WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
Brief Insights
The Offshore Markets and IIoT webinar on February 28 is one of a long series of
recorded webinars which include the recent Shale Gas webinar, the Refinery
webinar and one a year ago on the broader Oil and Gas Market and the Impact of
IIoT.
You can register for the offshore webinar at
Free Market Webinars
View the Shale Gas Webinar at
https://youtu.be/UxZCfMhBJ7k
View the Refinery Webinar at
https://youtu.be/N0CgrGcfMAU
View the Oil and Gas Webinar at
https://youtu.be/o7kJSXixFHs
Large Combust, Flow and Treat
Purchases by Offshore Oil and Gas Operators Will Accelerate Starting in 2019
The offshore oil and gas industry even at its low point this year will invest
over $150 billion. While total
investment has been falling the investment in IIoT and Remote O&M has been
increasing. With total investment
moderately increasing through 2022 coupled with accelerated IIoT investment,
this market will be significant for combust, flow and treat suppliers.
One reason it will be very important is that cutting edge IIoT and remote
monitoring technologies are needed due to the remote surface locations of rigs
and the difficult challenges of subsea operation.
Rystad Energy believes global offshore investments will bottom out at $155
billion in 2018, and then investments grow steadily year by year going forward.
This growth comes from high offshore activity, driven mainly by an increasing
oil price and companies' ability to cut costs to improve the profitability of
their projects. These two factors are resulting in companies actually deciding
to go through with more investments, compared to the last three years. Several
large projects demanding significant investments in the upcoming years, with Mad
Dog Phase 2, ACG, and Bonga Southwest as the most important. Another factor
explaining the investment growth is the increased share of ultra-deep-water
projects, defined as assets in waters deeper than 1,500 m.
At a country level, the picture is mixed. Both in the years before and after the
downturn, the five most important countries, in terms of offshore investments,
were the US, Norway, Brazil, Australia and the UK. These countries' offshore
investments summed up to $155 billion in peak year 2014, nearly half of the
global total. However, Rystad sees slightly different developments after the
price collapse and going forward. Norway and Brazil follow the global trend,
with investments dropping roughly 50% before recovering to about 70% of 2014
peak investments. The US and UK investments were hit a bit harder, down roughly
65%, and only managed to recover to 60% (US) and 42% (UK) of 2014 levels.
The market for guide, control and measure will grow faster than the total
offshore capital expenses.
Choke Valves in Offshore Oil and Gas
The choke valve market ranges between $250 million and $400 million per year
depending on the definition and where we are in the oil and gas cycle. A
significant portion of choke valve sales are to oil and gas companies. The
definition also has a major effect on the revenue determination. The terms
choke, control and axial are used in different ways. With some
definitions, the market is much larger than with others. Here are some ways the
term is defined:
With remote monitoring and IIoT evaluation of choke valve performance it is
important that the relevant decisive classification of applications, valve
types, and materials be clarified. This is an ongoing project. To
view the questions and present status click on:
Subsea platforms for oil and gas extraction provide a lot of advantages compared
to floating fabrication - first and foremost in terms of cost savings and
reduced environmental impact. The high-pressure pump is the heart of the Subsea
Hydraulic Power Unit, required to work non-stop 24/7 with outstanding
reliability.
Danfoss offers chemical liquid pump solutions designed according to the API 674
and 675 standards and optimized for subsea applications, operating smoothly at
depths up to 3,000 meters. The pumps for subsea applications are delivered in
Super Duplex. The compact and lightweight pump unit guarantees constant
operation for six years without service and maintenance. The only lubricant
needed is the pumped fluid that keeps the pump running subsea, cycle after
cycle.
Subsea applications are characterized by limited space and an extremely harsh
environment. In the Danfoss product portfolio you will find chemical liquid
pumps fulfilling all requirements to subsea systems. The axial piston technology
delivers powerful performance and reduces the pump size and weight to a minimum.
The use of high-grade stainless steel and carbon-reinforced PEEK from surface to
core of the pump ensures complete corrosion resistance when submerged.
