GLOBAL TRENDS ANALYSIS FOR 2017
DAVID FAHLE, SERVOMEX ' S HYDROCARBON PROCESSING MARKET SECTOR MANAGER PREDICTS HP MARKET DEVELOPMENTS AND OPPORTUNITIES IN 2017
With energy prices beginning to rise again, we can expect to see increased confidence in the hydrocarbon processing( HP) market in the year ahead.
After many projects were delayed or slowed by the recent market uncertainties, the schedules for many of these are now accelerating, and global and regional operators are now investing in new projects.
Markets in Europe and China particularly are showing signs of recovery; margins are improving in Europe, the Middle East and Southeast Asia; and consumer demand is on the rise in many regions. This all adds up to a more optimistic outlook for the sector than we perhaps had at the beginning of 2016. So, over 2017, we will be increasing support to our sales teams around the world to meet increased demand, so they can respond to customers more quickly and effectively.
Certainly, we expect the US to thrive, with the resurgence of shale gas production fueling exports, a wave of new projects, and improved trading conditions. The incoming US administration seems committed to internal infrastructure investment, and this may also have a positive impact on demand.
Elsewhere in the Americas, Mexico should be an improving market as it opens the petroleum industry up to outside investment. Brazil, however, is showing only modest domestic growth; minor OPEC partners, such as Venezuela, could struggle.
In the Middle East, we expect Saudi Arabia to lead the way, with a high level of momentum in its export market. We have noted growing demand for our reliable combustion analysis solutions, in particular to solve problems in applications that use high sulfur fuels.
In China there is an accelerating emphasis on improving process efficiency and controlling environmental emissions. The situation is not dissimilar for India: we expect domestic demand to slow, but there is also rising demand for Continuous Emissions Monitoring( CEM) solutions in response to growing compliance requirements and domestic pressures.
Even under the tougher conditions of last year, 2016 saw Servomex win some major contracts in the HP sector, and we expect that success to continue. Our core solutions continue to bring considerable process and safety optimization advantages in a wide range of downstream chemical applications, including production of ethylene, ethylene oxide, vinyl chloride monomer and polyvinyl chloride.
We will further consolidate our position as the leading expert in combustion gas analysis, with customers now able to choose from the flexible range of combustion measurements available in the new SERVOTOUGH Laser 3 Plus TDL range, as well as the trusted combustibles measurement provided by the SERVOTOUGH FluegasExact 2700.
Alongside the growing demand for CEMs outlined earlier, growing compliance requirements around flare gas emissions are driving a more urgent requirement for effective monitoring solutions – a challenge met by the powerful, fast inline hydrocarbon analysis provided by a combination of the SERVOTOUGH SpectraScan 2400 and H2Scan analyzers( see pages 8 & 9).
Plant safety is as important as ever. The process-critical safety measurements provided by analyzers like the SERVOTOUGH Oxy 1900 and OxyExact are now mirrored by the stable oxygen measurements of the SERVOTOUGH OxyDetect, our safe, non-depleting replacement for inferior electrochemical-based gas monitors used for life safety monitoring.
Shale gas production accounted for half of the US natural gas production in 2015 and is expected to double by 2040.
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