................................................ 646 8.6.1 ENSCO ........................................................................................ 648 8.6.2 Noble ............................................................................................ 650 8.6.3 Seadrill ......................................................................................... 652 8.6.4 Transocean .................................................................................. 654 8.6.5

Umbilical Manufacturers .................................................................. 656 8.7 Aker Solutions .............................................................................. 656 8.7.1 Nexans ......................................................................................... 658 8.7.2 Oceaneering................................................................................. 660 8.7.3 Parker .......................................................................................... 663 8.7.4 Technip ........................................................................................ 665 8.7.5

Equipment Manufacturers................................................................ 666 8.8 List of Companies ........................................................................ 666 8.8.1 Aker Solutions .............................................................................. 670 8.8.2 Cameron ...................................................................................... 672 8.8.3 Dril-Quip ....................................................................................... 674 8.8.4 FMC Technologies ....................................................................... 676 8.8.5 GE Oil & Gas ................................................................................ 678 8.8.6 Baker Hughes .............................................................................. 681 8.8.7 Halliburton .................................................................................... 683 8.8.8 National Oilwell Varco (NOV) ....................................................... 685 8.8.9

Schlumberger ............................................................................. 687 8.8.10 Weatherford ............................................................................... 689 8.8.11 ACE OCTG ................................................................................ 691 8.8.12 Amega West Services (Carpenter Group) .................................. 693 8.8.13 American Hollow Boring ............................................................. 694 8.8.14 AusGroup Singapore .................................................................. 695 8.8.15 Drilmaco ..................................................................................... 696 8.8.16 Dyna-Drill Technologies ............................................................. 697 8.8.17 Faxon Machining ........................................................................ 698 8.8.18 Fong Lee Metal Industries .......................................................... 699 8.8.19 Hayer Engineering ..................................................................... 700 8.8.20

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Henan Shenlong Petroleum Drilling Tools ................................. 701 8.8.21 Hunting ....................................................................................... 702 8.8.23 Hunting Dearborn ....................................................................... 703 8.8.24 Integrated Equipment ................................................................. 704 8.8.25 Interdril Asia ............................................................................... 705 8.8.26 Lilin Group .................................................................................. 706 8.8.27 Lunik Engineering Service.......................................................... 707 8.8.28 NCCL ......................................................................................... 709 8.8.29 NOV Flexibles ............................................................................ 710 8.8.30 NOV Grant Prideco .................................................................... 711 8.8.31 Oilfield Services & Supplies ....................................................... 713 8.8.32 Oil States Industries ................................................................... 715 8.8.33 Schoeller-Bleckmann Oilfield Equipment ................................... 717 8.8.34 Shanxi Yida Special Steel Group ............................................... 723 8.8.35 SMI Manufacturing (Ameriforge Group) ..................................... 724 8.8.36 Swagelok.................................................................................... 726 8.8.37 TubeTec ..................................................................................... 728 8.8.38 VAM Drilling ............................................................................... 729 8.8.39 Vector Technology Group .......................................................... 731 8.8.40 Western Drilling Tools ................................................................ 733 8.8.41 WOM Worldwide Oilfield Machine .............................................. 735 8.8.42 Zhongyuan Special Steel (ZYSCO) ............................................ 737 8.8.43

Pump Manufacturers ........................................................................ 738 8.9 List of Companies ........................................................................ 738 8.9.1 AXON EP ..................................................................................... 739 8.9.2 Bornemann................................................................................... 740 8.9.3 Flowserve Corporation ................................................................. 741 8.9.4 Gardner Denver ........................................................................... 743 8.9.5 Leistritz ......................................................................................... 745 8.9.6 LEWA ........................................................................................... 746 8.9.7 Maximator .................................................................................... 747 8.9.8 McFarland-Tritan .......................................................................... 748 8.9.9

