WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
Brief Insights
Large Combust, Flow and Treat Purchases by Offshore Oil and Gas Operators Will
Accelerate Starting in 2019
Impact of IIoW Empowered IIoT on the Combust, Flow and Treat Market
Scrubber Adsorber Knowledge System Covers Industrial Gas Purification
Brief Insights
The Offshore Markets and IIoT webinar on February 28 is one of a long series of
recorded webinars which include the recent Shale Gas webinar, the Refinery
webinar and one a year ago on the broader Oil and Gas Market and the Impact of
IIoT.
You can register for the offshore webinar at Free Market Webinars
View the Shale Gas Webinar at https://youtu.be/UxZCfMhBJ7k
View the Refinery Webinar at https://youtu.be/N0CgrGcfMAU
View the Oil and Gas Webinar at https://youtu.be/o7kJSXixFHs
Large Combust, Flow and Treat Purchases by Offshore Oil and Gas Operators Will
Accelerate Starting in 2019
The offshore oil and gas industry even at its low point this year will invest
over $150 billion. While total investment has been falling the investment in
IIoT and Remote O&M has been increasing. With total investment moderately
increasing through 2022 coupled with accelerated IIoT investment, this market
will be significant for combust, flow and treat suppliers.
One reason it will be very important is that cutting edge IIoT and remote
monitoring technologies are needed due to the remote surface locations of rigs
and the difficult challenges of subsea operation.
Rystad Energy believes global offshore investments will bottom out at $155
billion in 2018, and then investments grow steadily year by year going forward.
This growth comes from high offshore activity, driven mainly by an increasing
oil price and companies' ability to cut costs to improve the profitability of
their projects. These two factors are resulting in companies actually deciding
to go through with more investments, compared to the last three years. Several
large projects demanding significant investments in the upcoming years, with Mad
Dog Phase 2, ACG, and Bonga Southwest as the most important. Another factor
explaining the investment growth is the increased share of ultra-deep-water
projects, defined as assets in waters deeper than 1,500 m.
At a country level, the picture is mixed. Both in the years before and after the
downturn, the five most important countries, in terms of offshore investments,
were the US, Norway, Brazil, Australia and the UK. These countries' offshore
investments summed up to $155 billion in peak year 2014, nearly half of the
global total. However, Rystad sees slightly different developments after the
price collapse and going forward. Norway and Brazil follow the global trend,
with investments dropping roughly 50% before recovering to about 70% of 2014
peak investments. The US and UK investments were hit a bit harder, down roughly
65%, and only managed to recover to 60% (US) and 42% (UK) of 2014 levels.
The market for guide, control and measure will grow faster than the total
offshore capital expenses.
Choke Valves in Offshore Oil and Gas
The choke valve market ranges between $250 million and $400 million per year
depending on the definition and where we are in the oil and gas cycle. A
significant portion of choke valve sales are to oil and gas companies. The
definition also has a major effect on the revenue determination. The terms
choke, control and axial are used in different ways. With some definitions, the
market is much larger than with others. Here are some ways the term is defined:
Flow path: Angle most important - if it is axial it is control, if it is angle
it is choke.
Trim: If one type of trim is used it is most suitable for choke, if another it
is for control.
Location: If it is extraction it is choke, if it is other applications it is
control.
Valve type: For some valve suppliers "choke" is just one of a number of
applications and not a type of valve.
With remote monitoring and IIoT evaluation of choke valve performance it is
important that the relevant decisive classification of applications, valve
types, and materials be clarified. This is an ongoing project. To view the
questions and present status click on:
Choke Valve Decision Guide
Subsea platforms for oil and gas extraction provide a lot of advantages compared
to floating fabrication - first and foremost in terms of cost savings and
reduced environmental impact. The high-pressure pump is the heart of the Subsea
Hydraulic Power Unit, required to work non-stop 24/7 with outstanding
reliability.
Danfoss offers chemical liquid pump solutions designed according to the API 674
and 675 standards and optimized for subsea applications, operating smoothly at
depths up to 3,000 meters. The pumps for subsea applications are delivered in
Super Duplex. The compact and lightweight pump unit guarantees constant
operation for six years without service and maintenance. The only lubricant
needed is the pumped fluid that keeps the pump running subsea, cycle after
cycle.
