Carbon Steel Tubing in Oil and Gas Lift Applications Market Size & Forecast [2033]

Carbon Steel Tubing in Oil and Gas Lift Applications Market Overview

The Carbon Steel Tubing in Oil and Gas Lift Applications Market size was valued at USD 5819.81 million in 2024 and is expected to reach USD 7902.05 million by 2033, growing at a CAGR of 3.5% from 2025 to 2033.

The carbon steel tubing in oil and gas lift applications market serves as a vital infrastructure segment supporting artificial lift systems across mature and emerging hydrocarbon-producing regions. In 2023, over 4.6 million metric tons of carbon steel tubing were consumed in lift operations across onshore and offshore wells. These tubes are crucial for transporting produced fluids to the surface using gas lift, rod lift, and electric submersible pump systems. The tubing deployed ranges in wall thickness from 0.125 inches to 0.375 inches and in outer diameter from 2 3/8 inches to 4 1/2 inches, tailored for reservoir conditions, flow rates, and pressure environments. With the global inventory of active oil wells exceeding 1.8 million, of which over 60% require artificial lift, demand for corrosion-resistant carbon steel tubing has surged. Internally and externally coated variants have grown in adoption due to extended service life in high-pressure, sour gas, and abrasive environments. In the U.S. Permian Basin alone, more than 320,000 wells operated with artificial lift systems in 2023, consuming approximately 670,000 tons of carbon steel tubing. This market is driven by drilling depth expansion, high water cut recovery systems, and enhanced oil recovery (EOR) strategies that require robust lift infrastructure.

Key Findings

Driver: Increased deployment of artificial lift systems in mature oilfields.

Country/Region: The United States led the market with consumption exceeding 1.2 million metric tons in 2023.

Segment: Internally coated carbon steel tubing accounted for 64% of all lift application tubing usage.

Carbon Steel Tubing in Oil and Gas Lift Applications Market Trends

The global market is shaped by increasing horizontal drilling, aggressive well depletion management, and EOR program expansions. A prominent trend in 2023 was the rising use of internally coated tubing, with over 2.9 million metric tons deployed globally. These coatings, typically epoxy or phenolic-based, provide resistance to CO₂, H₂S, and scaling, thereby increasing average tubing life by 27%. Another trend is the integration of smart tubing strings—fitted with fiber optics and sensors to monitor flow and pressure in real time. In 2023, over 6,400 smart tubing installations were completed across deepwater platforms and unconventional shale fields. Each smart system required tubing compatible with data cable conduits, increasing tubing customization complexity and driving high-margin demand. Additionally, slim-hole artificial lift systems are becoming popular in low-flow, mature wells. These systems used over 490,000 metric tons of 2 3/8"" OD carbon steel tubing globally in 2023, a 19% rise compared to 2022. Africa and Latin America accounted for 27% of such deployments due to cost-sensitive operators optimizing lift efficiency in aging wells.

High-pressure, high-temperature (HPHT) wells also spurred demand for specially heat-treated carbon steel tubing. Over 210,000 metric tons of tubing rated above 125 ksi yield strength were used in HPHT environments in 2023. The Middle East and the Gulf of Mexico accounted for 78% of this demand. A notable supply-side trend includes mill automation in carbon steel tubing production. In 2023, five new ERW (electric resistance welding) lines were commissioned across Mexico, India, and Romania, boosting seamless tubing output by 15% year-over-year. This improved lead times for OCTG (oil country tubular goods) supply during rig upsurges in Q2 and Q3 of 2023. Carbon footprint considerations have also entered procurement decisions. Over 190,000 metric tons of low-emission certified tubing were ordered in 2023 from producers using electric arc furnace (EAF) steel, largely by European and Canadian operators. Finally, the reconditioning and reuse of tubing is gaining traction. Over 385,000 metric tons of carbon steel tubing were refurbished and redeployed in 2023, especially in Latin America and Eastern Europe, where refurbishment costs are 40–55% lower than new procurement.