Mono Pumps .............................................................................. 749 8.9.10 Moyno ........................................................................................ 750 8.9.11 NETZSCH .................................................................................. 751 8.9.12 OBL Metering Pumps ................................................................. 752 8.9.13 Peroni ......................................................................................... 753 8.9.14 PCM ........................................................................................... 754 8.9.15 Resato International ................................................................... 755 8.9.16 Seepex ....................................................................................... 756 8.9.17 SPX Corporation ........................................................................ 757 8.9.18 Stewart & Stevenson .................................................................. 759 8.9.19 Sulzer Pumps ............................................................................. 760 8.9.20

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Weir Oil & Gas Division .............................................................. 763 8.9.21 Valve Manufacturers ....................................................................... 765 8.10

List of Companies ...................................................................... 765 8.10.1 Bray International ....................................................................... 769 8.10.2 Breda Energia ............................................................................ 770 8.10.3 Cameron .................................................................................... 771 8.10.4 Flowserve ................................................................................... 773 8.10.5 FMC Technologies ..................................................................... 775 8.10.6 Koso Kent Introl .......................................................................... 776 8.10.7 LESER ....................................................................................... 777 8.10.8 Master Flo .................................................................................. 779 8.10.9 Mokveld .................................................................................... 780 8.10.10 Neway Valve ............................................................................ 781 8.10.11 Pentair ...................................................................................... 782 8.10.12 Petrolvalves .............................................................................. 784 8.10.13 Schuck Group .......................................................................... 786 8.10.14 Severn Glocon Group .............................................................. 787 8.10.15 Weir Power & Industrial ............................................................ 788 8.10.16

9 Suppliers of Special Steel for Oil & Gas ........................................... 789

Special Steel and Nickel Alloy Producers ...................................... 789 9.1 List of Companies ........................................................................ 789 9.1.1 A. Finkl & Sons Company ............................................................ 791 9.1.2 Allegheny Technologies Incorporated .......................................... 792 9.1.3 Aperam Alloys Imphy ................................................................... 795 9.1.4 Ascometal .................................................................................... 797 9.1.5 Aubert & Duval ............................................................................. 799 9.1.6 BGH Edelstahl .............................................................................. 802 9.1.7 Böhler Edelstahl ........................................................................... 804 9.1.8 Carpenter Technology Corporation .............................................. 806 9.1.9

Cogne ........................................................................................ 810 9.1.10 Daido Special Metals ................................................................. 812 9.1.11 DEW Deutsche Edelstahlwerke ................................................. 815 9.1.12 Electralloy................................................................................... 818 9.1.13 Electrostal .................................................................................. 820 9.1.14 Ellwood Group Inc. ..................................................................... 822 9.1.15 Firth Rixson ................................................................................ 826 9.1.16 Fomas Group ............................................................................. 827 9.1.17 Foroni ......................................................................................... 828 9.1.18 GIVA Group................................................................................ 829 9.1.19 Gloria Material Technology Corp. ............................................... 838 9.1.20 Industeel .................................................................................... 839 9.1.21 Jorgensen Forge Corporation .................................................... 840 9.1.22 JSW ........................................................................................... 841 9.1.23

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Latrobe Special Metal ................................................................ 842 9.1.24 Metal Ravne ............................................................................... 844 9.1.25 Nippon Steel & Sumitomo Metal Corp. ....................................... 846 9.1.26 Nippon Yakin Kogyo ................................................................... 849 9.1.27 Outokumpu................................................................................. 851 9.1.28 Outokumpu VDM ........................................................................ 854 9.1.29 Ovako ......................................................................................... 856 9.1.30 POSCO Specialty Steel ............................................................. 858 9.1.31 Sandvik Materials Technology ................................................... 860 9.1.32 Scana Industrier ......................................................................... 862 9.1.33 Schmiedewerke Gröditz ............................................................. 864 9.1.34 Sheffield Forgemasters .............................................................. 866 9.1.35 Sorel Forge ................................................................................ 869 9.1.36 Special Metals ............................................................................ 871 9.1.37 Timken ....................................................................................... 873 9.1.38 Ugitech ....................................................................................... 874 9.1.39 Universal Stainless & Alloy Products ......................................... 877 9.1.40 Valbruna Stainless Steel ............................................................ 879 9.1.41 Villares Metals ............................................................................ 881 9.1.42 Zhongyuan Special Steel Co., Ltd (ZYSCO) .............................. 884 9.1.43

