Thousands of Projects Worth Hundreds of $ Billions in Booming Oil and Gas Industry
Depending on the definition, the number of opportunities in the oil and gas sector ranges from a few thousand to over one million. At the top end there are single projects where the investment will exceed $10 billion. This is the conclusion reached in Oil, Gas, Shale and Refining Markets and Projects published by the McIlvaine Company. (www.mcilvainecompany.com)
Segment Number
Operating gas and oil wells 1,000,000
Well completions in 2012 105,000
Rigs in operation 3,500
LNG trains in operation 100
Current LNG projects 20
Current operating large gas-to-liquids plants 10
Large gas-to-liquids projects 10
Smaller gas-to-liquids projects 100
Liquid separation from natural gas projects 200
Coal to chemical new projects 50
Refineries in operation 700
New refineries in planning and construction 40
Refinery upgrades and environmental projects 1,000
Tar sands expansion and new projects 15
Existing gas and oil wells need pumps, valves, compressors, instrumentation and control equipment. Accuracy is needed due to the custody transfer and value of the products. Despite the large number of existing wells, the major capital investment is in a relatively small number of large projects.

Figure 1: Comparative Investment Value (Overnight Cost) for major Industrial Plants
Some of the investments in the oil gas industry are even larger than the investment in a new supercritical coal-fired power plant. The gas-to-liquids plant now underway in Louisiana will cost Sasol more than $10 billion. New refineries, LNG and tars sands plants are all multibillion dollar expenditures. Much of this is for liquid and gas flow and treatment equipment. In addition, the tar sands plants have big investments in material handling.
With the shale gas and liquids boom there are many projects to separate liquids from gas. Conversion of coal to chemicals is attracting billions of dollars of investment. China is the leader with both direct and indirect gasification processes.
McIlvaine tracks the projects and provides market forecasts in Oil, Gas, Shale and Refining Markets and Projects. For more information on Oil, Gas, Shale and Refining Markets and Projects, click on: http://home.mcilvainecompany.com/index.php/component/content/article?id=72#n049
Marine Market for Flow Control and Treatment is Growing at Double-Digit Rates
Marine vessels are purchasing air and liquid flow control and treatment equipment at an accelerating rate due to new limits on both emissions to the atmosphere and to the water. This is the conclusion reached in the McIlvaine report Air/Gas/Water/Fluid Treatment and Control: World Markets. (www.mcilvainecompany.com)
The U.S. EPA set standards for ballast water discharge in March of 2013. The compliance date is 2016. This rule is just one of a number passed by various different governmental bodies around the world. These rules will impact nearly 70,000 ships which use international ports. The average cost of treatment systems to kill invasive organisms will range from as little as $300,000 to more than $3 million.
A number of companies are generating substantial revenues already in this market. Alfa Laval just announced a $50 million SEK order from a Korean ship builder. Severn Trent has now sold 18 systems. Calgon Carbon has emerged as a major participant in this market. More than 50 companies are selling treatment systems.
This market is now the largest for the self-cleaning or automatic backwash type filters which use disks or screens to achieve particle reduction to 50 microns. Calgon Carbon has signed a long-term agreement with Amiad to supply them with the Arkal type disc filters. These self-cleaning filters are used in irrigation, municipal water treatment and even the purification of chocolate.
Another fast growing segment is the treatment of the stack gases from fuel burning. Wartsila and others are selling scrubber systems which remove both particulate and SO2. NOx control systems are also being purchased for some vessels.
Cruise ships are opting for advanced treatment of sewage. Several membrane bio reactor (MBR) suppliers such as GE and Hamworthy (Wartsila) have been selling systems for ships since 2002. The market includes new ships but also retrofits. Hamworthy replaced an older sewage treatment system with an MBR on the Star Princess.
Pumps and valves are integral to the ballast water and sewage treatment. They are also needed for the stack gas scrubbing systems, engine lubrication and for cargo transport on tankers. A fast growing segment for pumps and valves is the Floating Production, Storage and Offloading (FPSO) vessels. Two hundred vessels are already in use for sub-sea oil and gas extraction. The movement of the industry to deeper waters has accelerated the demand for a floating unit rather than one anchored to the seabed.
The market growth for controls and instrumentation for these processes is growing even faster than the hardware. There is a move toward smart valves. Metso has supplied its latest generation stainless steel valve controllers to the Norwegian Goliat Floating Production Storage and Offloading (FPSO) plant in the Barents Sea. The intelligent controllers are used on all pneumatic actuated control, on/off and ESD valves at the plant and help to monitor and report on valve performance for asset management purposes.
Suppliers are providing advanced control systems for all the flow processes. For the BP Angola FPSO, Yokogawa supplied an integrated control and safety system (ICSS). The ICSS provided control and safety functions for the sub-sea, marine, hull and topside facilities of the FPSO vessel along with a single interface allowing operators to start, control and monitor all facilities from a central control room.
For more information on Air/Gas/Water/Fluid Treatment and Control: World Markets, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=71

