The global midstream oil and gas equipment market is segmented by product type, application and regions. Based on product type, the market is segmented into pipe, gas treating & processing equipment, rail tank cars, compressor, pumps, valves, instrumentation equipment, storage tanks and others. On the basis of application into gas processing tanks, pipelines, LPG facilities, crude by rail and others. The oil & gas industry has three major classifications: upstream, midstream and downstream. The midstream oil & gas industry comprises of storage, transportation and wholesale marketing of crude or refined petroleum products. The midstream industry transports crude oil from production sites to refineries and distribute the several refined products to respective downstream industries. The midstream oil & gas equipment market is moving on a sluggish rate in the global scenario.
The global midstream oil & gas equipment market is anticipated to have a decline at a CAGR of around -1.9% during the forecast period i.e. 2019-2027. The sector faces a number of supply-related challenges. First is an ongoing decline in new discoveries. By the end of 2017, the volume of new oil and gas discoveries, was at its lowest since the early 1950’s. To put this into context, only 3.5 billion barrels of liquids (crude, condensate, and natural gas liquids) were discovered in 2017, which was enough to meet only 10 percent of demand. This is due to difficulty in finding out the large discoveries known as “elephants” and most prospective areas which has already been explored.
By region, the global midstream oil & gas equipment market is segmented into North America, Asia-Pacific, Latin America, Europe, Middle East and Africa. In some regions, the supply disruption is linked to geopolitical disputes. For instance, the economic distress in Venezuela has resulted a decline in the production to 1.5 million bbls/d, a 40% decrease from the 2.5 million bbls/d the country was producing in early 2015. If the country is about to suffer an economic collapse, almost 2 million bbls/d of oil supply could come offline. In Libya, present output is around 990,000 bbls/d, which is well off from the 1.5m bbls/d this country was producing in 2012. As a consequence its reserve cutbacks, OPEC’s spare capacity ending 2017, as stated by the U.S. Energy Information Administration (EIA), was 2.1 million bbls/d, almost half of the 4 million bbls/d it had in 2010.
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Declining Investments Approvals in Conventional Sources
U.S shale oil is a dynamic new source of supply, investment in more conventional sources of output has dropped and, as a result, “the world needs to find an additional 2.5 million bbls/d of new production each year, just for conventional output to remain flat” on the word of IEA World Energy Outlook, 2017. Given that, it takes about three to six years for the process, project sanctioning to coming on stream, the decline in investment approvals during the price slump could continue to hurt the sector if financial investment decisions remain constrained.
Another challenge posing the industry confronts is supply disruption. In prevailing oil fields, productions are declining, and this decline rate is accelerating by about 4% per annum. Current inclination in spending are insufficient to ensure discovery of enough new fields to replenish this decline.
The report titled “Midstream Oil and Gas Equipment Market: Global Demand Analysis & Opportunity Outlook 2027” delivers the detailed overview of the global midstream oil and gas equipment market in terms of market segmentation by product type, application and by region.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model. This report also provides the existing competitive scenario of some of the key players of the global midstream oil and gas equipment market which includes company profiling of key companies such as Abbot Group Services, Baker Hughes (GE), Schlumberger Limited, Halliburton, Weatherford, TechnipFMC plc, National Oilwell Varco, Exterran Corporation and Sulzer Ltd. The outlining enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the global midstream oil and gas equipment market that is expected to help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
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