The Oil and Gas Industry Will Pay $19 Billion for Valve Solutions in 2015
The oil and gas industry is challenged with process, logistical and safety issues which cause it to look to valve suppliers and other vendors to minimize operational and maintenance problems.
The operators will pay $6 billion for these services next year. When the expenditures for valve repair parts and services are added, the total addressable market next year is $9 billion. This is the conclusion reached in the continually updated Industrial Valves: World Market published by the McIlvaine Company.
The above revenue forecasts do not include the $10 billion for new valves which the oil and gas industry will spend next year. So the total market in oil and gas for valve suppliers taking the total solutions approach is $19 billion in 2015.
Asia will be the largest segment. This is based on Decisive Classification. The segmentation is part of a system which divides the world into eighty significant markets. Most of the eighty are individual countries but in each sub region there is also an aggregation of small countries. At the top, the world is divided into four continent combinations. Asia includes East Asia, West Asia and the Middle East. Africa includes the whole continent including both the South and the North. Europe includes both the West and East. The Americas includes both the North American and South American continents.
Process changes and developments require new approaches and more reliance on third parties with the knowledge to address new situations. The development of LNG, gas-to-liquids, shale gas and subsea extraction all involve difficult valve maintenance and operational challenges. A number of companies are assisting oil and gas operators with services and products under the classification of “Total Solutions”.
Source: The McIlvaine Company