Feb. 5, 2014 -- According to Industrial Valves: World
Markets published by the McIlvaine Company, the upstream
oil and gas industry will spend for the first time more
than $10 billion for
valves in a single year.
In 2015, the expenditure is predicted to be $10.3
billion, which includes valves purchased for oil and gas
extraction. Further, it includes those used in
unconventional extraction such as from subsea shale and
oil sands. The forecast also includes valves used in LNG
and gas-to-liquids plants. The shale gas boom is resulting
in LNG and gas-to-liquid plant construction, and large
numbers of valves are required to operate these plants.
Revenue values include valve and valve actuator when actuator is supplied with valve by valve manufacturer. (Photo credit: McIlvaine) |
The Middle East remains the historic leader, but NAFTA will
be a close second. The U.S. shale gas and oil expansion and
the Canadian tar sands investments are providing substantial
valve markets; these forecasts do not include
refineries. However, the lower-quality crudes being
extracted in NAFTA are spurring investments in refinery
valves due to upgrades.
A larger percentage of the valve spend is now directed at control of water and wastewater. Hydraulic fracturing requires extensive valving -- up to 30 chemicals along with sand are mixed with water prior to injection. Likewise, the flowback water in many states cannot be discharged into underground storage because t is too contaminated to be treated by conventional sewage treatment plants. The result is a significant treatment investment.
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