Global Analysis of the Pump Market in the Oil & Gas Industry
The global pump market in oil and gas stood at a staggering $9 billion market in 2014.
Although the growth rate for pumps is expected to be low during the current year because of the recent weakness in investments in oil and gas, the compounded growth over the next five years is expected to be 3.2 percent. Conventional sources of oil and gas continue to dominate global production, while unconventional sources lead to a higher growth rate in the pump market. A number of factors shape the pump market in oil and gas, including shale production in the U.S., oil sands in Canada, discovery of other conventional reserves in Latin America and deep-water discoveries in Asia Pacific. The upstream sector in oil and gas generated the most revenue for the pump market as significant investments occur in offshore and onshore exploration and production activities.
In this industry, centrifugal pumps are primarily used in midstream and downstream applications across pipelines for transportation, storage and terminals. Some pumps, including horizontal multi-stage pumps, are used for water injection and other treatment applications. Such pumps must be highly engineered based on the specifications required by the oil producers.
Centrifugal pumps typically have lower maintenance costs, are easier to change parts and can be configured easily for different applications in comparison with PD pumps. Vertical turbine pumps are regularly used in booster stations, while in downstream applications the opportunities for sealless pumps are increasing.
Investment in downstream is uncertain in regions such as Europe, while some activity continues in Asia. Regardless, the growth for the pump market is expected to have a moderate demand. Investment in specific pockets of upstream such as subsea will lead to a high growth rate for centrifugal pumps required for water-handling subsea activities.
The growth rate for PD pumps in oil and gas is expected to be low for the current year as a number of projects face postponement in investments. However, because of recovery in oil prices and continuing upstream activities, the growth of PD pumps is expected to recover fairly rapidly. These pumps are used heavily in wells where flow is declining and in places where crude oil may contain sand content. Reciprocating pumps are predominantly used for shale exploration and production in high-pressure applications such as frac pumps. Metering pumps are often used in exploration and production activities as well.
In the long term, the oil and gas industry continues to dominate the energy requirement globally. The current market is expected to continue moderate growth as investments in extraction from more inaccessible locations intensify. These factors are expected to drive the pump market and maintain an active demand from this industry.
Sakthi Pandian, Global Analysis of the Pump Market in the Oil & Gas Industry [J] .chinavalvepump.
Post time: May-22-2019