In 2019, under the influence of multiple factors such as the macroeconomic downturn, oversupply, frequent geopolitical events, and the rise and fall of global trade disputes, international oil prices have risen first and then have stagnated and fluctuated. The overall trend has shown a downward trend. The average price of Brent crude oil futures in 2019 was $ 64.09 / barrel, a year-on-year decrease of $ 7.60 / barrel, a decrease of 10.6%; the average price of U.S. West Texas Intermediate crude oil futures was $ 56.93 / barrel, a decrease of $ 7.97 / barrel, a decrease It was 12.3%.

Affected by the sluggish international oil prices, the international oil and gas giants Exxon Mobil, Royal Dutch Shell, Chevron and other companies have experienced declines in total revenue and net profit to varying degrees. These companies have said that the downturn in the downstream oil and gas market has led to poor operating results in 2019. At the same time, the price of oil and gas pipes also fell. According to the price data calculated by the well-known industry consulting agency "British Metal Herald", taking a mainstream oil well pipe variety as an example, the average price of this variety in the United States in 2019 is $ 1,399 / ton, a decrease of $ 198 / ton compared with 2018, a decrease It is 12.4%, and if the average price at the end of 2019 is US $ 1190 / ton compared with US $ 1570 / ton at the beginning of the year, it will decrease by US $ 380 / ton, a decrease of 24.2%. It can be seen that the overall oil and gas market in 2019 is relatively cold.

These changes in the energy industry in 2019 will directly affect the operations of the two major steel pipe industry giants, the Tenaris Group and the Vallourec Group, in 2019.