To register for the February 28 webinar click on
Free Market Webinars
For information on the Guide, Control, and Measure Market click on
N031 Industrial IOT and Remote O&M
For information on the Oil and Gas Markets, Profiles, and Projects click on
N049 Oil, Gas, Shale and Refining Markets and
Projects
Impact of IIoW Empowered IIoT on the Combust, Flow and Treat Market
There is a sea change in the obtainable combust, flow and treat market.
Those companies leveraging the Industrial Internet of Wisdom (IIoW) to
empower the Industrial Internet of Things (IIoT) will generate both higher
revenues due to higher margins per unit sale but also increased market share.
An example would be condition monitoring at the dozens of BASF plants
around the world. The process
management system is built around use of Samson valves and E+H instrumentation.
At the very least Samson and E&H have expanded their market share at all the
BASF plants around the world. to
the extent that the sales include edge computer software built upon product and
process knowledge the unit sales are also increased.
Markets can be divided into four categories including the three traditional ones
and a new one created by the sea change in the business environment.
·
TAM or Total Available Market is the total market demand for a product or
service.
·
SAM or Serviceable Available Market is the segment of the TAM targeted by your
products and services which is within your geographical or asset reach.
·
SOM or Serviceable Obtainable Market is the portion of SAM that you can capture.
·
WOM or Wisdom-based obtainable market is the bigger opportunity created by a sea
change in the route to market.
Two pump companies will be substantially impacted by the sea change.
One embraces it and one does not.
|
Revenues Before and After IIoW
Empowered IIoT |
||||
|
Company |
Before
|
After- Based on SOM |
After - Impacted by WOM |
After - Total |
|
A |
$$ |
$$$ |
$ |
$$$$ |
|
B |
$$ |
$ |
(Loss of Market Share) |
$ |
In this example two pump companies had equal sales before the sea change. After
the sea change one company loses half its market while the other one doubles
revenues. The unit revenues for Company A are up 50% ($$ to SSS). This is
because the customers will buy from the company with WOM capability. Due to WOM
edge computer and controls additions the revenues per unit of sales add another
$ to the total.
The impact of IIoW will be more important than that of IIoT.
Steps to leverage IIoW can be taken immediately independent of eventual
edge computing process development.
In fact the edge computing process management product will be based on IIoW
initiatives. These initiatives
include greater knowledge of how products present and future can improve
specific processes for specific customers.
This wisdom in turn is based on interconnection of people and knowledge.
The five-step program to leverage IIoW is found at
www.mcilvainecompany.com.
Scrubber
Adsorber Knowledge System Covers Industrial Gas Purification.
Here are the headlines for the February Scrubber Adsorber newsletter which is
part of the Knowledge Network described at
2ABC Scrubber/Adsorber/Biofilter Knowledge Systems
SCRUBBER/ADSORBER
NEWSLETTER
February 2018
No. 524
Table of Contents
MARKETS
·
Detailed Forecasting of IIoT by Country and Company
in the IIoT and Remote O&M Report
IRON AND STEEL
·
ArcelorMittal Kryvyi Rih Wins All-Ukrainian
Environmental Competition
ODOR CONTROL
·
Maintenance the Key to Maintaining Performance of
Pig House Scrubbers
·
New Scrubber Planned for Washington, MO Treatment
Works
SHIP EMISSIONS
·
Yara Marine has been Granted a Patent for their
Exhaust Gas Cleaning Scrubber Technology
·
HHI Develops Scrubber Technology with Smaller
Footprint
REFINERY
·
New Scrubber Online at Utah's Largest Refinery
BIOGAS
WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
Brief Insights
The Offshore Markets and IIoT webinar on February 28 is one of a long series of
recorded webinars which include the recent Shale Gas webinar, the Refinery
webinar and one a year ago on the broader Oil and Gas Market and the Impact of
IIoT.
