Oil and gas industry to spend over $10B for valves in 2015, finds study

Sponsored by


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.

###



Sponsored by

TODAY'S HEADLINES

Water sector groups announce Water Week 2015 taking place in April

Next month, a diverse group of major U.S. water sector organizations will come together and join forces in Washington, D.C., to support Water Week 2015.

Xylem appoints new senior vice president, president of Emerging Markets

Xylem announced that it has appointed Steven Leung as senior vice president and president of Emerging Markets for the company -- a newly created position -- effective Wednesday, April 1, 2015.

Badger Meter officially named platinum sponsor of ACE15

For the third consecutive year, Badger Meter has been named the Platinum Sponsor of American Water Works Association's 134th Annual Conference and Exposition, taking place June 7-10 at the Anaheim Convention Center in the city of Anaheim, Calif.

Central Basin, Park Water extend partnership for recycled water project

Park Water Company recently announced that it has been awarded a two-year extension for its current contract to operate and maintain Central Basin Municipal Water District's E. Thornton Ibbetson Century Water Recycling Project.

FOLLOW US ON SOCIAL MEDIA