COVID-19 Potential Impact on Midstream Oil & Gas Equipment Market

Introduction:

Midstream is defined as a term used to describe one of the three major stages of operations in the oil & gas industry. Midstream oil & gas industry activities include the processing, storing, transporting, and marketing of crude oil, natural gas, and natural gas liquids.
The midstream oil & gas industry is involved in storage, transportation and wholesale marketing of crude oil from production sites to refineries. It also engages in the distribution of several refined products to respective downstream industries such as fuel retail outlets, chemical, and petrochemical industries
The midstream oil & gas equipment includes all the resources and equipment that are used in processing, storage, and distribution operations; for instance, fluid compressors, oil pipelines, fractionating and dehydration tanks, and LNG & LPG storage tanks and plants.

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Key Drivers of Midstream Oil & Gas Equipment Market

Rise in unconventional oil & gas production across the globe is expected to boost demand for midstream oil & gas equipment during the forecast period. According to The World Energy Council, the U.S. has 1,161 trillion cubic feet of technically recoverable unconventional gas. China has 1,115 trillion cubic feet of unconventional gas. The U.S. was the leading country in production of unconventional gas in 2018. Its annual production of unconventional gas stood at 22 trillion cubic feet. China’s production output stood at 10 trillion cubic feet in the same year/
Rise in discovery of oil & gas fields is also expected to the boost the midstream oil & gas equipment market during the forecast period. About 140 discoveries were made in 2018. The total estimate for discovered resources stood at around 9 billion barrels of oil equivalent in 2018. It was 10 billion barrels of oil equivalent in 2017. Offshore discoveries were prominent with 60% share, while gas resources accounted for about 40% share.
Government support in the form of initiatives and investments in the oil & gas sector has led to significant opportunities to manufacturers operating in the oil & gas industry, which in turn is projected to boost the demand for midstream oil & gas equipment during the forecast period.

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Key developments and Policies

In April 2020, EBARA Corporation’s (EBARA) overseas group company, Ebara Vietnam Pump Company Limited (EVPC), announced that in order to meet high product standards required in the market in Japan, the company has passed JIS Mark*2 certification reviews by Japan Quality Assurance Organization (JQA) on casting and is presently accredited with “JIS G 5121” and “JIS G 5502 certification.
In January 2020, Tenaris S.A. announced that the completion of acquisition of IPSCO Tubulars, Inc., a U.S.-based manufacturer of steel pipe, from PAO TMK. It also announced that the acquisition was a made for a sum of US$ 1,067 Mn. The acquisition is likely to enhance the U.S. manufacturing capacity of Tenaris S.A.

Regional Analysis of Midstream Oil & Gas Equipment Market

Based on region, the global midstream oil & gas equipment market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
Asia Pacific is expected to hold a considerable share of the global midstream oil & gas equipment market during the forecast period. The region is anticipated to maintain its dominant share in the near future, especially in China and India, on the back of growing environmental concerns and increased energy consumption. Furthermore, innovations in the oil & gas market are projected to provide an economical way to transport hydrocarbons in Asia Pacific, which in turn is estimated to drive the market in the region.
North America is also an important region of the global midstream oil & gas equipment market. The market in North America is expected to expand significantly during the forecast period, owing to the presence of a considerably high number of refineries in the U.S. with several export services. Additionally, the region has its own large oil & gas reserves, which eventually generate numerous opportunities for processing in the field areas, which is further expected to propel the market in the next few years.

Key players in market:

Key players operating in the global midstream oil & gas equipment market include: