Operators should consider the market average before making purchases on their oilfields. Cost-effective decisions can be made when you know the average market price for services and supplies needed. This article will demonstrate the market average on pipes in Louisiana. This graph is a visual representation of the average price per foot. It is separated into four categories and each category has two prices, the green bar represents the lowest price found in the market and the orange represents the market average cost of the pipe.
The prices on the graph are relative to the specifications of pipes with a 2-inch diameter and Schedule 40 wall thickness. The market average for these pipes in Louisiana is about $3.20 per foot.
Pipes are categorized by their specifications which include: the type of material, the grade, size of the outer diameter, wall thickness, and type of connection. The connection methods of the pipe are seamless or welded. Welded pipes are usually quoted cheaper due to the difference in cost during processing. The pipes can also be coated if desired which costs about a dollar more per foot.
The graph separates the price per foot into four categories: Used uncoated, New uncoated, Used coated, and New coated. The categories are distinguished by used and new pipes, with and without coating. Therefore, “Used uncoated” would mean used pipes without any coating. Pipe coating can come from the supplier as well, but most rely on an outside manufacturer for coating which increases the price of the pipe. Since suppliers carry a wide variety of pipes, it is important to find one that will meet your needs and fit your budget.
|Supply Company||Item Material||Price per Foot||Location|
|PSC001||Galvanized||$3.19||Baton Rouge, LA|
|PSC002||Used and Tested Coated||$2.35||Nocona, TX|
|PSC003||Jetstream RLP||$8.70||Buna, TX|
|PSC004||Used and Tested J55||$1.75||Guthrie, OK|
|PSC005||Used Carbon Steel||$1.49||Cacrencro, LA|
|PSC006||Used UEU 8RD Bare||$2.15||Houston, TX|
|PSC007||ERW api5Lx52 a53b||$2.10||Broussard, LA|
|PSC007||Imported Seamless a106 api5L x42 Uncoated||$3.20||Broussard, LA|
|PSC007||Imported Seamless a106 api5L x42 Coated||$4.48||Broussard, LA|
|PSC008||A53 A106B TENARIS||$3.45||Lafayette, LA|
|PSC008||API5L X52 A53B ERW||$2.35||Lafayette, LA|
|PSC011||Used Steel Uncoated||$1.75||Nocona, TX|
|PSC012||Black Pipe Uncoated||$3.18||Eunice, LA|
|PSC013||Used Low Steel Grade||$2.00||Scott, LA|
|PSC014||Fiberspar 2" 2500 XT||$15.68||Houston, TX|
|PSC015||8rd Used j55 Steel Uncoated||$2.15||Seminole, OK|
|PSC016||J55 Steel Coated||$5.90||Abilene, TX|
|PSC017||Plastic Uncoated||$0.64||Odessa, TX|
|PSC018||Coated Steel||$4||Midland, TX|
|PSC019||Uncoated Steel||$2.95||Morgan City, LA|
|PSC019||Coated Steel||$4.50||Morgan City, LA|
|PSC020||SCH 40 0.154 API x52 ERW||$2.91||Houston, TX|
|PSC020||SCH XS 0.218 API x52 ERW||$3.42||Houston, TX|
|PSC022||Poly Pipe Uncoated||$1.30||Winnie, TX|
|PSC023||A53B ERW Uncoated||$2.61||Beaumont, TX|
|PSC023||A106B Seamless Uncoated||$3.78||Beaumont, TX|
The lowest price for “Used uncoated” was $0.64 per foot with the average being $1.75 per foot. The “New uncoated” went as low as $2.10 per foot at an average of $3.20. “Used coated” was at $2.35 per foot with an average market price of $3.25 per foot. The “New coated” was lowest at $3.20 per foot at an average of $4.50 per foot. In this analysis, you can see how coating raises the price per foot but is still available at an affordable rate.
Leveraging the market average is one proven way you can lower your operational costs and ensures you are not overpaying for services or supplies. As a data management platform, providing the market average on oilfield service providers is one of the many ways Petrofly reduces operational expenditure. Petrofly’s database of service providers all over the country lets you utilize the service market average for your oil and gas business.