Oil and gas plant spending to rise
19 Feb 2004
Spending on process equipment by the oil and gas industry is set to rise sharply in the coming years, according to a report from market researchers at the ARC Advisory Group.
The worldwide market for 'plant-level' expenditure, both in the exploration and production and the refining stages, will rise from $196billion in 2003 to almost $218billion by the end of 2008, the company says in a new report.
The need to comply with new regulations is one of the major factors behind the rise, the report says. For example, companies are installing equipment to limit sulphur emissions, to comply with the Maximum Achievable Control Technology (MACT) II regulations, while in the US, the Environmental Protection Agency is attempting to regulate routine repair, replacement and maintenance activities for refineries.
'Even in developing countries, environmental regulations are forcing additional CapEx for processing equipment,' say the report's authors, Dave Clayton and Ravi Murthy.
The most important equipment category for most companies is valves, the report says. 'Increasing investments in digital valve positioners to provide remote monitoring and self-diagnostic capabilities is a key factor in meeting emission-control regulations,' says the report.
Moreover, many firms are replacing improperly-sized valves on their refineries to reduce valve emissions.
