WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
U.S. Based Companies will make Twenty-five Percent of the Valve Purchasing
Decisions in the New IIoT Environment
The infiltration of IIoT and remote O&M into the valve industry will profoundly
impact the purchasing approach of plant owners. The 550 largest valve operators
are increasingly making decisions for all their plants at the corporate offices.
Traditional business strategy has started with forecasts of valve purchases by
geographic region. This was logical because most valve decisions were made
at the plant level. In the new environment decisions will be made at a
central location which has access to valve performance data at all the plants.
As a consequence, valve company sales efforts will need to be aligned with the
corporate office locations.
The U.S. has lost importance as the dominant operator of processes utilizing
valves. The large U.S. operators have been making most of their recent
investments in countries where demand is increasing. These companies have
become increasingly international. Now with remote monitoring and data
analytics these companies can make better informed valve decisions for each
plant from the corporate office.
This is good news for the valve salesmen assigned to the U.S. The reason is that
25 percent of the 550 largest valve purchasers are based in the U.S.
On the average their purchases are larger than operators based in other
countries. So, the role of the U.S. sales force will become increasingly
important.
Valve Purchases 2018 $
millions
by U.S. based Companies |
|||
Company |
Role |
Industry |
Purchases |
AbbVie |
Operator |
Pharma |
36 |
ADM |
Operator |
Food |
15 |
AECOM |
EPC |
Total |
175 |
AEP |
Operator |
Power |
93 |
Amgen |
Operator |
Pharma |
32 |
The rapid development of IIoT is being analyzed in
N031
Industrial IOT and Remote O&M
The forecasts for the 550 purchasers are included in
N028
Industrial Valves: World Market
The five-step program to navigate the IIoT sea change is discussed.
Refinery Webinar and Decisions System
McIlvaine conducted a webinar on the market for combust, flow, and treat
equipment and services in refineries last week.
A small number of companies make the decisions relative to combust, flow and
treat purchases for refineries. The refinery IIoT and Remote O&M market will
rise from $18 billion in 2018 to more than $36 billion by 2024.
Companies building new refineries are well aware of the benefits of using IIoT
through pervasive sensing applications. A typical modern facility will
thus have about 50,000 inputs and outputs to and from control and monitoring
systems, with all connections made through plant intranets, which replaces the
Internet in these IIoT applications. But an older refinery will typically have
closer to 20,000 inputs and outputs, with the 30,000 shortfall the root cause of
much inefficiency, operational issues and safety incidents. So, the IIoT
potential at existing plants is bigger than for new plants.
McIlvaine tracks all refinery projects daily. There are relatively few refining
companies. Many of them also own chemical plants and or extract gas and oil.
A marketing program for refining combust, flow, and treat products and services
was discussed.
Recorded 41 Minute webinar on January 10, 2018
View YouTube Recording: https://youtu.be/N0CgrGcfMAU
The webinar also covered the markets of individual components by the major
purchasers using the following sample.
Refinery Purchases 2018 - $ millions |
||||||
|
Total |
lukoil |
Aramco |
SK |
Repsol |
Exxon |
% |
|
1.27 |
2.53 |
0.85 |
1.15 |
5.87 |
Pumps |
3200 |
41 |
81 |
27 |
37 |
188 |
Valves |
8485 |
108 |
215 |
72 |
98 |
498 |
Treatment Chemicals |
3100 |
39 |
78 |
26 |
36 |
182 |
Filtration/ Separation |
5400 |
69 |
137 |
46 |
62 |
317 |
Sub Total
|
20185 |
257 |
511 |
171 |
233 |
1185 |
Guide |
5877 |
75 |
149 |
50 |
68 |
345 |
Control |
12,400 |
157 |
314 |
105 |
143 |
728 |
Measure |
5600 |
71 |
142 |
48 |
64 |
329 |
Sub Total
|
23877 |
303 |
605 |
203 |
275 |
1402 |
Total |
44,062 |
560 |
1116 |
374 |
508 |
2587 |
A refinery Decisions System can now be accessed free of charge for the next
three months. One decision guide will cover air pollution control for
catalytic cracking and consider new technologies such as catalytic filters for
recovery of more catalyst fines and NOx removal. Fence line monitoring and the
new requirements for benzene monitoring nationally and 15 pollutants in
California is another subject.
