10232017Mon
Last updateMon, 23 Oct 2017 7pm

i

Projects Valued at $17B Increase Sept. Construction Starts 31.5%

According to ConstructConnect, September’s volume of construction starts, excluding residential activity, was $42.8 billion. The month-to-month change versus August was an outsized +31.5%. The big improvement in the latest period was thanks to go-aheads for three mega projects combining for a total of $17 billion.

The three extraordinary projects were an Exxon Mobil petrochemical plant in Texas ($10 billion categorized as industrial); the new Delta Airlines Terminal at LaGuardia Airport in New York ($4 billion categorized as civil/engineering); and the Atlantic Sunrise natural gas pipeline in Pennsylvania ($3 billion, also in the civil/engineering type-of-structure category).  


Crude Oil, Petroleum Product Exports Reach Record Levels

According to the U.S. Energy Information Administration (EIA), crude oil exports in the first half of 2017 increased by more than 300,000 barrels per day (b/d) from the first half of 2016, reaching a record high of 0.9 million b/d. Petroleum product exports also grew over the same period with propane and distillate exports reaching record highs of 0.9 million b/d and 1.3 million b/d, respectively.

Canada remained the largest recipient of U.S. crude oil exports at 248,000 b/d in the first half of 2017 but imported an average of 46,000 b/d fewer than in the first half of 2016. China increased its crude oil imports from the U.S. by 154,000 b/d and became the second-largest importer of U.S. crude oil, averaging 163,000 b/d in the first half of the year. 

Energy Intensity in U.S. Manufacturing Decreased

Energy intensity in manufacturing in the U.S. decreased from 2010 to 2014. U.S. manufacturing overall fuel intensity decreased by 4.4% from 3.016 thousand British thermal units (Btu) per dollar of output in 2010 to 2.882 thousand Btu in 2014. According to the Manufacturing Energy Consumption Survey (MECS), U.S. manufacturing fuel consumption rose 4.7% from 2010 to 2014, although real gross output increased more rapidly at 9.6%.

Generally, the most energy-intensive U.S. industries' share of manufacturing gross output declined from 2010 to 2014 (35.1% of total manufacturing to 32%), although they maintained the same share of fuel consumption (80.7%). The group of energy-intensive industries as a whole actually increased in energy intensity by 4.6% as the rest of manufacturing decreased by 8.5%. The shift in output toward less energy-intensive manufacturing contributed to the decline in overall manufacturing energy intensity in the U.S. 

Shale Gas Leading to Billions in Chemical Investments

After years of high and volatile natural gas prices, new domestic supplies of more affordable natural gas and natural gas liquids (NGLs) have created a competitive advantage for U.S. chemical manufacturers, leading to greater investment, industry growth and new jobs. Companies from around the world are investing in new projects to build or expand their shale-advantaged capacity in the U.S. As of July 2017, the American Chemistry Council (ACC) is tracking 310 projects cumulatively valued at $185 billion in capital investment, with 52% completed or under construction and 48% in the planning phase. Much of the investment is geared toward export markets for chemistry and plastics products, which can improve the nation’s trade balance. Fully 62% of the announced investment is by firms based outside the U.S. 

Oil Demand May Peak in the Near Future

Demand for oil in developed countries will revert to structural decline by 2020, wiping out about four million barrels per day by 2035. In contrast, developing economies will increase their demand for oil by nearly 16 million barrels per day by 2035.

While transport demand will flat-line around 2030, Wood Mackenzie forecasts continued growth in overall global oil demand, supported by the petrochemical sector. Nonetheless, the prospect of peak oil demand is very real. The industry needs to start planning now if it is to be prepared for what lies ahead. 

Subscribe SUM17

FREE SUBSCRIPTION*

• Print magazine
Digital magazine
• VALVE eNews
Read the latest issue

*to qualified valve professionals in the U.S./Canada

BUYERS GUIDE 300x220
Advertisement

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association

  • Latest Post

  • Popular

  • Links

  • Events

New Products