Oil, gas industry powers sales for medium voltage motor drives market

Medium voltage drives sales into the oil and gas industry will outplace the market in 2011, according to a new study from IMS Research.

11/15/2011


IMS ResearchMedium voltage (MV) drives sales into the oil and gas industry will outpace the market in 2011 due primarily to the high oil prices in 2010 and early 2011, increasing investment for production capacity expansion, according to a new study, “The World Market for Medium Voltage Motor Drives”, from IMS Research.

In the past, oil companies reported significant profits when oil prices rose above $50 per barrel. IMS Research believes the threshold has changed to be closer to $80-$100 per barrel due to more cautious investment behavior for large capital expenditures following the downturn. In 2010, the price of oil was between $75 and $85 per barrel, which led to re-investment in the oil and gas industry. Even stronger, the first half of 2011, oil prices were between $85 to $110 per barrel providing a significant catalyst for the medium voltage drives market. Due to the profits seen from expanding production capacity at higher oil prices, medium voltage motor drives sold into the oil and gas industry are estimated to grow by over 20% worldwide in 2011.

Analyst Jenalea Howell states, “Sales of medium voltage motor drives into the oil and gas segment is predicted to continue increasing, as orders of medium drives in the oil and gas industry during the second half of 2011 remain strong, only increasing current backlogs and growth for 2012. However, growth will continue to slow due to the difficulties of sustaining such high growth, and more importantly high oil prices. ”

In addition, liquid natural gas (LNG) investment as well as oil and gas exploration and extraction in developing countries such as Brazil, Russia, and China will contribute to the continued growth into 2015. Overall, the oil and gas industry for the MV drives market is forecast to grow by a 17.1% average annual growth rate in terms of revenues from 2010 to 2015.

www.IMSResearch.com

IMS Research


Edited by Amanda McLeman for Plant Engineering.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
System integration: Best practices and technologies to help; Virtualization virtues; Cyber security advice; Motor system efficiency, savings; Product exclusives; Road to Hannover
Collaborative robotics: How to improve safety, return on investment; Industrial Internet of Things, Industrie 4.0: World views; High-performance HMI, Information Integration: OPC and OMG
9 tips: How to integrate a servo system; Process control mathematical models; Serial network grounding; Engineers' Choice Awards; Learn from cyber security mistakes
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
click me