The upstream oil and gas industry is expected to spend more than $10 billion for valves in a single year, with the expenditure in 2015 projected to be $10.3 billion, according to a report by the McIlvaine Company.
This includes valves purchased for oil and gas extraction, as well as those used in unconventional extraction, such as from subsea shale and oil sands. The forecast also includes valves used in LNG and gas-to-liquids plants. The U.S. shale gas and oil expansion and the Canadian tar sands investments, in particular, are providing substantial markets for valve-related products.
*Revenue values include valve and valve actuator when actuator is supplied with valve by valve manufacturer.
These forecasts do not include refineries. However, the lower quality crudes being extracted in NAFTA are spurring investments in refinery valves due to upgrades, the report says. Also, a larger percentage of the valve spend is now directed at control of water and wastewater.
Hydraulic fracturing requires extensive valving, the report says. Up to 30 chemicals, along with sand, are mixed with water prior to injection. The flowback water in many states cannot be discharged into underground storage, and it is too contaminated to be treated by conventional sewage treatment plants. The result is a significant treatment investment.
For more valve-related news and products, go here.