Unconventional Oil and Gas Will Cause Valve Sales to Be $3 Billion Higher In 2015
The sale of industrial valves in 2015 will increase to $69 billion worldwide. Much of the growth will be attributable to unconventional oil and gas.
Category $ Billions % Difference Explanation
Valve sales 2014 w/o inflation 57 Based on 2010 dollars
Valve sales 2014 actual revenues 63 10.5 2014 actual revenues reflecting year over year inflation
Valve sales 2015 with inflation and conventional oil and gas assuming no unconventional 66 4.7 Increase over 2014 assuming the same amount of oil and gas was extracted but by conventional methods. Real growth would have only been 0.7% and inflation 4%
Valve sales in 2015 with the original share for unconventional oil and gas 67 7 Reflects 3% real growth and 4% inflation
Valve sales 2015 with inflation and non conventional oil and gas (new projection) 69 9.5 Increase over 2014 with 5.5% real growth and 4% inflation


McIlvaine displays hundreds of thousands of revenue forecasts in Industrial Valves: World Market. All of these figures are displayed in 2010 dollars so that viewers can determine the real industry growth without regard to inflation. The 2014 forecast is for valve revenues of $57 billion. When this is adjusted for inflation, sales will be $63 billion in actual dollars. Until recently, McIlvaine had forecast 2015 sales of $67 billion of which $1 billion was due to unconventional oil and gas. However, the forecast is being revised to reflect a 9.5 percent increase and valve sales of $69 billion. This is due to the extensive investment in unconventional oil and gas. Therefore, unconventional oil and gas will generate revenues of $3 billion in 2015.
One of the main drivers in the revision of the numbers is the huge coal-to-gas and chemicals program underway in China. This program is already generating larger process equipment plant investments than the shale gas activities in the U.S. By 2025, with 40 projects in the planning stage, the Chinese coal-to-gas production could reach a level of 40 percent of the entire present U.S. consumption. The goal is to transport this gas by pipeline from the West and North to the large cities in the East. This is one of the most important initiatives for reducing air pollution in the large cities. The clean burning gas will replace coal. Also the investment in U.S. petrochemical plants which will be using gas as a feedstock will be outstripped by the Chinese investment in coal to petrochemicals. Another massive program is coal-to-liquid fuels. High quality motor fuels can be produced from coal using both indirect and direct liquefaction. China is making massive investments in both technologies.
For more information on Industrial Valves: World Market, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028.
UTILITY E-ALERT
Headlines for June 20, 2014 – Utility E-Alert
#1180 – June 20, 2014

Table of Contents
COAL – US

• New Coal Ash Bill introduced in North Carolina
• Nebraska City Unit 1 to be scrubbed

COAL – WORLD

• Yokogawa to supply Control Systems for Lara Supercritical Power Plant in India
• Foster Wheeler Subsidiary awarded SCR Contract for SCR System by Turun Seudun Energiantuotanto Oy in Finland
• Siemens secures €208 Million Order to supply Turbine Island for Jaworzno III Steam Power Plant in Jaworzno, Poland

GAS/OIL – US

• CB&I will design and build a Combined Cycle Natural Gas-fired Power Plant in Indiana
• Black & Veatch to build 495 MW Combined Cycle Project in Oklahoma
• PNM to build a $56 Million Natural Gas-fired Power Plant in New Mexico
• Rolling Hills Generating seeks Permits for Ohio Power Plant Project Upgrade

GAS/OIL – WORLD

• GE supplies Four Gas Turbines to Jacobsen Electro for New Facility in Kinyerezi, Daar es salaam, Tanzania
• Initial Tender announced for Oman’s 2,600 MW Gas-fired Power Project
• Federal Government (Nigeria) and U.S. Investors sign MoU to construct Gas-fired Power Plant
• The Partnership Fund starts installation of Gas Turbines at Combined Cycle Power Plant in Gardabani, Georgia

NUCLEAR

• Deal signed yesterday by China's Premier Li Keqiang on visit to Britain to design and run Nuclear Power Plants
• Babcock & Wilcox Nuclear Energy awarded Multi-year Fleet Services Contract from Dominion Generation
• AMEC wins Consultancy Contract for UAE Nuclear Energy Program

BUSINESS

• Coal Gasification could completely change Asian Energy Outlook
• $24 Billion will be spent on NOx Control Systems and Consumables This Year
• GSE Environmental files for Chapter 11 Bankruptcy Protection for North American Operations
• Partnership provides Combustion Optimization Products
• Exelon & Pepco file Merger requests with State and DC Regulators
• Sime Darby sells Power Plants to B. Grimm Power in Chonburi province, Thailand
• POSCO Energy acquires Tongyang Power (South Korea) for $431 Billion

HOT TOPIC HOUR

• Coal Combustion Residue Hot Topic next Thursday expanded to cover Chinese Coal-to-Gas and Coal-to-Chemical
• Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
McIlvaine Hot Topic Hour Registration
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See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE SUBJECT
June 26, 2014 CCR and Effluents Decisions
July
10 Direct Sorbent Injection
17 Gas Turbine Emission Control
24 Wet Calcium FGD
31 Mercury Sorbent Options
August
7 MATS Timing and Technology Options
14 Industrial Boiler and Cement MACT Timing and Compliance Options
21 MEGA Symposium
28 Demineralization and Degasification
September
4 Hot Gas Filtration
11 Power Plant Pumps
18 Power Water Monitoring
25 Power Plant Water Treatment Chemicals

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