Investor Presentaiton
US Rig Count
US Market Demand
Recent increase in rig count combined with better rig efficiencies suggest greater demand for OCTG
Favorable commodity prices support increased drilling Premium Tubular Content increasing with Horizontal
Drilling
activity
Total Footage Drilled (by Well Orientation)
416
2,100
420
2,500
■ Horizontal
383
369
■ Gas
1,800
■ Oil
■Directional
360
104
■ Vertical
326
Gas - 17%
2,000
118
1,500
1,200
900
Oil -83%
600
Million Feet Drilled
300
136
260
42
130
1,500
240
217
40
75
32
180
31
30
105
1,000
270
120
226
27
201
156
165
500
300
60
86
0+
Jan-09
0
0
Dec-09 Nov-10
Oct-11 Sep-12 Aug-13
Aug-14
2009
2010
2011
2012
2013
2014E
Source: Baker Hughes
Source: Spears & Associates
Despite decrease in rig count, 2013 Total Footage Drilled increased due to better rig efficiencies
More horizontal drilling means greater demand for premium and semi-premium connections
Trade case final decision should boost demand for domestic OCTG
Gas poised for a comeback; leading to further demand for premium connections
14
Rig Count
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