You can register for the offshore webinar at
Free Market Webinars
View the Shale Gas Webinar at
https://youtu.be/UxZCfMhBJ7k
View the Refinery Webinar at
https://youtu.be/N0CgrGcfMAU
View the Oil and Gas Webinar at
https://youtu.be/o7kJSXixFHs
Large Combust, Flow and Treat
Purchases by Offshore Oil and Gas Operators Will Accelerate Starting in 2019
The offshore oil and gas industry even at its low point this year will invest
over $150 billion. While total
investment has been falling the investment in IIoT and Remote O&M has been
increasing. With total investment
moderately increasing through 2022 coupled with accelerated IIoT investment,
this market will be significant for combust, flow and treat suppliers.
One reason it will be very important is that cutting edge IIoT and remote
monitoring technologies are needed due to the remote surface locations of rigs
and the difficult challenges of subsea operation.
Rystad Energy believes global offshore investments will bottom out at $155
billion in 2018, and then investments grow steadily year by year going forward.
This growth comes from high offshore activity, driven mainly by an increasing
oil price and companies' ability to cut costs to improve the profitability of
their projects. These two factors are resulting in companies actually deciding
to go through with more investments, compared to the last three years. Several
large projects demanding significant investments in the upcoming years, with Mad
Dog Phase 2, ACG, and Bonga Southwest as the most important. Another factor
explaining the investment growth is the increased share of ultra-deep-water
projects, defined as assets in waters deeper than 1,500 m.
At a country level, the picture is mixed. Both in the years before and after the
downturn, the five most important countries, in terms of offshore investments,
were the US, Norway, Brazil, Australia and the UK. These countries' offshore
investments summed up to $155 billion in peak year 2014, nearly half of the
global total. However, Rystad sees slightly different developments after the
price collapse and going forward. Norway and Brazil follow the global trend,
with investments dropping roughly 50% before recovering to about 70% of 2014
peak investments. The US and UK investments were hit a bit harder, down roughly
65%, and only managed to recover to 60% (US) and 42% (UK) of 2014 levels.
The market for guide, control and measure will grow faster than the total
offshore capital expenses.
Choke Valves in Offshore Oil and Gas
The choke valve market ranges between $250 million and $400 million per year
depending on the definition and where we are in the oil and gas cycle. A
significant portion of choke valve sales are to oil and gas companies. The
definition also has a major effect on the revenue determination. The terms
choke, control and axial are used in different ways. With some
definitions, the market is much larger than with others. Here are some ways the
term is defined:
With remote monitoring and IIoT evaluation of choke valve performance it is
important that the relevant decisive classification of applications, valve
types, and materials be clarified. This is an ongoing project. To
view the questions and present status click on:
Subsea platforms for oil and gas extraction provide a lot of advantages compared
to floating fabrication - first and foremost in terms of cost savings and
reduced environmental impact. The high-pressure pump is the heart of the Subsea
Hydraulic Power Unit, required to work non-stop 24/7 with outstanding
reliability.
Danfoss offers chemical liquid pump solutions designed according to the API 674
and 675 standards and optimized for subsea applications, operating smoothly at
depths up to 3,000 meters. The pumps for subsea applications are delivered in
Super Duplex. The compact and lightweight pump unit guarantees constant
operation for six years without service and maintenance. The only lubricant
needed is the pumped fluid that keeps the pump running subsea, cycle after
cycle.
Subsea applications are characterized by limited space and an extremely harsh
environment. In the Danfoss product portfolio you will find chemical liquid
pumps fulfilling all requirements to subsea systems. The axial piston technology
delivers powerful performance and reduces the pump size and weight to a minimum.
The use of high-grade stainless steel and carbon-reinforced PEEK from surface to
core of the pump ensures complete corrosion resistance when submerged.
To register for the February 28 webinar click on
Free Market Webinars
For information on the Guide, Control, and Measure Market click on
N031 Industrial IOT and Remote O&M
For information on the Oil and Gas Markets, Profiles, and Projects click on
N049 Oil, Gas, Shale and Refining Markets and
Projects
Impact of IIoW Empowered IIoT on the Combust, Flow and Treat Market
There is a sea change in the obtainable combust, flow and treat market.
