Global Process Plant Equipment Market in Downstream Oil and Gas Industry 2016-2020
About Oil and Gas Industry
The oil and gas industry can be broadly segregated into upstream, midstream, and downstream segments. Upstream refers to the exploration and drilling of oil and gas. Midstream constitutes the transportation of crude oil and natural gas to the refineries. Downstream refers to the refining of crude oil and gas into a pre-defined range of products according to specifications. The relative quantities of the refined products are directly dependent upon the quality of crude used.
Technavio’s analysts forecast the global process plant equipment in downstream oil and gas industry to grow at a CAGR of 1.18% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global process plant equipment in downstream oil and gas industry for 2016-2020. To calculate the market size, the report considers the planned refining capacity and equipment used in refineries.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Process Plant Equipment in Downstream Oil and Gas Industry 2016-2020
Technavio recognizes the following companies as the key players in the global process plant equipment in downstream oil and gas industry: Fluor, Hyundai Engineering, Saipem, Samsung Engineering, and Technip.
Other Prominent Vendors in the market are: Bechtel, CB&I¸ Jacobs, KBR, Larsen & Toubro¸ NPCC¸ Petrofac¸ SK Engineering & Construction, Technicas Reunidas, and Worley Parsons.
Commenting on the report, an analyst from Technavio’s team said: “The players in the oil refining industry have started increasing their operations in other countries, especially in countries that present greater demand for petrochemical and refined products. A prominent example of this would be the plans of Saudi Aramco to increase its footprint in the upcoming fuel demand centers in Asia. The company is analyzing the countries where it wants to set its refineries. The countries under consideration are China, Indonesia, Malaysia, Vietnam, and India. Rather than expanding its refinery capacity in Saudi Arabia itself, it plans to construct more refineries in demand centers in Asia in a bid to expand its refining margins. It already has a refinery in JV with Exxon and China Petroleum and Chemical Corp. in China's Fujian province. It is talks with CNPC to set up more refineries in the country. Many other prominent companies are expected to follow such a strategy to increase their market shares in upcoming demand centers. This trend is expected to become more prominent in the medium to long-term future and would boost the process plant equipment market accordingly.”
According to the report, increase in complexity index of refineries will be a key driver for market growth. Refineries in the US are generally highly complex. However, following the advent of light tight oil and condensates, refiners in the US have set up splitters to enable the separation of the light and heavy distillates. As a result, capacity additions in this region primarily consist of upgradation of old refineries, rather than the construction of new refineries. Upgradation activities across countries is resulting in higher demand for process plant equipment, thereby driving the market during the forecast period.
Further, the report states that the growth of the refining industry in any country is predicated on the political stability in that nation. Political instability has become a major challenge in countries dealing with riots and terrorism. Such instability increases the risks associated with the safe operation of an oil refinery. Investors are wary of investing in such countries where regulations are susceptible to change. In addition, the threat of misuse of refining operations by anti-social elements forces companies to suspend operations.
Fluor, Hyundai Engineering, Saipem, Samsung Engineering, Technip, Bechtel, CB&I¸ Jacobs, KBR, Larsen & Toubro¸ NPCC¸ Petrofac¸ SK Engineering & Construction, Technicas Reunidas, and Worley Parsons.