January 2015 - Water Market Insights 130

Sales of industrial pumps will reach $58.5 billion in 2019 according to the latest forecasts in Pumps World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

Subject	2019
Total	58,500
Centrifugal	41,000
Diaphragm	4,300
Reciprocating	7,400
Rotary	5,800

The new forecast includes pumps to transport liquids in the oil and gas industry. This is a $10.5 billion market and has previously been treated separately and not included in the total industrial forecasts. The centrifugal segment in oil and gas transfer is over $6 billion. When included, the 2019 centrifugal pump forecast rises from $35 billion to $41 billion.

Electric submersible pumps comprise more than 50 percent of the centrifugal segment in oil and gas. This segment is dominated by a few large companies. Reciprocating pumps are also widely used in oil and gas. The acquisition of Lufkin by GE has created a market leader.

The fall in oil prices has been taken into account in the 2019 forecast. McIlvaine concludes that oil demand will rise even faster with lower oil prices. Pump demand is proportional to oil quantities and not oil revenues. The need for older wells to install artificial lift pumps just to maintain existing production levels is another positive factor.

Lower oil prices could negatively impact pump sales in 2015 as there is a cutback on drilling projects. However, the OPEC countries need the higher prices in order to pay for government programs. So increased demand plus the longer term needs of OPEC countries will lead to higher oil prices over the coming years.

On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. These Webinars are free of charge to owner/operators of the plants. They are also free to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility Tracking System. The cost for others is $300.00 per webinar.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT	DESCRIPTION
January 15, 2015	Valves for Gas Turbine and Combined Cycle Plants (POSTPONED)	More Information
January 22, 2015	FGD Components Including Blowers/Compressors	More Information
January 29, 2015	MATS Compliance Choices	More Information
February 5, 2015	Gas Turbine Regulatory Drivers	More Information
February 12, 2015	Coal Gasification Air Pollution Control	More Information
February 19, 2015	Mercury Measurement and Capture	More Information
February 26, 2015	Power Plant Wastewater Treatment	More Information
March 5, 2015	Dry Scrubbing and DSI	More Information