Market Trends of Oil & Gas Automation Industry
This section covers the major market trends shaping the Oil & Gas Automation Market according to our research experts:
Variable Frequency Drives to Have Significant Share
- Vendors are increasingly introducing new products to meet the growing demand for energy efficiency.For instance, in October 2022, Rockwell Automation increased VFD Output Frequency for High-speed Motor Applications by introducing enhancements to medium-voltage PowerFlex 6000T variable frequency drives (VFDs). Demanding manufacturing environments like electric, oil, and gas operations rely on medium-voltage power to drive large industrial motors, often running 24 hours a day. The PowerFlex 6000T drives with TotalFORCE technology are claimed to deliver high-performance motor control and real-time operating system data that can help increase productivity and energy savings.
- Also, the increasing demand for oil and natural gas in India is boosting investments in the industry. According to the Indian Brand Equity Foundation, the government has implemented several programs to meet the rising demand for oil and gas. It has permitted 100 percent foreign direct investment (FDI) in several industry categories, including refineries, natural gas, and petroleum products.
- Without any disinvestment or diluting of domestic ownership in already-existing PSUs, the FDI limit for public sector refining projects has been increased to 49%. As seen by the existence of businesses like Reliance Industries Ltd. (RIL) and Cairn India, it now draws both domestic and global investment. By 2022, it is anticipated that the industry will bring in USD 25 billion in exploration and production investments.
The market is also witnessing an increased focus on process optimization. A VFD reduces downtime in the oil and gas industry because gas turbines require frequent maintenance, while VFDs and motors require very little maintenance. This enables more production, lower maintenance expenses, and improved productivity. This has encouraged various oil and gas companies to incorporate VFDs.
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North America Holds a Significant Market Share
- The U.S. is North America's largest oil and gas market. According to EIA, in 2021, the U.S. shipped petroleum to 176 nations and 4 U.S. territories at a rate of around 8.54 million b/d. About 2.96 million barrels per day (b/d) of crude oil made up 35% of all gross petroleum exports from the United States in 2021.
- The oil and gas business in North America is process-driven, with continuing operations and extensive surveillance techniques. It is difficult for administrators to monitor and control the utilization of the equipment in the industry. Numerous North American enterprises have adopted the use of an HMI with a controller, or DCS, that allows operators to oversee operations. These technologies automate upkeep and repair operations for machinery and safety processes, such as alarm monitoring systems.
- The region's need for automation in the oil and gas industry is anticipated to be driven by elements including the region's stable economy, widespread acceptance of automated technology among oilfield operations and services providers, a significant presence of leading technology and systems vendors, and joint investments by public and private entities in R&D activities.
- The U.S. EIA reported that the Permian Region, the country's largest oil-producing region, produced around five million barrels per day (Mbpd) of oil in January 2022. The federal agency also stated that when contrasted to the same period in 2021, the valuation grew by almost 13%. Thus, increasing oil production across the region is expected to create opportunities for market growth over the forecast period.
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