Midstream: The Growing Process Segment

While the traditional view of the oil and gas distribution system held only two segments, upstream and downstream, the now more widely accepted model shows three segments. All of the processes between the wellhead and the refinery gate are now considered “midstream.” In his presentation at VMA’s Leadership forum in Dallas, January 2013, Paul Hart, editor of Midstream Business, analyzed the opportunities in this segment of the oil and gas industry.

Market Outlook 2013: Power Industry

A report from the VMA Market Outlook Workshop, held in August 2012:

The best bet for manufacturers selling to the power industry is the international market, especially in coal, according to Kevin Geraghty, VP of Power Generation for NV Energy. Despite the fact there is such a huge push in the developed world for renewables to be a larger part of the energy mix, the developing world is seeking a low-cost, high efficiency base load power to improve citizens’ standard of living.

Hydraulic Fracking: Initiatives Coming

A report from the VMA Market Outlook Workshop, held in August 2012:

Although hydraulic fracturing of shale rock (fracking) has received some bad publicity, the reality is that there has never been even one confirmed instance of groundwater being tainted anywhere in the world from the process, according to Stuart Kemp, assistant general counsel at Halliburton Energy Services.

What’s in Store for 2013?

A report from the VMA Market Outlook Workshop, held in August 2012:

Attendees at this year’s workshop were buoyed by relatively positive messages from all of the speakers, including Alan Beaulieu of the Institute for Trend Research and Michael Halloran of Robert W. Baird and Company.

Market Outlook 2013: Brazil

A report from the VMA Market Outlook Workshop, held in August 2012:

In the last few years, Brazil has been an important and growing market for manufacturers. But Christopher Garman, Director, Latin America and Emerging Market Strategy of the Eurasia Group, noted that its economy is slowing down, partially due to interventionism and protectionism, but also due to the fact that the growth model based on consumption could be reaching its limit there as in other parts of the world.

Market Outlook 2013: Oil and Gas

A report from the VMA Market Outlook Workshop, held in August 2012:

John Spears of Spears & Associates works with domestic and international petroleum industry equipment and service firms, financial institutions and government entities, making him uniquely qualified to track market size and share for over 30 segments of the petroleum industry. Spears reminded this year’s attendees that at last year’s Market Outlook Workshop, the general consensus was that we would see a slow growth economic environment and relatively stable commodity prices in 2012.  Oil was expected to hover around $90 while gas would be about $4. In that environment drilling activity was expected to go up. However, things didn’t quite go that way, partly due to the very warm winter.

Rise in Valve Shipments Signals Growth in Economy

The Valve Manufacturers Association (VMA) recently released its latest annual market forecast for valve shipments. In it, plenty of good news because, for the third year in a row, shipments for the U.S. and Canadian industrial valve industry are forecast to grow, rising to about $4 billion in 2012.

That’s a rise of about 2.2% from 2011 levels of $3.915 billion and equal to the industry’s 10-year peak in 2008.

“Although the rise is slight compared to some year-to-year increases early in this decade, the fact that we witnessed three years of growth through a difficult economy shows how strong the valve industry is,” said VMA Chairman Bruce Broxterman, president, Richards Industries. “We expect the gains to continue over the next few years.”

Industrial Outlook: Continued Strength in Planned Project Spending

Continued strength in North American industrial project activity in November lent support to a gradually strengthening U.S. economy. According to an analysis by Industrial Info—a leading provider of global industrial market intelligence—the North American Industrial Spending Index rose 30% compared to year-earlier scheduled project spending. In fact, November marked the 12th consecutive month this index has shown double-digit increases in industrial project spending. (See chart, Year over Year Change).

It’s a Different World, Forecasters Proclaim

When speakers at the VMA Market Outlook Workshop walked into the presentation room in August of this year, they faced a situation where federal budget battles, a wildly fluctuating stock market, the first-ever downgrading of U.S. credit standing and other developments had pulled the rug out from under an already sluggish economy.

But although speakers admitted that a few predictions may need to be revised, their overall forecast was the same: the valve, actuator and pump market is doing well and poised for a brighter 2012. Most presenters also agreed that while no double-dip recession is in sight, this recovery is nothing like recession recoveries of the past—strategies may need to be different.

“There is still force in our sails … it just might be time to adjust those sails to the prevailing winds,” Alan Beaulieu, economist and president of the Institute for Trend Research, emphasized.

The State of U.S. Refining: Increased Output, Canadian Ties

One of the overall trends in the refining industry in this country today is that, while the number of refineries being built is stagnated and has been for many years, the operable capacity of the refineries has steadily increased, remaining strong during the economic recession, according to Cindy Schild, refining issues manager for the American Petroleum Institute. She spoke before a group of valve and pump professionals at the Valve Manufacturers Association’s annual Market Outlook Workshop, held Aug. 11-12 in Boston.