Major players in the North American oil and gas market, which is characterized by instabilities, have taken a hit over the last couple of years due to the economic decline and price volatility. Furthermore, upstream companies look to these price fluctuations to dictate increases and decreases in exploration and production activities.
New analysis from Frost & Sullivan's (http://www.energy.frost.com) North American Prime Movers Market in the Oil and Gas Industry research finds that total market revenues are anticipated to grow at a compound annual growth rate (CAGR) of 2.5 percent from 2010 to 2017, to reach $1.03 billion. The United States accounts for nearly 82.4 percent of the equipment sold, and Canada maintains the remaining 17.6 percent.
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As upstream companies' budgets shrink, investments in drilling and exploration will be trimmed. However, since 2010, the stabilization of oil prices is gradually enhancing upstream activities and thereby, improving prime movers' growth rates to the levels experienced before the 2008 slump.
"Higher oil prices will encourage oil and gas companies to increase their budgets for exploration and production," said a Frost & Sullivan research analyst. "This will, in turn, result in technological advances and revenue generation in the prime movers market."
New reserves exploration, tapping oil sands, and higher numbers of deep water projects will shore up the market and compensate for the drying up of onshore fields. Unconventional supplies such as natural gas, coal bed methane (CBM), shale gas, and tar sands are expected to meet the current energy demand, which cannot be satisfied by oil reserves alone.
"As the conventional reserves of oil are mature and experience a production decline, unconventional reserves need to be explored," said the research analyst. "The key targets include the natural gas reserves in Alaska and the Rocky Mountains, oil sand projects in Canada, and technically complex initiatives such as deepwater exploration for global producers."
North American Prime Movers Market in the Oil and Gas Industry is part of the Energy & Power Systems Growth Partnership Services program, which also includes research in the following markets: Oil and Gas Industry–Overview of Major Indicators (Quarter 3 2011); North American Electrical Equipment Market for Oil and Gas; and Air Pollution in Oil and Gas Industry. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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North American Prime Movers Market in the Oil and Gas IndustryN925-14
Corporate Communications – North America
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SOURCE Frost & Sullivan