Forging Companies .......................................................................... 885 9.2 List of Companies ........................................................................ 885 9.2.1 Bharat Forge ................................................................................ 887 9.2.2 BRÜCK ........................................................................................ 888 9.2.3 Forgerossi .................................................................................... 890 9.2.4 Forgiatura Mamé .......................................................................... 892 9.2.5 Forgiatura Morandini .................................................................... 893 9.2.6 Forgital Group .............................................................................. 896 9.2.7 Franchini Acciai ............................................................................ 900 9.2.8 Galperti Group .............................................................................. 903 9.2.9

Manoir Industries ........................................................................ 904 9.2.10 Magnum Forge & Machine Works (WOM) ................................. 905 9.2.11 Patriot Forge .............................................................................. 906 9.2.12 Ringmill ...................................................................................... 908 9.2.13 Sanghvi Forging & Engineering .................................................. 909 9.2.14 Scot Forge.................................................................................. 912 9.2.15 Wilhelm Maass ........................................................................... 914 9.2.16

Seamless Tube and Pipe Producers ............................................... 915 9.3 List of Companies ........................................................................ 915 9.3.1 Centravis ...................................................................................... 916 9.3.2 Changshu Walsin Specialty Steel ................................................ 918 9.3.3 Fine Tubes ................................................................................... 919 9.3.4 HandyTube Corporation ............................................................... 920 9.3.5

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Jiuli Hitech Metals ........................................................................ 921 9.3.6 Nippon Steel & Sumitomo Metal .................................................. 922 9.3.7 PCC Energy ................................................................................. 923 9.3.8 Salzgitter Mannesmann Stainless Tubes ..................................... 925 9.3.9

Sandvik Materials Technology ................................................... 927 9.3.10 Schulz Xtruded Products ............................................................ 929 9.3.11 Tubacex Group .......................................................................... 930 9.3.12

Welded Tube and Pipe Producers and Providers of Cladding and Weld 9.4Overlay .................................................................................................... 932

List of Companies ........................................................................ 932 9.4.1 Bergrohr ....................................................................................... 935 9.4.2 BRISMET ..................................................................................... 936 9.4.3 BSL Pipes & Fittings .................................................................... 937 9.4.4 BUTTING ..................................................................................... 938 9.4.5 Canadoil Group ............................................................................ 940 9.4.6 Cladtek International .................................................................... 943 9.4.7 EEW Erndtebrücker Eisenwerk .................................................... 944 9.4.8 Eisenbau Krämer ......................................................................... 945 9.4.9

Fine Tubes ................................................................................. 945 9.4.10 FROCH ...................................................................................... 946 9.4.11 Gieminox Tectubi Racordi .......................................................... 947 9.4.12 Inox Tech ................................................................................... 948 9.4.13 IODS Pipe Clad .......................................................................... 949 9.4.14 Jiuli Hi-Tech Metals .................................................................... 949 9.4.15 JSW ........................................................................................... 949 9.4.16 LS Metal ..................................................................................... 950 9.4.17 Marcegaglia................................................................................ 951 9.4.18 MesoCoat ................................................................................... 953 9.4.19 OSTP ......................................................................................... 954 9.4.20 PCC Klad ................................................................................... 955 9.4.21 Proclad Group ............................................................................ 956 9.4.22 Protubo ...................................................................................... 957 9.4.23 Rath Gibson (PCC Energy) ........................................................ 958 9.4.24 Rivit ............................................................................................ 960 9.4.25 Seah Steel.................................................................................. 961 9.4.26 Sosta .......................................................................................... 962 9.4.27 Usteel ......................................................................................... 963 9.4.28 Wellclad ..................................................................................... 964 9.4.29 YC Inox ...................................................................................... 965 9.4.30

