Introduction to Midstream Oil and Gas Equipment
The midstream is one of the three operational stages of the entire oil and gas value chain which is responsible for processing, storage and distribution of natural gas, crude oil and petrochemicals to the costumers. It is the intermediary stage between upstream involving searching, drilling and producing the hydrocarbons at commercial level and downstream involving refining, marketing and sales of final product.
The midstream equipment involves all the resources that are utilized for processing, storage and distribution operations for instance fluid compressors, oil pipelines, fractionating and dehydration tanks, fluid compressors LPG & LNG storage plants, etc.
Market Size and Forecast
The midstream oil and gas equipment market is anticipated to expand at a CAGR of around -1.9% over the forecast period i.e. 2019-2027 owing to oil price recovery and increasing natural gas consumption. Additionally, the removal of restrictions on LNG exports resulted in the improvement in oil and gas sector that further increased the demand for new construction units. These factors are estimated to significantly support the growth of the market over the forecast period.
The midstream oil and gas market is segmented by resource, application and equipment type. The resource type segment is further segmented into gas treating and processing equipment, instrumentation equipment, pipe, pumps, rail tank cars, storage tanks, and valves, out of which, the pipe segment is anticipated to have highest market share on the back of their increased usage in processed gas and crude oil transportation system. DOWNLOAD FREE SAMPLE REPORT
Increasing requirement for equipment on account of an escalating demand of gas production in both developed and developing countries coupled with growing demand for transportation fuels is driving the growth of the market. Additionally, new government initiatives and investments in oil and gas sector has resulted in creating numerous opportunities, thereby surging the demand for midstream oil and gas equipment. The increased rig activity levels and major projects are under approval, for instance, BP is moving ahead with its Mad Dog, a floating platform in the Gulf of Mexico. Shell is investing in Penguins field redevelopment and has reached in its final decision making stage, which is its first operated installation in northern North Sea.
Rise and advancement in upstream sector along with growing number of such projects is anticipated to propel the demand for midstream equipment.
High operational cost is one of the prevalent factors that are estimated to hamper the growth of midstream oil and gas equipment market. The decline in the commodity prices has significantly resulted in cash flow crunch restricting the investment in the midstream equipment coupled with the high feedstock prices which altogether has pulled down the margins for market growth.
Our-in depth analysis of the midstream oil and gas equipment market includes the following segments:
On the basis of regional analysis, the midstream oil and gas equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia-Pacific is anticipated to occupy significant market share in upcoming years, especially in China and India on the back of growing environmental concerns and increased energy consumption. The innovations in oil and gas market to provide an economical way to transport hydrocarbons are anticipated to fuel the market growth in the region. The market in North America is estimated to witness robust growth owing to the presence of highest number of refineries in the United States with many export services. Additionally, the region has large oil & gas reserves which generate opportunities for processing in the field areas which is further expected to support the growth of the market in upcoming years.
The midstream oil and gas equipment market is further classified on the basis of region as follows:
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