Key As Supply And Demand Move Toward Balancing By Rick W. Preckel and Paul E. Vivian ST. LOUIS-A prime topic of discussion among manufacturers and distributors of oil country tubular goods, as well as oil and gas producers themselves, is how much of today's inventory is active and how much is obsolete or unusable. OCTG manufacturers and importers need the answer to that all-important question to help with pricing, and to be prepared when orders pick back up with respect to sourcing raw materials, crewing, etc. Distributors need to know to help them determine when to place orders for new pipe to avoid missing out on end- user orders, and end-users need to know so as to not miss drilling opportunities. Inventory questions are a typical part of every oil and gas cycle-whether the market is up or down-as suppliers and users alike attempt to manage their supply chains and plan for business expectations. As with many other aspects of the oil and gas industry, knowledge is the key to preparedness. SEPTEMBER 2016 73