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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