Here are the Headlines for the April 12, 2013 – Utility E-Alert
UTILITY E-ALERT
#1120 – April 12, 2013
Table of Contents
COAL – US
 Indiana URC approves Duke’s Environmental Compliance Plan; includes SCR for Cayuga 1, 2
 WP&L estimates Cost of Construction of Dry FGD/Baghouse at Edgewater 5 as $413.7 Million
 Fate of Mt. Tom undecided at Present
 Calpine, Exelon, National Grid and Public Service Enterprise Group Back MATS Rule
COAL – WORLD
 PGE abandons Plans for 2x900 MW Opole in Poland
 Videocon’s 1200 MW Power Project in West Bengal, India could be revived by Talks between West Bengal and Videocon
 Bidding begins for EPC Contract for 1320 MW Udangudi Power Project in Tamil Nadu, India
 Alsons planning 400 MW Power Plant at Tampakan Copper and Gold Mine in the Philippines
 NTPC could move another Power Project from the Indian State of Odisha
 Hitachi and Terna to build 660 MW Ptolemais V in Greece
 BHEL-NTPC-IGCAR Effort to build 800 MW Advanced Ultra Supercritical Power Plant in India
 DPSC Ltd to invest Rs 25,000 Crore for Power Plants in India
 Era Infra gets Rs 430-cr Contract from NTPC for 2x800 MW Lara Power Plant in Chhattisgarh, India
 Coal India-NTPC dispute: Full Coal Supply to be resumed
 Coal Linkages to 16,000 of MW Power Plants not Possible: India Coal Ministry
 China Machinery Engineering Co. to build 600 MW Hwange Expansion in Zimbabwe
COMBUSTION TECHNOLOGIES/BOILER EFFICIENCY
 Wood Group installing ECOMAX® Systems on Combined Cycle Power Plants in US
 ABB to supply Symphony®Plus System for One Unit at 590 MW Grazia Deledda Sulcis in Italy
 Metso Modernizing Automation System at Parichha Power Plant in Uttar Pradesh, India
 EDF selects Symphony Plus for Le Havre and Cordemais
 Metso Automation for Huadian Jurong Xiashu Power Plant in China
GAS/OIL - US
 Pasadena Water and Power planning 71 MW Glenarm Repower
GAS/OIL – WORLD
 China Chengda Engineering Co. to build 225 MW Combined Cycle Plant in Bangladesh
 Groundbreaking for Takoradi 2 in Ghana
 MAN Diesel & Turbo Consortium to build 194 MW Zouk and 78 MW Jiyeh Power Plants in Lebanon
 Alstom to supply Equipment including Boilers, ESPs and FGD for 5x620 MW Yanbu 3 in Saudi Arabia
 GDF Suez confirms plans to Mothball Three Gas-fired Power Plants in France
GASIFICATION
 BHEL and NTPC to form Joint Venture for IGCC Power Plant
BIOMASS
 Delta hopes to convert Borssele (the Netherlands) from Coal to Wood Chips
NUCLEAR
 Japan’s Nuclear Regulations could delay Reactor Restarts
BUSINESS
 Obama suggests sale of TVA
 SPX and Shanghai Electric Joint Venture receives More than $80 Million in New Dry Cooling Systems Orders
 EPAs FY 2014 Budget Proposal
 Chinese Pump Revenues to Exceed $8 Billion in 2014
 Coal will Generate 77 Percent of the Flow Control and Treatment Revenues in the $45 Billion Power Market
 Flue Gas Desulfurization Revenues Will Range between $3 Billion and $8 Billion/Yr over the Next Three Years
HOT TOPIC HOUR
 New Developments in Mercury Measurement and Control unveiled in Hot Topic Hour on April 11, 2013
 “Mercury Measurement and Control – Part 3” is “Hot Topic Hour” on April 18, 2013 at 10 a.m. DST
 Upcoming Hot Topic Hours
For more information on the Utility Environmental Upgrade Tracking System, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=72
McIlvaine Hot Topic Hour Registration
On Thursday at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. Power webinars are free for subscribers to either Power Plant Air Quality Decisions or Utility Environmental Upgrade Tracking System. The cost is $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report subscribers and are $400.00 for non-subscribers.
2013
DATE SUBJECT
April 25 Control Technologies for Fine Particulate Matter Power
May 2 Flyash Pond and Wastewater Treatment Issues Power
May 9 Clean Coal Technologies Power
May 16 Power Plant Automation and Control Power
May 23 Cooling Towers Power
May 30 Air Pollution Control Markets (geographic trends, regulatory developments, competition, technology developments) Market Intelligence
June 6 Report from Power-Gen Europe (update on regulations, speaker and exhibitor highlights) Power
June 13 Monitoring and Optimizing Fuel Feed, Metering and Combustion in Boilers Power
June 20 Dry Sorbent Injection and Material Handling for APC Power
June 27 Power Generation Forecast for Nuclear, Fossil and Renewables Market Intelligence
July 11 New Developments in Power Plant Air Pollution Control Power
July 18 Measurement and Control of HCl Power
July 25 GHG Compliance Strategies, Reduction Technologies and Measurement Power
August 1 Update on Coal Ash and CCP Issues and Standards Power
August 8 Improving Power Plant Efficiency and Power Generation Power
August 15 Control and Treatment Technology for FGD Wastewater Power
August 22 Status of Carbon Capture and Storage Programs and Technology Power
August 29 Pumps for Power Plant Cooling Water and Water Treatment Applications Power
Sept. 5 Fabric Selection for Particulate Control
Power
Sept. 19 Air Pollution Control for Gas Turbines Power
Sept. 26 Multi-Pollutant Control Technology
Power
To register for the Hot Topic Hour, click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com

191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax; 847-784-0061

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