Fine Tubes gears up for oil industry upturn
08 December 2017
The last few years have been difficult ones for the oil and gas industry. Weak demand resulting from historically low prices has made life remarkably tough right across the supply chain.
It is estimated that the collapse in oil prices has led to a global reduction in capital expenditure of some 40% over the following two years. Major projects that could no longer even come close to previously established profit criteria were deferred or dropped altogether.
The big issue for companies like Fine Tubes – is how to gear up for this anticipated recovery without overextending themselves.
According to Nicholas Head, Product Manager for SMP’s oil and gas offering, “We’re considerably more confident about 2018 than we were about this year. We’re investing in raw materials, moving ahead of the market to support the increased demand that we anticipate in 2018. Initially, we expect to see this coming from the United States and from the Middle East shortly afterwards. We believe it will be a global phenomenon.”
Fine Tubes produces high-performance tubes from specialty alloys, such as stainless steel, nickel and titanium, that are used to achieve maximum corrosion resistance and to withstand pressures of up to 60,000 psi. These tubes are used in downhole, hydraulic and chemical injection control lines; subsea umbilicals; instrumentation tubing; downhole gauge cables; and pressure housings, to name a few. Recently, the company received a positive response towards it products at ADIPEC exhibition in Abu Dhabi, thereby suggesting that the downturn is approaching its end.