Seventy-One OEM/EPC Contractors Spend More Than $9 Billion for Valves
A small number of companies purchase a large percentage of industrial valves.
The McIlvaine Company in
Industrial Valves: World Market
identifies these companies and provides estimates of their yearly valve
purchases.
The largest OEMS and EPCs account for more than 15 percent of the valve
purchases. Of this total 4 percent is sold to the largest end users and 11
percent to smaller end users. The largest end users and OEM/EPCs combine
for 34 percent of the total valve purchases. When additional purchase
influenced by the top 20 design firms are included the total is 40 percent of
all purchases.
Seventy-one OEM/EPCs spend $8690 million for valves for an average of $122
million each. Eight OEM/EPC companies supplying refinery systems account for
valve purchases of $2.3 billion.
The largest oil and gas contractors are
1.
Bechtel (USA)
2.
Technip (France)
3.
Aker Solutions (Norway)
4.
Chiyoda Corporation (Japan)
5.
SNC-Lavalin Group (Canada)
Valve sales people who are covering the 90 largest users, the 71 largest EPCs
and OEMs and the 20 largest design firms will be assured that they are pursuing
40 percent of the entire valve market. For more information on
N028 Industrial Valves: World Market,
click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028.
This service provides detailed forecasts which allow the subscriber to determine
how much each of the major end users will spend in the coming year. It is even
possible to determine individual project potential with the 41F Utility
E-Alert:
http://home.mcilvainecompany.com/index.php/databases/28-energy/485-41fi
and the Oil, Gas, Shale, Refining E-Alert:
http://home.mcilvainecompany.com/index.php/databases/28-energy/991-71ei.
Liquid Filtration Market Will Be Slowed By Sinking Chinese Economy, Drop in Oil
Prices and New Technology
The liquid filtration and elements market will grow by 15 percent through
2019 predicts the McIlvaine Company in N006
Liquid Filtration and Media World Markets.
This forecast is predicated on oil prices of $80/barrel, a Chinese economic
growth of 7 percent and modest penetration of the market from competing
technologies. At $40/barrel oil, 2 percent economic growth in China and
greater penetration of competing technologies, the growth over the next four
years could be as low as 8 percent.
Oil prices, the Chinese economy and technology competition are three of the
biggest variables in the future forecasts. In order to understand the
impact on the total market one has to analyze each product type included in the
report.
Subject |
Market
% |
%
consumables |
Oil
impact |
China
impact |
Technology |
ABW Filter |
12 |
10 |
m |
m |
+ |
Bag Filter |
14 |
90 |
l |
m |
- |
Belt Filter Press |
10 |
40 |
l |
l |
- |
Drum & Disk |
10 |
40 |
l |
m |
- |
Filter Press |
15 |
60 |
l |
m |
- |
Granular Media Filter |
25 |
10 |
l |
m |
- |
Leaf, Tubular & Belt |
14 |
30 |
m |
m |
- |
Automatic backwash filters (ABW) represent 12 percent of the market. They
are used in oil and gas production. China is a significant purchaser.
This technology is gaining market share over cartridges (covered in a separate
McIlvaine report). This increased penetration is included in the present
forecast as indicated by the + in the table. Only 10 percent of the market is
consumables, so ABW filters are more vulnerable to economic swings than
are bag filters where 90 percent of the market is consumables.
The forecast already takes into account the lower market share for the other
technologies. McIlvaine anticipates that membranes will continue to carve out a
bigger share of the food market at the expense of leaf and disk filters. Under a
tough competition scenario, the market would be reduced even further.
Oil prices impact those product segments where the oil and gas industry is a
major purchaser. Some products e.g. belt filter presses, are sold
primarily to sewage treatment plants and are not going to be impacted by
changing oil prices.
There are many variables affecting the market. The Fukushima disaster
alone accounted for a 1 percent increase in the market for a period of two
years. The variables need to be continually evaluated. As a result,
McIlvaine is updating its forecasts on a quarterly basis.