Specialized Distributors ................................................................... 966 9.5 List of Companies ........................................................................ 966 9.5.1 Advance Material Supplies ........................................................... 968 9.5.2 Aerodyne Alloys ........................................................................... 969 9.5.3

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Castle Metals ............................................................................... 970 9.5.4 Centro Servizi Metalli ................................................................... 971 9.5.5 Concept Steels ............................................................................. 972 9.5.6 Continental Alloys ........................................................................ 973 9.5.7 Copper and Brass Sales .............................................................. 974 9.5.8 Corrosion Materials Inc. ............................................................... 975 9.5.9

Corrosion Resistant Alloys ......................................................... 976 9.5.10 Edgen Murray ............................................................................. 977 9.5.11 Elvinox ....................................................................................... 979 9.5.12 EMJ ............................................................................................ 981 9.5.13 Energy Alloys ............................................................................. 982 9.5.14 ESS Engineering Special Steels ................................................ 983 9.5.15 Exploration and Production Metals ............................................. 984 9.5.16 Hamilton Metals ......................................................................... 985 9.5.17 Hart ............................................................................................ 986 9.5.18 Howco Group ............................................................................. 987 9.5.19 Impact Special Metals ................................................................ 988 9.5.20 Kim Ann Engineering ................................................................. 989 9.5.21 Kreher Steel Company ............................................................... 990 9.5.22 Langley Alloys ............................................................................ 991 9.5.23 Linster Edelstahlhandel .............................................................. 993 9.5.24 MRC Global ................................................................................ 994 9.5.25 National Specialty Alloys ............................................................ 995 9.5.26 NeoNickel ................................................................................... 996 9.5.27 Oxford Alloys .............................................................................. 997 9.5.28 PFP ............................................................................................ 998 9.5.29 Premier Hytemp ......................................................................... 999 9.5.30 Prochem ................................................................................... 1000 9.5.31 Rolled Alloys ............................................................................ 1001 9.5.32 Special Piping Materials ........................................................... 1002 9.5.33 Specialty Steel Supply ............................................................. 1003 9.5.34 SSH Corporation ...................................................................... 1004 9.5.35 Stemcor Special Steels ............................................................ 1005 9.5.36 Sunbelt Steel ............................................................................ 1006 9.5.37 Sunbelt-Turret Steel ................................................................. 1007 9.5.38 Super Alloy FZE ....................................................................... 1008 9.5.39 Trident Metals .......................................................................... 1009 9.5.40 Tube Supply ............................................................................. 1010 9.5.41 UPC Interpipe ........................................................................... 1011 9.5.42 Van Leeuwen Pipe and Tube Group ........................................ 1012 9.5.43

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1 INTRODUCTION

Despite efforts to promote renewable resources, oil & gas will continue to be the backbone of energy supply for the next decades to come. As conventional available reserves have largely been exhausted, more difficult fields have to be explored and enhanced oil recovery methods have to utilize in existing fields in order to keep up with the accelerating demand for oil & gas. The era of easy accessible oil has ended!

The share of offshore drilling from the total oil & gas production has increased significantly during the past decades and ultra deepwater wells have been developed. Also the production of offshore gas has increased significantly.

Source: IEA World Energy Outlook 2012, Quest Offshore

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The following graph shows that offshore and deepwater developments are important in order to meet the growing demand for oil.

Source: IEA World Energy Outlook 2012, Quest Offshore

Oil and gas production is more challenging today as service conditions have become increasingly severe, e.g.:

• Pressures and temperatures are higher in deeper wells; • Fields are sour (high H2S content) and contaminated with CO2; • Corrosion is accelerating with higher temperatures; • Enhanced oil recovery requires boosting technologies including water and

chemical injection; • Extreme cold and ice conditions are challenging for drilling in artic regions • Oil & gas has to be transported from remote fields to shore;

All these challenges are calling for advanced technologies and improved equipment in order in order to ensure a smooth and especially safe production of oil & gas.