Carbon Steel Tubing in Oil and Gas Lift Applications Market Dynamics

DRIVER

Increased deployment of artificial lift systems in mature oilfields

More than 60% of global oil wells required artificial lift in 2023. In the U.S. Permian, Eagle Ford, and Bakken formations, over 850,000 wells operate on some form of artificial lift. Carbon steel tubing is integral to sucker rod and gas lift systems, where fluid needs to be efficiently raised from declining reservoirs. Tubing failures in artificial lift operations can reduce well uptime by 6–9 days per year, incentivizing high-spec tubing usage. In 2023, over 2.3 million metric tons of internally coated tubing were used to mitigate corrosion and scale buildup, particularly in high water cut environments.

RESTRAINT

Corrosion and scaling in sour service environments

Carbon steel’s susceptibility to H₂S, CO₂, and produced water corrosion limits its lifespan in aggressive service. In 2023, over 17,600 tubing failure incidents were reported globally, 62% linked to internal corrosion or scale deposits. In fields with produced water salinity exceeding 80,000 ppm, uncoated carbon steel tubing showed average failure within 2.7 years, increasing downtime and workover costs. Operators in the Middle East and South Asia reported significant tubing OPEX, as over 130,000 metric tons of tubing were prematurely replaced due to hydrogen-induced cracking (HIC).

OPPORTUNITY

Growth in low-flow marginal wells and rod lift conversions

As conventional wells age and produce less than 75 barrels per day, many operators are converting to rod lift to extend production life. In 2023, over 68,000 marginal wells globally adopted rod lift systems, each requiring 4–6 metric tons of carbon steel tubing. North America, Argentina, and Indonesia collectively installed over 320,000 metric tons of low-cost tubing in marginal and stripper well applications. This trend presents strong opportunities for lower-specification ERW tubing with improved coating and coupling integrity.

CHALLENGE

Volatile steel prices and OCTG supply chain disruptions

In 2023, global carbon steel price fluctuations ranged from $680 to $1,140 per metric ton, heavily impacting tubing procurement strategies. U.S. Section 232 tariffs and EU anti-dumping duties created procurement inefficiencies. Lead times for seamless tubing extended up to 14 weeks, delaying lift project schedules. Offshore Africa and Southeast Asia reported supply gaps of up to 8,000 metric tons in Q2 2023, forcing operators to use refurbished or alternative alloys. Inventory stockpiling by U.S. shale producers in Q3 further strained international distribution networks.

Carbon Steel Tubing in Oil and Gas Lift Applications Market Segmentation

The market is segmented by type into internally coated and externally coated carbon steel tubing. By application, it is divided into onshore and offshore oil and gas lift operations. Internally coated tubing accounted for over 64% of market volume in 2023, with enhanced corrosion resistance and improved flow performance. Externally coated tubing, used primarily in offshore risers and permafrost zones, made up 36% of total consumption. Onshore applications consumed over 3.2 million metric tons of tubing, while offshore wells accounted for approximately 1.4 million metric tons, driven by subsea developments in Brazil, the Gulf of Mexico, and the North Sea.

By Type

Internally Coated: Internally coated carbon steel tubing was the preferred type in 2023, with over 2.9 million metric tons consumed globally. Epoxy-based and polymeric coatings helped extend tubing life by up to 60 months, especially in wells producing corrosive fluids with high chloride or CO₂ content. In the Middle East, over 960,000 metric tons of internally coated tubing were deployed, largely in horizontal wells using electric submersible pumps (ESP). Enhanced surface smoothness reduced pressure drop by 12–15%, improving overall artificial lift efficiency.
Externally Coated: Externally coated tubing, used for structural integrity in offshore risers and shallow sub-surface casings, reached 1.6 million metric tons in 2023. These coatings—typically fusion-bonded epoxy (FBE) or multi-layer polyethylene—protected tubing from seawater corrosion and abrasion. Offshore platforms in Brazil, Norway, and Angola collectively installed over 560,000 metric tons. Arctic permafrost fields in Alaska and Russia consumed 170,000 metric tons, requiring cold-resistant coatings rated below -40°C.

By Application

Onshore: Onshore wells consumed approximately 3.2 million metric tons of carbon steel tubing in 2023. North America led with over 1.1 million metric tons, followed by Russia and China. Rod lift and gas lift systems were the dominant applications, requiring tubing for vertical sections exceeding 1,200 meters. In Argentina’s Vaca Muerta, over 130,000 metric tons of internally coated tubing were used in tight oil horizontal wells.
Offshore: Offshore applications accounted for 1.4 million metric tons, driven by deepwater lift systems and subsea installations. Brazil’s pre-salt wells alone used 420,000 metric tons of carbon steel tubing in 2023. The Gulf of Mexico and West Africa contributed another 600,000 metric tons, focused on high-pressure gas lift tubing installations rated for 5,000+ psi environments.

