Argus Permian OCTG Index: Insight on OCTG Price Trends of Permian basin wells
Overview
Argus’ reporting on OCTG prices began with the acquisition of Pipe Logix, the leading independent provider of OCTG and Line Pipe market information, in September 2022. Since 1980, Pipe Logix has produced the Pipe Logix OCTG Index, an equally weighted OCTG price index of tubing, production casing and surface casing which are the three categories of pipe used in every well.
The Argus Pipe Logix OCTG Index has been adopted by some of the largest suppliers and consumers of OCTG to settle sales contracts and as a tool to monitor pricing trends for market analysis and production planning, among other functions. As a trusted provider of OCTG price data and indexes to the industry, Argus determined through conversations with industry experts that an additional need existed within the market for basin specific OCTG Price Indexes. Unlike the Pipe Logix OCTG Index which is equally weighted index of tubing, production casing and surface casing, the basin specific indexes provide a OCTG price Index using the OCTG products and weightings typical of a well in the area. Argus determined the most active US basins, the Permian, Eagle Ford and Bakken basins as the areas to launch the new indexes.
The Permian OCTG Index provides a basin specific OCTG price trend for suppliers and buyers active in the Permian basin. The Permian OCTG Index is an average OCTG price of 8 key specific products used by various operators and weighted according to the casing programs used in the area, providing a broad representation for wells in the Permian basin. Years of survey work analyzing basin specific well casing designs of tens of thousands of wells has allowed Argus the opportunity to determine the weightings in which the Permian OCTG Index is based.
The Permian OCTG Index is published on a monthly basis on the last Wednesday of the month and provides accurate and timely distributor spot price trends of the casing and tubing program used in a typical Permian well. The Permian OCTG Index can be accessed through the Argus Direct online platform and is analysed with pricing trends of other Pipe Logix indexes as a part of the OCTG Service.
Price assessment details
What are the advantages of the Permian OCTG Index?
The Permian OCTG Index is a key benchmark for operators active in the Permian basin. Argus Pipe Logix has years of experience researching and analyzing thousands of wells in the area, which puts us in a unique position to offer insight into the OCTG casing and tubing programs particular to the Permian basin. Using this proprietary research, we are able to determine the average casing program in the Permian and the total weight for an average well. As a result, the industry is provided with a Permian OCTG price index that is an average of key specific products used by operators, enabling buyers and sellers operating in the region with the ability to monitor basin specific pricing trends.
How is this assessment used?
The Permian OCTG Index is used to support contract negotiations and as a tool to gain insight and monitor pricing trends for market analysis and production planning, among other functions. Users include mills, distributors and E&P companies active in the Permian basin.
Key price assessments
