The buyers prefer conventional power generation sources from coal, petroleum, and natural gas because of their low cost and easily accessible through extensive distribution networks of power suppliers. Upscaling power requirements from various sectors, including household, fertilizers, and petrochemicals, particularly from emerging economies in Asia-Pacific and the Middle East and Africa, is expected to remain favorable for the industry. Furthermore, various regulatory bodies including European Commission and Federal Energy Regulatory Commission (FERC) have implemented supportive policies which have prompted the power generation and distribution companies to increase spending on the inclusion of smart devices and emphasizing on improvement in energy efficiency.
Growing energy consumption and increasing concerns about reducing greenhouse gas emissions are projected to promote renewable energy utility. As a result, renewable energy generated from solar, wind, and hydroelectricity has gained momentum. It has been well accepted by the buyers of end-use segments, namely the chemical and fertilizer sectors. Furthermore, depleting fossil fuel resources on a global level paved the way for the authorities and energy agencies to launch new policies which will promote new investments in renewable energy sources, including solar power.
Over the past few years, the upstream oil & gas industry has been increasingly spending on various technologies, including directional drilling, produced water treatment, and enhanced oil recovery, which aims to increase the production output of crude oil natural gas. Furthermore, the growing energy demand and depletion of conventional gas reserves prompted the scope of E&P in unconventional sources such as shale gas, tight gas, gas hydrates, and coal bed methane.
Rising concern towards pipeline safety coupled with the increasing number of new regulations aimed at ensuring secure transportation of oil and gas is projected to promote the scope of pipeline infrastructure in the oil & gas sector. Furthermore, crude oil-producing companies' increasing spending on forward integration to invest in more value-added products from refined distilled products and petrochemicals is expected to open investment in the downstream oil & gas sector in the next few years.
Well intervention services use monitoring pressure and temperature at the reservoir. In addition, these services are used to transport fluids and gases, stimulate the well, and make it ready for production through enhancing the flow of hydrocarbons. Development of new oilfields on a global level due to the introduction of new technologies to increase the output of crude oil or natural gas is expected to promote the utility of well intervention services. Furthermore, growing spending on E&P in the deep state and ultra-deep sea in the North Sea, Gulf of Mexico, South China Sea, and the Persian Gulf is projected to increase the scope of well intervention services.
Over the past few years, the governments of various countries have been launching new initiatives aimed at the deployment of smart grids and increasing awareness of energy conventions. For instance, in November 2021, the prime ministers of India and the U.K. launched an initiative under the name Green Grids Initiative – One Sun, One World, One Grid. This initiative will build an infrastructure that will include the generation of various sources of renewable energy and continental grids. Furthermore, the infrastructure will consist of smart grids that connect a million solar panels, charging stations for electric vehicles, and microgrids in rural areas.
Growing demand for reliable and uninterrupted power supply from manufacturing, construction, oil & gas, residential sectors is expected to promote the utility of equipment, namely, pump motors, engines, and generator sets. Over the past few years, the customers have been interested in purchasing those power generators that can operate in standby power and minimize purchase and installation expenditures incurred. In May 2020, Caterpillar Inc. introduced Cat GC diesel generator sets, a new line of standby power solutions configured with features that offer exceptional customer value by delivering performance with minimized purchasing and installation costs.
The growing adoption of smart devices and increasing spending on advanced automation and controls systems are expected to remain the key trends in the energy transmission and distribution segment. Furthermore, supportive policies aimed at increasing the energy output from alternative sources including solar, wind, hydroelectricity, and tide by governments such as the U.S., U.K., Germany, China, Japan, and India is expected to open new avenues for the players operating in energy transmission and distribution
Rising adoption of lithium-ion batteries in the renewable energy industry coupled with shifting inclination towards low-carbon fuel economy on a global level is projected to expand the scope of battery energy storage systems. Furthermore, rise in the number of data centers and a growing number of rural electrification projects, particularly in developing economies, including China and India is expected to open up new avenues for energy storage systems in the near future.
Over the past few years, digitalization has been seen as one of the key technologies that can reduce operational costs and ensure the smoothing of various internal processes. In December 2021, Maersk Drilling launched a subsidiary under Horizon 56 Branch to digitalize offshore drilling processes. The subsidiary is an extension of Maresk Drilling inhouse “RigFlow solution,” which standardize and digitalizes the core various parameters, including real-time exchange of information between power firms, onshore planning units, offshore drilling teams who are operating the rig, and the supporting service companies in the operations
Some of the key drilling equipment includes drill pipes, drill bits, logging tools, downhole tools, drilling fluids, and rotary hoses. The drilling equipment manufacturing companies have been designing specialty equipment and consumables capable of improved longevity and enhanced durability. For instance, in October 2020, Haliburton Company launched a new drill bit product under the brand name, Crush & Shear Hybrid Drill Bit. The product is designed based on new technology, which combines the efficiency of polycrystalline diamond compact (PDC) cutters with torque-reducing features of rolling elements. These drilling equipment are capable of increasing drilling efficiency and maximizing bit stability
Over the past few years, implementation of strict regulation on produced water discharge limits has fostered the scope of technologies for oil-water separation and enhanced crude oil recovery efficiency. Furthermore, the depletion of crude oil reserves and natural gas in Saudi Arabia and Russia on account of increasing capital expenditure in drilling and production is projected to prompt the players to invest in unconventional sources such as shale gas, coalbed methane (CBM), and gas hydrates. As a result, the industry participants in upstream oil & gas sectors are projected to increase the use of produced water treatment services in the near future.
In March 2021, Departments of Energy, Interior, and Commerce in the U.S., announced New Leasing, Funding, and Goals to promote the momentum in Offshore Wind Energy on a domestic level. This supportive policy is expected to expand the offshore wind power capacity to 30GW by 2030. The U.S. is expected to report the installation of new offshore wind projects. It has been observed that the U.S. states will spend more than USD 60 billion on offshore wind projects over the next ten years.
Upscaling offshore wind capacity in the U.K. due to supportive policies of domestic government to induce confidence among developers, supply chain companies, and the financial sector are expected to open new market avenues. For instance, in February 2021, Crown Estate auctioned seabed rights which will pave the way for installing about 8GW of new wind.
Chemical enhanced oil recovery (CEOR) has been emerged as an efficient oil recovery technology to recover bypassed oil and residual oil accumulated in the reservoir. Such technologies play a crucial role in increasing the oil recovery factor (ORF) by utilizing various types of chemical flooding. In January 2021, Gazprom Neft Technology partnerships and SNF Vostok signed a cooperation agreement to develop, test, and launch CEOR technologies aimed at the Russian market. This partnership is expected to ensure the production and supply of polymers to Gazprom Neft projects that involve CEOR technologies.
The increasing number of offshore oil & gas exploration projects aimed in various key regions, including Africa and North America, is projected to promote the scope of well intervention services. Moreover, the rising spending on digitalization and automation in intervention services has limited the complexity associated with restoring wells. As a result, well intervention service providers have been launching new autonomous well intervention services to maximize the production output and reduce overall intervention expenditure.
The increasing number of offshore oil & gas exploration projects aimed in various key regions, including Africa and North America, is projected to promote the scope of well intervention services. Moreover, the rising spending on digitalization and automation in intervention services has limited the complexity associated with restoring wells. As a result, well intervention service providers have been launching new autonomous well intervention services to maximize the production output and reduce overall intervention expenditure.
In February 2022, Schlumberger Limited launched a new reservoir mapping-while-drilling service intended to provide real-time 3D profiling of reservoir objects. This service will be sold under the preposition of GeoSphere 360, which improves the understanding of reservoir nature and enhances well placement for maximizing returns from complex reservoirs. Furthermore, the ability of this technology to identify fluid bodies and faults at a volumetric reservoir scale is expected to pave the way for oil & gas field operators to invest in it.
The industry participants operating in the battery market have been increasing spending on developing next-generation battery systems, likely to be sustainable and effective alternatives to conventional counterparts. For instance,
In February 2022, Polarium launched next-generation battery system under the brand name Generation 6. This product is manufactured for additional fire suppression systems, liquid cooling technology, and UL 9540A. In addition, the product contains a humidity & shock sensor that can prevent exposure to moisture. On the other hand, in March 2022, Urban Electric Power launched a new alkaline-based energy storage system under Ohm-Core's brand name. The product is easy-to-install and recharges from the power grid. Ohm-Core batteries can provide the power supply for one to three days at a time and are long-lasting for ten years.