For more information on
N006 Liquid Filtration and Media World Markets,
click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/118-n006
Utility E Alert Tracks Big Opportunities Around The World
New power plants and large retrofit initiatives at existing plants generate very
large revenues for flow control and treatment suppliers relative to water
intake, coding, boiler feedwater and wastewater treatment. These are
tracked weekly in the Utility E Alert. Managers and sales people will
benefit greatly from this Alert which is only $950/yr. Here are some of
the headlines in the issue last week:
§
Two States' Regulators oppose Patriot Coal Reorganization Plan
§
Duke Energy to pay $975K Penalty plus do Environmental Work
§
NBET signs $5 Billion Agreement on 1200 MW Coal-fired Power Project
§
Two Japanese Firms shortlisted for Matarbari, Bangladesh Coal-fired Power Plant
§
Toshiba wins EPC Contract for Harduganj Ultra-supercritical Power Project in
India
§
Petrovietnam selects GE’s High-efficiency Steam Turbines for New Coal-fired
Power Plant
§
Tanjung Jati B plans 2 x 1000 Coal-fired Power Plants as Third Phase
§
Proposed AELs for Coal-fired Power Plants in Europe Would Tighten NOx
Permit Limits
§
Siemens to supply Equipment for 775 MW Keys Energy Center in Maryland
§
Combined Cycle Power Plant under consideration by Guam Power Authority
§
AES awarded Panama’s First Natural Gas-fired Power Plant
§
DOE selects Eight Projects to receive funding for reducing Cost of CO2
Capture and Compression
The alert has important water related information on projects. For
example:
Toshiba wins EPC Contract for Harduganj Ultra-supercritical Power Project in
India
Toshiba Corp.
announced that its Chennai, India unit Toshiba JSW Power Systems Private
Ltd. has been awarded a full EPC contract by Uttar Pradesh Rajya
Vidyut Utpadan Nigam Ltd or UPRVUNL in Lucknow, India. The value of the
contract is about $540 million. Toshiba JSW will carry out the engineering,
procurement, construction or EPC of the entire thermal power plant, including
civil and boiler island package to be completed within 48 months from the
contract award. Toshiba JSW will start delivering main equipment from October
2017, and the plant is expected to start its operation in September, 2019.
§
Water requirement for the proposed expansion will be 2,440 m3/hr. (24
cusec) with ash water re-circulation system.
§
Monitoring of surface water quantity and quality shall also be regularly
conducted and records shall be maintained. The monitored data shall be submitted
to the Ministry regularly.
§
Wastewater generated from the plant shall be treated before recycling/re-use to
comply with the limits prescribed by the SPCB/CPCB.
§
Flyash shall be collected in dry form and storage facilities (silos) shall be
provided. Unutilized flyash shall be disposed of in the ash pond in the form of
slurry. Mercury and other heavy metals (As, Hg, Cr, Pb, etc.) will be monitored
in the bottom ash and also in the effluents emanating from the existing ash
pond. No ash shall be disposed of in low lying area. Flyash shall be transported
by road through closed trucks only.
§
The ash pond shall be lined with HDPE/LDPE lining or any other suitable
impermeable media such that no leachate takes place at any point in time.
§
Space for FGD shall be provided for future installation as may be required.
For more information on the Utility E Alert, click on:
41F
Utility E-Alert
“Power Plant Water Monitoring” is the Hot Topic Hour on September 24, 2015 at
10:00 a.m. CST
A webinar on September 24 at 10:00 a.m. central time will cover the options and
issues regarding selection of fossil-fired plant water monitoring systems and
instruments. There is a very ambitious goal to provide a website with the
most comprehensive information on power plant monitors. This is part of a
whole knowledge system to provide Alerts, Answers, Analysis and Advancement in
every aspect of power. Owners and operators around the world have free
access to
44I Power
Plant Air Quality Decisions (Power
Plant Decisions Orchard) and
59D Gas
Turbine and Combined Cycle Decisions.
The Power Plant Water Monitoring Decision Guide is one of the subsidiary
websites in both these knowledge systems.
This webinar will be focused on creating a Power Plant Water Monitoring Route
Map and Summary which will help decision makers navigate the website. The first
inputs to this Route Map are displayed at Power
Plant Water Monitoring Route Map.
There is still time for vendors to submit one or two slides for the display
deck. We intend to discuss issues during the session but due to the 90 minute
limit most of the time will be just spent on determining which types of
monitors are best suited for specific applications.
The website already exists with presentations, articles and recordings. This
discussion will be followed by a continuing flow of additions to the system.
This webinar is free of charge. For more information on supplying data or
participating contact Bob McIlvaine at
rmcilvaine@mcilvainecompany.com.
Pump Market Forecast Changes Webinar - September 25, 2015
This 40 minute webinar will review changes to the forecasts in Pumps: World
Market. Explanations will be given for key factor selections such as
oil prices and Chinese economic growth. Examples of the type of information to
be presented are shown below
The pump industry will grow by 17 percent from 2015 to 2019 at oil prices of
$80/barrel during the period. At $40/barrel, the growth will only be 3
percent.
There are a number of variables which will determine the market growth for
pumps. New insights are continually generated which justify changes in the
forecasts. The Iran nuclear agreement is just one example. The plunging
economy in China is another. However, the most significant development recently
is the plunge in oil prices to $40/barrel.
