U.S. Petrochemical Industry is a Most Profitable Market (MPM) Opportunity for CFT Providers

The petrochemical industry segment of the Combust, Flow, and Treat (CFT) market will grow faster than the average segment. Suppliers with a strong U.S. presence can take advantage of a market growing at close to 9 percent per year. The rapid growth, potential for innovation, market access and the emphasis on better rather than low priced components make this a Most Profitable Market (MPM) opportunity.

The U.S. will gain market share over the next six years due primarily to the cheap supplies of feedstocks. 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 of just $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 CFT market will grow by 9%/yr vs 6.5%/yr for the rest of the world.

U.S. Petrochemical Industry is a Most Profitable Market (MPM) Opportunity for CFT Providers