Deep-water production driving demand for oil field services in the Americas, trend likely to follow into 2020
LONDON – Technavio research analysts are forecasting positive growth for many segments of the global oil and gas market over the next four years as markets including biodiesel, syngas, and oilfield services enjoy an increase in revenues.
The global syngas market is expected to grow significantly and post a compound annual growth rate of over 14 per cent during 2016-2020 due to the growing demand for industrial chemicals, fuels, agriculture products, and electricity from across the globe.
Growing environmental concerns and increasing initiatives by governments to reduce emissions has also contributed to the growth of this market.
In terms of geography, the Asia-Pacific region will account for the largest share of the market by 2020, according to Technavio.
Due to economic sourcing and reduced manufacturing costs, the vendors in this region have achieved a low-cost advantage, which allows vendors to increase the number of installations, which in turn results in this region’s market share of more than 75 per cent by 2020.
“The global syngas market is further classified into four major end-user segments, including chemicals, liquid fuel, power, and gaseous fuel. Of these four segments, the chemicals segment is expected to lead the market through 2020 by contributing more than half of the overall market share,” says Sayani Roy, a lead analyst at Technavio for research on energy.
Apart from syngas market, Technavio also labels the global biodiesel market as another fast-growing segment in the oil and gas market.
The global biodiesel market is predicted to post a CAGR of about 10 per cent during the period 2015-2019.
The fluctuating oil prices and the unstable economic conditions in several developing and developed countries have amplified the interest in biofuels over the last decade.
The high dependence on non-renewable fuels has created environmental concerns like the rising greenhouse gas levels.
According to the US EPA, biodiesel produces nearly 80 per cent lesser greenhouse gas emissions than conventional fuels, into the atmosphere and reduces hydrocarbon emissions by more than 60 per cent.
These benefits over conventional diesel are driving demand and making biodiesel into a mainstream fuel across the globe, says Technavio.
Another trending segment is the global oilfield services market which is projected to grow at a CAGR of about 5 per cent.
The increased consumption of oil and natural gas by various end-users such as transportation, industries, and power plants is creating high demand for energy.
To meet this demand, governments and vendors are investing in exploration and production activities for increasing the production of oil and gas.
Deep-water production is driving the oil field services market in the Americas, and this trend is likely to follow into 2020.