Oil and Gas
Overview of the global natural gas pipeline market
Market research analysts at Technavio predict that the global natural gas pipeline market will grow moderately during the next four years and will reach a natural gas pipe length of more than 2651 miles by the end of the forecast period. This market research analysis identifies the decline in steel prices as one of the primary growth factors for this market. Steel is one of the major raw materials used in manufacturing natural gas pipelines and studies have shown that the cost of steel amounts to almost 16% of the total cost for manufacturing one mile of gas pipeline. As a result, the current trend of decreasing steel prices will signifiacntly drive the growth of the natural gas pipeline market in the next few years. Though the rise in energy prices increases the manufacturing costs, the reduction in prices of Iron ore and steel scrap, which are used as raw material to make steel, will fuel the growth of the natural gas pipleine market over the forecast period.
The need to rationalize the flow of data, make real-time choices, improving asset performance, and product quality, will soon result in the adoption of Internet of Things (IoT) by the oil pipeline industry. Through regular monitoring, tracking, controlling, and asset management, IoT will provide a detailed diagnostics and will also allow real-time data sharing. Moreover, IoT can also be used to report preventive maintenance directly at the source, which will allow immediate corrective responses that aids in minimizing leakages.
Competitive landscape and key vendors
The natural gas pipeline market plays a significant role in the global oil
Overview of the global crude oil pipelines market
Market research analysts at Technavio have predicted that the global crude oil pipelines market will grow moderately during the next four years and estimate the total length of crude oil pipelines to reach almost 538 thousand miles by 2020. The major hydrocarbon-rich regions identified in the early 20th century have started to change significantly, which will induce the exploration and production (E&P) companies to start oil and gas exploration activities in unconventional avenues. This market research analysis identifies this shift in the base of crude oil reserves as one of the primary growth factors for this market. The recent years have seen a significant reduction in the rate of production in the established areas such as the Middle East, the Gulf of Mexico, and the North Sea. As a result, crude oil companies have moved their exploration activities to relatively new areas such as the Yamal basin in Russia, the Andaman Sea in the Indian sub-continent, and most significantly regions in the Arctic and Antarctic. This will subsequently lead to the need for linking the producing regions to the consumer bases, in turn, fueling the growth of the market.
The transportation of heavy crude through pipelines is one of the major challenges faced by crude oil pipeline operators. The high density of these crude oils and rapid cooling makes their transportation through the long distance pipelines very cumbersome resulting in several operational issues in the pipeline system. This will lead to the increasing adoption of heated pipeline technology among oil and gas pipeline companies in the next four years. With the upstream oil and gas areas moving into hostile environments and the global change in climatic conditions, this technology will play a significant role in the growth of the market.
Competitive landscape and key
Global outlook of the floating production system market
Technavio’s market research analysts have predicted that the global floating production system market will grow steadily during the predicted period and will post a CAGR of almost 18% by 2020. The use of FPSO vessels is effective in remote or deep water locations since the incorporation of seabed pipelines in such locations incurs massive costs. Also, FPSO eliminates the requirement for long-distance pipelines from the oil well to onshore terminals. They prove to be more economical in smaller oil fields and marginal fields since these oil fields deplete in a few years and installing a fixed platform solution is not cost-efficient. Moreover, the FPSO unit can be moved to a new location once the field depletes and can also operate in harsh environments. The floating units can also navigate to safety during emergency situations, where the FPSO turret sinks beneath waves and can be reconnected later.
This market research and analysis estimates that the rise in deep water and ultra-deep water exploration will be one of the major trends to gain traction in the market in the next four years. New reservoirs are being discovered to meet the demand and supply of petroleum products. The recent discovery of a massive oil reserve in Golan Heights by an Israeli company and the discovery of a reservoir by BP will induce several other organizations to accelerate their exploration activities, in turn, driving the growth of the floating production system market.
