Investor Presentaiton
Months of Supply
US Market Overview
Key Considerations
In 1Q 2013, US total rig count amounted on average to 1,758 rigs, down
3% QoQ and 12% YoY.
Gas rig count remained almost flat QoQ but fell by more than 40% YoY.
Amount of oil rigs decreased slightly QoQ but rose by more than 5% YoY.
■ OCTG inventory level appears to be fractionally up to around 5.3 months
while buyers keep close tabs on what they are buying due to the the rise
of total pipe shipments.
■ Seamless shipments were down 3% QoQ while welded shipments were
up 8% QoQ.
Imports share stayed at 46%; seamless imports were down 9% while
welded imports were up by 16% QoQ.
Source: Baker Hughes, OCTG Situation Report
1Q 2013 US OCTG Inventory Level Slightly Increased
Growing Oil Drilling Activity Supported by High Crude Oil
Prices
US Rig Count
2,100
1,800
1,500
1,200
900
600
300
US Oil and Gas Rig Count
TMK
Gas - 20%
Oil - 80%
0+
Mar-09 Sep-09 Feb-10 Aug-10 Jan-11 Jul-11 Dec-11 Jun-12 Nov-12 May-13
Source: Baker Hughes
Premium Tubular Content Increasing with Unconventional
Drilling Activity
US Oil and Gas Rigs by Type of Drilling
16
14
12
642 O
Months of Supply
-US Rig Count
2,500
2,100
2,000
1,800
1,500
80
CO
+
1,000
US Rig Count
Vertical - 26%
1,500
500
US Rig Count
1,200
Horizontal - 62%
900
600
2
0
0
Jan-08 Oct-08 Jul-09 Apr-10 Jan-11
Oct-11 Jul-12 Apr-13
300
Directional - 12%
0+
Jan-09 Aug-09 Mar-10 Oct-10 Jun-11
Jan-12 Aug-12 Mar-13
Source: Baker Hughes, Preston Pipe & Tube Report
Source: Baker Hughes
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