Carbon Steel Tubing in Oil and Gas Lift Applications Market Regional Outlook

North America

was the largest regional market, consuming over 1.2 million metric tons of carbon steel tubing in 2023. The United States led with 980,000 metric tons, primarily in the Permian, Bakken, and Eagle Ford formations. Canadian operators contributed 240,000 metric tons, with most tubing used in thermal EOR projects in Alberta. Rod lift systems dominated usage, accounting for 68% of tubing consumption in onshore unconventional fields.

Europe

accounted for 860,000 metric tons, led by the North Sea region. Norway and the U.K. consumed over 530,000 metric tons combined in offshore gas lift and ESP completions. Eastern Europe, particularly Romania and Ukraine, added 130,000 metric tons, mostly in mature onshore wells using beam pump systems. Harsh weather coatings and H2S-resistant tubing were in high demand across these markets.

Asia-Pacific

consumed 1.1 million metric tons in 2023. China accounted for 620,000 metric tons, with widespread tubing replacement across aging wells in Daqing and Shengli fields. India used 190,000 metric tons, driven by ONGC’s offshore projects. Indonesia, Malaysia, and Vietnam collectively added 290,000 metric tons, mainly in gas lift and dual tubing strings used in deviated wells.

Middle East & Africa

saw combined usage of 1.35 million metric tons. Saudi Arabia led with 470,000 metric tons, mostly internally coated tubing for sour service. UAE, Kuwait, and Oman added another 380,000 metric tons. In Africa, Nigeria and Angola consumed over 290,000 metric tons, while Algeria and Egypt contributed 210,000 metric tons, primarily in ESP lift wells and high-sand production zones requiring abrasion-resistant tubing.

List Of Carbon Steel Tubing in Oil and Gas Lift Applications Companies

Sandvik
ArcelorMittal
Nippon Steel & Sumitomo Metal Corporation
Vallourec
Tenaris
Webco Industries
S. Steel Tubular Products
JFE Holdings
SB International

Tenaris: Tenaris held the highest market share in 2023, supplying over 1.3 million metric tons of carbon steel tubing globally for lift applications. The company provided tubing for major projects in the U.S., Argentina, and Saudi Arabia, including internally coated products for high-H₂S environments. Tenaris’s Rig Direct® supply model enabled real-time inventory tracking and reduced downtime for more than 460 operators worldwide.

Vallourec: Vallourec ranked second, with over 1 million metric tons of carbon steel tubing deployed in 2023. Its VAM® joint technology was widely adopted in offshore lift systems in Brazil, West Africa, and the North Sea. Vallourec’s specialized tubing solutions supported more than 210 offshore platforms globally, many in deepwater and HPHT fields.

Investment Analysis and Opportunities

In 2023, the global carbon steel tubing market in oil and gas lift applications attracted over $2.1 billion in investments across manufacturing, coating facilities, logistics, and R&D. North America accounted for $760 million, led by expansions from Tenaris, U.S. Steel Tubular Products, and Webco Industries. Tenaris invested $210 million to modernize its Texas mill, boosting production of API-grade tubing by 22%. Webco added a new ERW line in Oklahoma to cater to stripper wells and ESP lift operations in Oklahoma and Texas. In Europe, $520 million was directed toward coating facilities and offshore-grade seamless tubing. Vallourec commissioned a new high-pressure testing facility in France capable of validating tubing for 15,000 psi service conditions. JFE Holdings partnered with German contractors to develop chromium-enriched coatings for tubing used in HPHT offshore wells. Asia-Pacific saw $430 million in tubing-related CAPEX, mainly from Nippon Steel, SB International, and ArcelorMittal. In Japan, Nippon Steel invested $85 million to expand production of internally coated tubing with wear-resistant linings rated for over 10,000 service hours. Indian operators ONGC and OIL signed contracts worth $180 million to procure 400,000 metric tons of tubing for onshore artificial lift expansion. Middle East & Africa saw $410 million in procurement and EPC-related investments. Saudi Aramco’s new procurement contract for 620,000 metric tons of internally coated tubing over five years involved multiple regional partners. Algeria’s Sonatrach committed $90 million to replace aging carbon steel tubing across 3,800 wells, creating opportunities for African pipe manufacturers.

