Published By : 18 May 2016 | Published By : QYRESEARCH
Static and rotating equipment are a key part of the overall value chain of the oil and gas industry. It is used in almost every process in oil and gas production. The performance of several crucial processes in the exploration and production processes of oil and gas depends upon the reliability of static and rotating equipment. This leads to the market for static and rotating equipment emerging as a key ancillary market of the oil and gas industry.
Global Static and Rotating Equipment Market to be Valued at US$35.8 bn by 2022
According to a recently released report from Transparency Market Research, the market for static and rotating equipment in the oil and gas industry was worth US$26.5 bn in 2013. The market is likely to exhibit a 3.7% CAGR from 2014 to 2022, rising to a valuation of US$35.8 bn by 2022. Of the two types of equipment in the global market, static equipment dominated the global market in 2013, when it took up a 52.8% share in the market.
Rising Unconventional Production of Oil and Gas Drives Global Market
The major driving factor propelling the global market for static and rotating equipment is the rising utilization of unconventional oil and gas extraction processes. The dropping levels of onshore petroleum reservoirs have led to several oil and gas companies looking at viable alternatives to maintain the current production figures. Among the several unconventional oil and gas extraction methods, shale gas has emerged as an important option. The rising demand for production of petroleum from shale gas reserves is expected to boost the utilization of static and rotating equipment in the near years.
North America to Remain Dominant in Global Static and Rotating Equipment Market
In terms of geographical distribution of the global market, North America is the leading market for shale gas. Countries such as China and Argentina are also set to increase their shale gas production in the near future, giving a boost to the static and rotating equipment market in these regions.
The rising demand for offshore and shale petroleum extraction has resulted in the establishment of new petroleum refineries, in addition to several capacity expansion projects in existing ones. Continued construction of new refineries will also provide a promising sales channel for the static and rotating equipment industry in the coming years.