The industrial pump market is dominated by oil and gas which represents 24
percent of the present market. However water and wastewater, power,
refining, petrochemical and other industries account for 76 percent of the
market. The impact of future oil prices on the market can be best
predicted by estimating the impact on the individual segments.
Oil and gas can be divided into two segments. The aftermarket and routine
purchases for small projects represent two-thirds of the total or 16 percent of
the present total pump market. The longer term large project revenues
represent only 8 percent of the current market. If the price of oil were
to continue to remain at $40/barrel through 2019, revenues in this segment would
shrink over the period.
At $40/barrel oil the long range pump product revenue from the oil and gas large
project segment would shrink by 75 percent from 8 percent of the current market
in 2015 to an amount in 2019 which is equivalent to 2 percent of the 2015
market. On the other hand, the oil and gas aftermarket and market for
small projects would remain flat during the four year period. In fact, the
market for pumps for pipelines will be positively impacted as low cost oil and
gas needs to be moved to more places.
The petrochemical market will grow faster at $40 oil. Municipal water and
wastewater will be unaffected by the fluctuation in oil prices. Lower
prices will result in more gasoline being consumed and more oil being refined.
The power market will be impacted by greater use of gas turbine combined cycle
power plants but total revenues for pumps in the power market will not be
impacted greatly by fluctuating oil prices.
McIlvaine will continue to assess the likely changes in oil prices based on the
following factors:
·
The break-even cost for a new well
o
Hydraulic fracturing break-even point is $30 to $50/barrel equivalent based on
improved management practices and the extraction of more product from existing
wells.
o
Oil and tar sands projects break even at $65/barrel.
o
Subsea is more expensive.
·
New technology developments
o
Bechtel experience with coal seam gas to LNG in Australia indicates lower break-
even costs than subsea extraction.
o
China coal to syngas and chemicals could be an alternative which is more than
competitive at $40 oil. McIlvaine has recommended marrying the two stage (HCl/SO2)
scrubbing along with conventional hydrochloric acid leaching to extract rare
earths and generate byproduct revenue.
·
Demand
o
The slowdown in China could impact demand as could economic problems in Greece
and other countries.
o
Demand is a function of industrial activity. There is little equipment
needed to extract Saudi oil. On the other hand, over 2,000 companies rely
on the Alberta oil sands market for their revenues. The greater the industrial
activity the greater the oil demand.
·
Supply
o
Saudi Arabia could choose to restrict production. In many ways the
situation is analogous to the gold in Ft. Knox. You could sell it at any
price and generate positive cash flow. However it is a precious and finite
resource which is important to future generations.
o
Market driven companies will typically be reactive rather than proactive and
will only increase drilling after oil prices rise to a level to make drilling
profitable.
·
Political developments
o
Lifting the Iran embargo on oil exports.
o
Russian activities in the Ukraine and elsewhere.
o
Chinese efforts to manage the economy.
o
Uncertainties in North Korea, Greece and Venezuela.
·
Regulatory initiatives
o
Export restrictions.
o
Climate change regulations.
o
Pollution control requirements for hydraulic fracturing.
·
Traumatic events
o
Major oil spills.
o
Large meteorite impact, earthquake or major volcano eruption.
Some of these developments are more predictable than others. The low oil
prices leads to lower extraction activity which eventually leads to shortages
and higher prices. On the other hand, wars, oil spills and earthquakes
cannot be easily predicted. As a result there will be the need for
continuous changes in the forecasts to take into account the surprises.
Pumps World Markets,
click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/116-n019
McIlvaine Hot Topic Hours and Recordings
McIlvaine webinars offer the opportunity to view the latest presentations and
join discussions while sitting at your desk. Hot Topic Hours cater to the end
users as well as suppliers while the Market Updates cater to the suppliers and
investors. Since McIlvaine records and provides streaming media access to
these webinars there is a treasure trove of value only a click away. McIlvaine
webinars are free to certain McIlvaine service subscribers. There is a charge
for others. Hot Topic Hours are free to owner/operators. Sponsored
webinars provide insights to particular products and services. They are
free. Recordings can be immediately viewed from the list provided below.
DATE |
UPCOMING HOT TOPIC HOUR |
UPCOMING MARKET UPDATES |
Sept. 24, 2015 |
Power Plant Water Monitoring |
|
Sept. 25, 2015 |
Pump Market Forecast Changes |
|
October 1, 2015 |
Power Plant Water Treatment
Chemicals |
|
October 2, 2015 |
Fabric Filter Market Forecast
Changes |
|
October 22, 2015 |
Precipitator Improvements |
|
November 12, 2015 |
Dry Scrubbing |
|
December 3, 2015 |
NOx Reduction |
----------
You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com