New Product Development

In 2023–2024, manufacturers launched more than 26 new products tailored to the evolving needs of artificial lift operations. Tenaris introduced its BlueCoat™ tubing line, featuring a dual-layer epoxy internal coating system designed to withstand up to 5,000 ppm H₂S and 300°F operating temperatures. This product was adopted by operators in Oman and Texas, with over 140,000 metric tons installed by year-end. Vallourec launched the Ultraline HT tubing series rated for 125 ksi and used in HPHT fields. It supported production in the Gulf of Mexico’s ultra-deepwater blocks, with over 40,000 metric tons delivered for deepwater completions in 2023. JFE Holdings developed a thin-wall, high-yield steel tubing for rod lift operations in shallow wells. Deployed in over 22,000 wells across Japan and India, the product reduced tubing weight by 18%, improving installation efficiency. ArcelorMittal introduced a coated tubing line with anti-scaling compounds baked into the polymer layer, reducing internal deposits in high-TDS waterfields. Over 18,000 metric tons were used in Argentine EOR wells. Nippon Steel released an anti-abrasion inner layer tubing variant tested for heavy sand production zones. Adopted in Saudi Arabia, the tubing showed 50% lower erosion than conventional coatings across 3,000 hours of simulated flow. U.S. Steel Tubular Products launched an integrated tubing and coupling solution that reduces leak potential at connection points by 74% compared to API standard coupling. Over 35,000 joints were installed across New Mexico and Utah’s tight oil wells.

Five Recent Developments

In March 2023, Tenaris commissioned a coating plant in Texas with a 40,000 metric ton/year epoxy capacity.
In June 2023, Vallourec signed a supply deal with Petrobras for 150,000 metric tons of HPHT-rated tubing.
In July 2023, JFE launched anti-scaling thin-wall tubing for India’s marginal field lift retrofits.
In October 2023, SB International exported 42,000 metric tons of ERW tubing to Argentina and Colombia.
In February 2024, ArcelorMittal deployed its hybrid anti-corrosion tubing in 1,800 Algerian lift wells.

Report Coverage of Carbon Steel Tubing in Oil and Gas Lift Applications Market

This comprehensive report provides detailed insights into the global carbon steel tubing market for oil and gas lift applications, addressing key factors including product types, usage environments, end-user applications, regional market dynamics, and competitive landscape. In 2023, the total market demand exceeded 4.6 million metric tons, covering tubing used in rod lift, gas lift, ESP, and hydraulic lift systems. Segmented by type, the market includes internally coated and externally coated tubing. Internally coated tubing dominated the market with over 2.9 million metric tons consumed, primarily in onshore artificial lift systems requiring corrosion and scale protection. Externally coated tubing, totaling 1.6 million metric tons, was mostly deployed in offshore and permafrost environments to ensure mechanical protection. The application segmentation includes onshore and offshore markets. Onshore wells accounted for 3.2 million metric tons, used mainly in North America, China, and Russia. Offshore consumption reached 1.4 million metric tons, led by Brazil, the North Sea, and the Gulf of Mexico. The report highlights regional trends across North America, Europe, Asia-Pacific, and Middle East & Africa, with country-level consumption and operational insights. The U.S. remained the largest single market with 980,000 metric tons consumed in lift tubing, followed by China and Saudi Arabia. Key players profiled include Tenaris and Vallourec, together accounting for more than 2.3 million metric tons of tubing sales in 2023. Profiles include details on capacity expansions, strategic contracts, and performance in specialized lift scenarios such as HPHT and marginal fields. The report covers over $2.1 billion in investments across production capacity, R&D innovation, and digital supply chain enhancements. New products launched in 2023–2024 are analyzed, focusing on anti-scaling, abrasion resistance, temperature endurance, and integration with real-time flow monitoring systems. This data-driven report equips EPC contractors, operators, and OEMs with precise market intelligence for procurement, investment planning, and product design in artificial lift tubing systems, ensuring operational continuity in today’s evolving hydrocarbon extraction landscape.