U.S. Petrochemical Companies will increase IIoT and Remote O&M Purchases by 8%/yr through 2025

U.S. petrochemical producers are increasing their IIoT and Remote O&M investments per ton of product at the same time they are accelerating the construction of new plants to take advantage of the low cost feedstocks in the U.S. Just within the last few months the major oil companies have made clear their intention to invest a higher percentage of capital on U.S. shale oil and gas extraction. Chevron believes that it can extract oil at a cost as low as $15 per barrel. ExxonMobil believes it can be profitable with $30/bbl oil. Both companies are expecting the U.S. liquids production to be 25 million bl/d by 2025. This compares to IEA and OPEC forecasts for the U.S. production at just half this amount.

The impact on the petrochemical industry will be substantial. The availability of cheap and abundant feedstocks such as ethane make the U.S. Shale Crescent in the East and the Permian basin in the Southwest ideal locations for new production facilities. The U.S. Congress just received a report from the Secretary of Energy which predicts that the Eastern U.S. will become a petrochemical and plastics manufacturing hub. A detailed analysis by the McIlvaine Company built on specific projects and plans concludes that the U.S. petrochemical IIoT and remote O&M market will grow by 8%/yr vs 6.5%/yr for the rest of the world.

 

U.S. Petrochemical Companies will increase IIoT and Remote O&M Purchases by 8%/yr through 2025