Competitive landscape and key vendors
Characterized by the presence of several large international FPSO companies across the globe, the market appears to be highly fragmented. As all players equally compete to gain a better revenue share, the market is highly competitive. Intense competition
Global outlook of the wellhead equipment market
Technavio’s market research analysts have predicted that owing to constant production and exploration from reservoirs, the global wellhead equipment market will grow steadily during the predicted period and will post a CAGR of almost 3% by 2020. This industry research report identifies the increase in offshore E&P activities to be one of the major factors that will have a positive impact on the growth of this market in the coming years. The increase in demand for oil and gas in the recent years have led to a rise in the exploration and development activities. Moreover, the decreasing process of oil and gas has also decreased the prices of goods and services, especially for high-cost offshore assets. Focusing on reducing their capital expenditure (CAPEX), several companies will start focusing on E&P activities in their offshore plants. For instance, North Drilling based in Iran is expected to increase its offshore rig count on the Salman oil field by adding five more rigs in the Persian Gulf. Such increase in exploration activities will subsequently lead to the rise in demand for new wellhead equipment, augmenting the market’s growth prospects in the coming years.
In terms of geographical regions, the Americas will account for a major share of about 68% of the total market shares by 2020 and will also dominate the market throughout the forecast period. Governmental support across different countries in the region, especially in the US is expected to drive the demand for wellhead equipment in the next few years. For instance, government initiatives such as the US offshore oil and gas development federal program is aimed at exploring several unexplored oil and gas offshore reserves. Also, the massive pre-salt discoveries in offshore Brazil located in the Santos and Campos basins will also drive
Overview of the global PPM and IT governance market
Market research analysts at Technavio have predicted that the global PPM and IT governance market will grow steadily at a CAGR of more than 11% by 2020. This market research analysis identifies the need to optimize project management process as one of the primary growth factors for this market. Enterprises across the globe are constantly working to improve their overall efficiency through capacity optimization, reduction in operational costs, and driving profits using IT infrastructure. PPM and analytics software helps in enhancing an organization’s processes by improving quality and resource control, which in turn, results in improving the overall productivity and efficiency of the enterprise. Project portfolio management software also helps organizations meet their business demands rapidly and remain competitive in the market, which will compel several organizations to deploy PPM software at their facilities in the coming years.
Information management comes as one of the key aspects of project management and managers often have to collect and analyze a lot of information regarding ongoing projects. Virtual reality solutions such as augmented reality can be used in project management systems. Augmented reality technologies are currently employed in construction-related projects to view projects status in a real-time environment. They can provide real-time information in the form of text and 3D or 4D images and can also be used for information management of a portfolio of various projects.
Competitive landscape and key vendors
Characterized by the presence of a wide range of PPM vendors, the
Overview of the global biofuels market
Market research analysts at Technavio have predicted that the global bio-fuels market will grow steadily at a CAGR of almost 6% by 2020. The uncertainty in global fuel prices, energy security, and the constantly rising emission levels have resulted in the growing interest towards alternate fuels. Constant efforts in R&D will lead to the large-scale commercialization of biofuels since their performance is similar to that of gasoline and diesel. Moreover, the depletion of fossil fuels also leads to the requirement of renewable biofuels. Biofuels can be used in regular vehicles with minimal or no engine modification, which will encourage the use of blended fuels in vehicles. Also, biodiesel emits lesser greenhouse gas, emits less than 15 parts per million sulphur into the atmosphere, and reduces hydrocarbon emissions. Such benefits over conventional fuel will drive the demand for biofuel production during the forecast period.
In terms of geography, EMEA will dominate the market by the end of the forecast period and will account for about 42% of the total market shares by 2020. Germany, Netherlands, and France are major contributors for the growth of the market in this region. Regulatory policies, such as the renewable energy directive (RED) has laid out sustainability requirements from biofuels and helps countries in the EU in setting up and reaching individual targets. Additionally, exponential consumption of energy in the Middle East and Africa due to urbanization and constant infrastructure development activities have led to the heavy dependence on fossil fuels. This will induce governments to diversify their energy mix; thus, driving the growth of the biofuels market in the next four years.
Competitive landscape and key vendors
The market is characterized by
The oil and gas sector is transforming, with greater diversification and expansion of upstream, midstream, and downstream operations.
In the upstream segment, exploration of unconventional sources, like shale gas, tight gas, coal bed methane, and heavy oil, is the new area of focus for oil and gas experts. The shale gas revolution has been a big game changer for the US economy, and several other countries are expecting similar booms in the near future.
The downstream (oil and gas refinery) sector is also experiencing growth because of the increasing production of shale gas and tight gas.
Since the onshore oil and gas industry has reached a saturation point, attention is now turning to offshore operations.
However, growing environmental concerns have now compelled governments to mandate strict regulations on oil and gas production, which is likely to impact business dynamics in this market significantly through the projected period.