This is where Corrosion Resistant Alloys (CRAs) are coming into play, as they are better suited to meet increasingly demanding requirements in exportation and production. Thus, the demand for special alloy steels, stainless steels and nickel alloys for upstream oil & gas applications has grown substantially and this trend is expected to continue.

This report describes the main applications for CRAs in the oil & gas industry and analyses steel grades, product forms, dimensions and material trends. The consumption of CRAs is shown on global and regional bases and the main suppliers are introduced as well as the major consumers in the oil & gas industry.

Additionally, the report analyzes the key trends in the oil and gas industry, especially the increase in exploration from production in areas such as deepwater and shale

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gas which are driving demand for stainless steels and corrosion resistant alloys. The report analyzes equipment demand trends for key pieces of equipment in the oil and gas industry which utilize specialty steels as well as he trends driving demand for these materials and the effects the supply chain for these materials will have on the oil and gas industry.

STEEL TYPES COVERED IN THIS REPORT 1.1Corrosion Resistant Alloys (CRA) are typically defined as stainless steels and nickel alloys. In addition to typical CRA, also special alloy steels are widely used in the oil & gas industry which were also included in this report. The following graph introduces the main grade families that are covered within this Alloy Steels e.g. 4130, 4145, 4330, 8630, F22

Stainless Steels Martensitic (e.g. 13Cr, Super 13Cr, 420)

Austenitic Grades (e.g. 304, 316, 347)

Duplex & Superduplex (e.g. 2205, 2507, LDX2101)

Precipitation Hardening (e.g. 17-4 PH, 15-5 PH, 13-8)

Superaustenitics (e.g. 6Mo grades)

Nickel Alloys e.g. Alloy 28, 625, 718, 825, C276

The main applications for each grade family will be discussed in detail within this report including a breakdown by grades, product form and dimensions.

For stainless steel and nickel alloys also the supply side will be analyzed in detail including future supply and demand scenarios and potential capacity constraints.

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MATERIAL SELECTION CRITERA 1.2Dependent on the conditions the material is selected in the following order (CRAs are shown in green):

1. Carbon Steel 2. Alloy Steel 3. 13Cr, martensitic stainless 4. 300 series austenitic stainless 5. Duplex 2205 6. Superduplex 2507 7. 28Cr (Alloy 28) 8. Ni Alloys (e.g. 825, 925, 718, C276) 9. Titanium

The CRA demand is driven by the production/reservoir conditions (sorted by importance):

1. Corrosiveness (H2S, CO2, Chloride) 2. Temperature 3. Pressure

All CRA grades can handle CO2 and thus the choice mainly depends on H2S and chloride levels as well as temperatures.

To select the appropriate material for a given application corrosion engineers calculate the expected corrosion rate per year which is multiplied by the design life of the application. Especially in the oil and gas industry where the costs of failure due to lost production or other effects of material failure are so high, significant tolerance is required. Depending on the application the required extra tolerance can be very large, especially in offshore and deepwater application where the cost of installing replacement equipment is extremely high.

When corrosion is expected to exceed a certain level, either CRAs are selected or carbon steel with a higher wall thickness can be used. Instead of solid CRA material also cladding or weld overlay can be applied on carbon or alloy steels. Another option to fight corrosion is the usage of chemical inhibitors or cathodic protection.

Whilst safety is the number one criteria, the selection of the material also depends on the calculated life cycle costs. Whilst CRAs require higher capital investment in the beginning, they may well be the cheaper option in the entire life cycle as they have to be replaced less frequently, require less maintenance and do not require chemical inhibitors.

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The following input parameters are used for the calculations:

• Fluid composition (data from test well) like H2S or CO2 (the highest possible content is used for the calculation), acidity (pH)

• Temperature and pressure • Water content • Formation water (data from surrounding fields) • Chloride content • Oxygen content • Velocity

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