Pumps in the Global Oil and Gas Industry

In an industry that typically cycles, the peaks and valleys in this timeframe seem more pronounced as the world has faced supply and demand challenges, as well as an unprecedented global recession.

The crude oil price spike that occurred in 2008 (shown in Figure 1) had numerous ramifications for everything from consumer budgets to political policy to a boost for alternative fuel solutions and conservation. As one of the major user verticals for pumps, this industry can produce flush or lean times for pump manufacturers. In this article, we explore the expected forecast for pump revenues in the global oil and gas industry, as well as some of the major trends and issues expected to affect pump demand in the near future.

Global Pump Forecast

In 2009, pump revenues in the global oil and gas industry were estimated to be slightly more than $6 billion. As shown in Figure 2, the global market as a whole is in a relatively flat period, and is expected to gradually recover to more "normal" growth rates by the end of the forecast period (2016)

Growth is naturally expected to vary by world region, with North America and Europe expected to grow at a notably slower pace than Asia and portions of South America during this timeframe. Growth is expected to vary within the sub-segments of upstream, midstream and downstream. For the last couple of years (and currently), the upstream segment has generally been strongest as the refinery slice of the business has been hit hard with sagging demand related to more effective efforts at energy conservation and alternative fuels, especially in North America and Europe. Upstream is expected to continue to be strong, with refining increasing gradually during the next three to four years.

Key Trends and Issues

A number of top level trends are expected to affect pump demand in this industry over the forecast period, including the following positive trends: