Escalating investments in the exploration and production of conventional oil and gas is propelling the adoption of pumps around the world, according to new research from Frost & Sullivan. The Western hemisphere will lead the way in uptake as production surges owing to the shale oil and gas boom in North America, oil sands in Canada, and conventional reserves in Brazil, Venezuela and Mexico. New deep-water and ultra-deep-water reserves in Asia-Pacific will contribute further towards oil and gas production, and in turn, the sale of pumps.
The report Global Pumps Market in the Oil and Gas Industry shows the market earned revenues of about $10 billion in 2013 and estimates this to reach more than $14 billion in 2020. The study covers centrifugal and positive displacement (PD) pumps.
“Increasing awareness on the economical and functional advantages of PD pumps is prompting customers to slowly but steadily shift away from centrifugal pumps,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Sakthi Sobana Pandian. “PD pumps will prove indispensable in various applications such as hydraulic fracturing, the mixing and injecting of chemicals, and the mixing of solid proppants with water.”
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The need for water and wastewater management during the extraction of gas and oil from shale has added to the demand for pumps. However, as environmental concerns threaten market growth, efficient pumps are gaining importance.
In North America and Europe, refinery closures affect pumps sales, yet opportunities have opened up for pump manufacturers in the Middle East and Asia-Pacific. Rising midstream investments in pipelines, railcars and trucks in these regions add to market potential.
“The aftermarket sales and services segment will evolve into another gold mine in terms of revenue generation as need for replacements and retrofits rises,” Pandian said. “Offering integrated solutions, services and asset-management technology will also quicken development in the global pumps market.”
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