You can contact Bob McIlvaine rmcilvaine@mcilvainecompany,com to sign up for the
three month free access.
Shale Oil and Gas Webinar on February 7 will cover IIoT and Combust, Flow and
Treat Markets
Unlike conventional extraction shale oil and gas involves large numbers of small
wells with very complex extraction processes. This combination makes IIoT
and Remote O&M very cost effective. There are also many more combust, flow and
treat products and services required. McIlvaine tracks all the oil and gas
activity on a daily basis. N049
Oil, Gas, Shale and Refining Markets and Projects Remote
monitoring of pumps and valves is very important due to the high pressures and
abrasive environment in which these components must operate. The cost of shale
and gas extraction has been falling due to process and component innovation.
Greater use of IIoT and Remote O&M will make this technology even more
competitive. This webinar will provide an extension of the March oil and
gas webinar which can be viewed at https://youtu.be/o7kJSXixFHs
The total oil market is growing. OPEC now sees demand reaching 102.3 million
barrels a day in 2022, up from 95.4 million barrels a day in 2016.
The United States will meet much of the demand increasing its oil output by 3.8
million barrels a day through 2022, OPEC says. That will be equal to about 75
percent of all supply growth outside the 14-member OPEC, which provides about
one-third of the world's crude. Much of that growth will come from U.S. shale.
U.S. shale oil production could exceed 9 million barrels per day by 2025.
Capex is likely to grow at 25%/yr. The U.S. shale oil market is in
recovery. WTI has rebounded from its February 2016 low of $30/bbl, and reached
$70/barrel last week.
Those prices have driven shale oil rig counts to over 500 rigs-more than 2.5
times the April 2016 bottom of 193. Several factors enable operators to continue
producing in this lower-price environment:
1. high-grading, since ~50% of sub-basins have
uneconomic average break evens at these prices;
2. a 5-day reduction in average drilling days
since 2014; and,
3. an average Initial production (IP) improvement
of 33% since 2014.
To register for the webinar click on
Free Market Webinars
Pump Report Continually Updated
Subscribers to the McIlvaine pump report just received forecasts for the pump
expenditures for the top 550 purchasers. In addition to updates to the
networking directory and forecasts there is a monthly news update.
Here are the headlines for the December issue
Pumps World Markets Update - Table of Contents - December 2017
Maag Opens Two New Plants in
China
Grundfos Opens New Manufacturing
Plant in India
Gruppo Aturio Adds Testing
Facilities
Clyde Union Reduced Work Force
in UK after Losses
Xylem UK Managing Director
Appointed New President of BPMA
SPX Flow Announces New Sales
Manager for Johnson Marine in Americas
Hazelton Pump Used in South
Africa Midstream Facility
Tsurumi Skimmer Pumps Supplied
to Paris Metro
New Watson Marlow Pump at
Minnesota Water Treatment Plant
Amarinth Pumps Delivers Vertical
Pumps to Abu Dhabi Wastewater Plant
Watson Marlow Bredel Pumps
Installed in Brazilian Copper Mines
Weir Completes Valve and Pumps
Restoration in Coal to Biomass Conversion
Alfa Laval Wins Framo Pumping
Order for North Sea Oil Platform
KSB Pumps to Be Installed in
Egyptian Power Plants
Ebara Delivers Pumps to
Vietnamese Filtration Plant
HMS Group Supplying Pumping
Units for Indian Nuclear Power Plant
EnviroGear Extends E Series
Internal Gear Pumps with 4 and 6 Inch Pumps
Selwood Introduces New
Environmentally Friendly Solids Handling Pump
GEA Rolls Out Super Slider Pump
for Manure
Xylem Goulds Introduces New
Vortex Pump
Kamat Builds New Quintuplex Pump
For more information on the pump report click on
N019 Pumps
World Market