According to a report published by the McIlvaine Company, N049 Oil, Gas, Shale and Refining Markets and Projects, billions of dollars of flow control and treatment equipment will be purchased by the oil, gas and refining industries in the next 12 months.
While the low oil prices have greatly reduced capital spending, in some cases, the slowdown has created new markets. The reduction in drilling means that producers no longer have a route for returning produced water. This has caused an uptick in orders for zero liquid discharge (ZLD) systems.
Petrochemicals expansion in the US is continuing and may even accelerate with the recent Federal Energy Regulatory Commission (FERC) decision not to authorize the Jordan Cove pipeline which would have provided an export route. Shell Chemical just broke ground on a USD $717 million expansion of its linear alpha olefins manufacturing plant in Geismar, Los Angeles. The project will make Shell Chemical’s Geismar location the largest single-site producer of alpha olefins in the world. The three-year project will culminate with Shell Chemical beginning operation of the new manufacturing plant in early 2018.
For more information on N049 Oil, Gas, Shale and Refining Markets and Projects, visit http://home.mcilvainecompany.com/index.php/markets/28-energy/471-n049