Oil-and-Gas Deserves a Closer Look
An interesting topic for readers is tied to oil-and-gas production. Why? Because U.S. manufacturing companies making metal pipes and materials/machines to produce, transport and process these fossil fuels is a major activity in our world.
We will focus not on what is under way, which is a lot, but more on what is planned and where in an effort to look at tomorrow’s new business opportunities. As of early 2019, the total planned new construction for liquid and gas pipe transport was projected to be (in miles): Africa 18,196, Asia-Pacific 13,953, Middle East 5,955, South/Central America 14,751, Russia 9,841, Western Europe 5,708 and North America 26,545. These are predictions by solid industry sources, energy producers and those who supply them. This represents an enormous amount of pipe and machinery in new business for industry.
It is projected that the majority of world new oil and gas will come from these sources: U.S. 61%, Canada 7%, Brazil 3%, Russia 2.9% and all other countries 26%. New pipeline needs, however, are not only driven by new supply locations but to enhance the existing needs of producing fields and to replace old lines. The U.S. is expected to install the most trunk pipeline length of global infrastructure between 2019 and 2023, about 18% of all new constructions, according to GlobalData. The Express Platte Twin Expansion project is expected to be the longest project – 1,560 km running from Guernsey, Wyo., to Patoka, Ill. – built during this period.
This is mentioned to give readers background about an enormous and changing market need. It is up to readers to assess and survey these leads for specificity. Current construction and outstanding proposals total $232.5 billion for action between 2017 and 2035. And this pace will accelerate. Gas has overtaken coal in the power-generation sector and globally reflects a reducing coal market share from 27% in 2017 to 25% in 2023. Look at China, where Paris-based International Energy Administration forecasts their domestic gas production will jump 142% by 2040.
The markets at home and abroad are there, and they are enormous. If your firm does not want to chase around the world, just go to Singapore. The Asia-Pacific region accounts for use of about 70% of global LNG demand today and will increase over the next 10 to 15 years. Demand growth is driven by the developing economies of the region, so these are currently wide-open opportunities.
Here are some other pipeline infrastructure planned project opportunities. In Africa, Anadarko is building a $20 billion gas liquefaction and export terminal in Mozambique. Noble Energy will begin off-shore gas facilities in Equatorial Guinea to carry gas 45 miles to onshore facilities. Tanzania and Zambia will build an 840-mile refined-products pipeline between the two countries. Uganda will build a 900-mile pipeline for the export of oil. In South Asia, India gas company H-Energy Pvt. Ltd. is building an LNG import terminal but must add a 400-mile pipeline for deliveries.
In Jordan, there is a planned 1,000-mile pipeline that has been agreed upon by Jordan, Egypt and Iraq. Lebanon plans to replace obsolete distribution pipelines. In South America, ExxonMobil will build a pipeline and export facility in Argentina in cooperation with state oil company YPF, a $5 billion project through 2022.
So there you have it. This page tells you what is going to happen. It’s up to you to take advantage of these opportunities.