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TUBULAR SYNERGY GROUP. Formed in October 2007 Former Lone Star Steel Executives and Management Team A Sales, Marketing and Strategic Sourcing Company Represent over 500,000 Tons of OCTG and Line Pipe Products – Domestic and Import. Well Profile Affects Tubular Consumption. 90% < 12,000 ft.
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TUBULAR SYNERGY GROUP Formed in October 2007 Former Lone Star Steel Executives and Management Team A Sales, Marketing and Strategic Sourcing Company Represent over 500,000 Tons of OCTG and Line Pipe Products – Domestic and Import
Well Profile Affects Tubular Consumption 90% < 12,000 ft Depth (ft) Oil Well 6,000 ft Gas Well 10,000 ft Offshore Well 15,000 ft 0 9-5/8 13-3/8 16 - 20 5,000 11-7/8 9-5/8 5-1/2 9-5/8 5-1/2 2-7/8 10,000 7-5/8 2-7/8 2-7/8 15,000 960 tons 100 tons 50 tons
Observations: • 1,000 Rigs = 240,000 Tons per Month OCTG • Onshore Oil Drilling Increasing • 2010 Natural Gas Volume Hedged is Less Than 50% of 2009 • Steel Prices in Recovery? • Weather, Economic Recovery = 2010 • Hang on Until 2011