Those companies leveraging the Industrial Internet of Wisdom (IIoW) to
empower the Industrial Internet of Things (IIoT) will generate both higher
revenues due to higher margins per unit sale but also increased market share.
An example would be condition monitoring at the dozens of BASF plants
around the world. The process
management system is built around use of Samson valves and E+H instrumentation.
At the very least Samson and E&H have expanded their market share at all the
BASF plants around the world. to
the extent that the sales include edge computer software built upon product and
process knowledge the unit sales are also increased.
Markets can be divided into four categories including the three traditional ones
and a new one created by the sea change in the business environment.
·
TAM or Total Available Market is the total market demand for a product or
service.
·
SAM or Serviceable Available Market is the segment of the TAM targeted by your
products and services which is within your geographical or asset reach.
·
SOM or Serviceable Obtainable Market is the portion of SAM that you can capture.
·
WOM or Wisdom-based obtainable market is the bigger opportunity created by a sea
change in the route to market.
Two pump companies will be substantially impacted by the sea change.
One embraces it and one does not.
|
Revenues Before and After IIoW
Empowered IIoT |
||||
|
Company |
Before
|
After- Based on SOM |
After - Impacted by WOM |
After - Total |
|
A |
$$ |
$$$ |
$ |
$$$$ |
|
B |
$$ |
$ |
(Loss of Market Share) |
$ |
In this example two pump companies had equal sales before the sea change. After
the sea change one company loses half its market while the other one doubles
revenues. The unit revenues for Company A are up 50% ($$ to SSS). This is
because the customers will buy from the company with WOM capability. Due to WOM
edge computer and controls additions the revenues per unit of sales add another
$ to the total.
The impact of IIoW will be more important than that of IIoT.
Steps to leverage IIoW can be taken immediately independent of eventual
edge computing process development.
In fact the edge computing process management product will be based on IIoW
initiatives. These initiatives
include greater knowledge of how products present and future can improve
specific processes for specific customers.
This wisdom in turn is based on interconnection of people and knowledge.
The five-step program to leverage IIoW is found at
www.mcilvainecompany.com.
Scrubber
Adsorber Knowledge System Covers Industrial Gas Purification.
Here are the headlines for the February Scrubber Adsorber newsletter which is
part of the Knowledge Network described at
2ABC Scrubber/Adsorber/Biofilter Knowledge Systems
SCRUBBER/ADSORBER
NEWSLETTER
February 2018
No. 524
Table of Contents
MARKETS
·
Detailed Forecasting of IIoT by Country and Company
in the IIoT and Remote O&M Report
IRON AND STEEL
·
ArcelorMittal Kryvyi Rih Wins All-Ukrainian
Environmental Competition
ODOR CONTROL
·
Maintenance the Key to Maintaining Performance of
Pig House Scrubbers
·
New Scrubber Planned for Washington, MO Treatment
Works
SHIP EMISSIONS
·
Yara Marine has been Granted a Patent for their
Exhaust Gas Cleaning Scrubber Technology
·
HHI Develops Scrubber Technology with Smaller
Footprint
REFINERY
·
New Scrubber Online at Utah's Largest Refinery
BIOGAS
·
California Utilities Issue Draft Solicitation for
Dairy Biomethane Pilot Projects
·
Valmet to Supply a Flue Gas Cleaning System to
Vantaan Energia's Biopower Plant in Martinlaakso
·
Valmet to Supply an Extensive Automation and Data
Collection Solution to Gasum's Biogas Plants
RESEARCH
·
PNNL Demonstrates Tiny Porous Materials Can
Economically Separate Xenon Gas out of Waste Streams
·
California Utilities Issue Draft Solicitation for
Dairy Biomethane Pilot Projects
·
Valmet to Supply a Flue Gas Cleaning System to
Vantaan Energia's Biopower Plant in Martinlaakso
·
Valmet to Supply an Extensive Automation and Data
Collection Solution to Gasum's Biogas Plants
RESEARCH
·
PNNL Demonstrates Tiny Porous Materials Can
Economically Separate Xenon Gas out of Waste Streams