Subsea applications are characterized by limited space and an extremely harsh
environment. In the Danfoss product portfolio you will find chemical liquid
pumps fulfilling all requirements to subsea systems. The axial piston technology
delivers powerful performance and reduces the pump size and weight to a minimum.
The use of high-grade stainless steel and carbon-reinforced PEEK from surface to
core of the pump ensures complete corrosion resistance when submerged.
To register for the February 28 webinar click on Free Market Webinars
For information on the Guide, Control, and Measure Market click on N031
Industrial IOT and Remote O&M
For information on the Oil and Gas Markets, Profiles, and Projects click on N049
Oil, Gas, Shale and Refining Markets and Projects
Impact of IIoW Empowered IIoT on the Combust, Flow and Treat Market
There is a sea change in the obtainable combust, flow and treat market. Those
companies leveraging the Industrial Internet of Wisdom (IIoW) to empower the
Industrial Internet of Things (IIoT) will generate both higher revenues due to
higher margins per unit sale but also increased market share. An example would
be condition monitoring at the dozens of BASF plants around the world. The
process management system is built around use of Samson valves and E+H
instrumentation. At the very least Samson and E&H have expanded their market
share at all the BASF plants around the world. to the extent that the sales
include edge computer software built upon product and process knowledge the unit
sales are also increased.
Markets can be divided into four categories including the three traditional ones
and a new one created by the sea change in the business environment.
TAM or Total Available Market is the total market demand for a product or
service.
SAM or Serviceable Available Market is the segment of the TAM targeted by your
products and services which is within your geographical or asset reach.
SOM or Serviceable Obtainable Market is the portion of SAM that you can
capture.
WOM or Wisdom-based obtainable market is the bigger opportunity created by a
sea change in the route to market.
Two pump companies will be substantially impacted by the sea change. One
embraces it and one does not.
Revenues Before and After IIoW Empowered IIoT
Company Before
After- Based on SOM After - Impacted by WOM After - Total
A $$ $$$ $ $$$$
B $$ $ (Loss of Market Share) $
In this example two pump companies had equal sales before the sea change. After
the sea change one company loses half its market while the other one doubles
revenues. The unit revenues for Company A are up 50% ($$ to SSS). This is
because the customers will buy from the company with WOM capability. Due to WOM
edge computer and controls additions the revenues per unit of sales add another
$ to the total.
The impact of IIoW will be more important than that of IIoT. Steps to leverage
IIoW can be taken immediately independent of eventual edge computing process
development. In fact the edge computing process management product will be based
on IIoW initiatives. These initiatives include greater knowledge of how products
present and future can improve specific processes for specific customers. This
wisdom in turn is based on interconnection of people and knowledge.
The five-step program to leverage IIoW is found at www.mcilvainecompany.com.
Scrubber Adsorber Knowledge System Covers Industrial Gas Purification.
Here are the headlines for the February Scrubber Adsorber newsletter which is
part of the Knowledge Network described at 2ABC Scrubber/Adsorber/Biofilter
Knowledge Systems
SCRUBBER/ADSORBER
NEWSLETTER
February 2018
No. 524
Table of Contents
MARKETS
Detailed Forecasting of IIoT by Country and Company in the IIoT and Remote O&M
Report
IRON AND STEEL
Tokyo Steel's Tahara Works in Japan has Placed an Order for One NextGenฎ
System for their DC EAF-Consteelฎ
ArcelorMittal Kryvyi Rih Wins All-Ukrainian Environmental Competition
PSC ArcelorMittal Kryvyi Rih Awards SMS Group a Contract for Two Secondary
Metallurgy Plants and Two Continuous Billet Casters
ODOR CONTROL
Maintenance the Key to Maintaining Performance of Pig House Scrubbers
New Scrubber Planned for Washington, MO Treatment Works
SHIP EMISSIONS
Yara Marine has been Granted a Patent for their Exhaust Gas Cleaning Scrubber
Technology
HHI Develops Scrubber Technology with Smaller Footprint
REFINERY
New Scrubber Online at Utah's Largest Refinery
BIOGAS
California Utilities Issue Draft Solicitation for Dairy Biomethane Pilot
Projects
Valmet to Supply a Flue Gas Cleaning System to Vantaan Energia's Biopower
Plant in Martinlaakso
Valmet to Supply an Extensive Automation and Data Collection Solution to
Gasum's Biogas Plants
RESEARCH
PNNL Demonstrates Tiny Porous Materials Can Economically Separate Xenon Gas
out of Waste Streams