NEWS RELEASE                                                                                        August 2019

Fracking Growth is Changing U.S. CFT Markets

There is nothing which has impacted the market for combust, flow, and treat equipment comparable to hydraulic fracturing and the resultant production of inexpensive oil and gas. Tax cuts, deregulation and other factors pale in comparison.  In fact the loosening of regulations has had a negative effect. For example a $700 million NOx control project for BHE was canceled because of the reduction in requirements for NOx control in the Western U.S where there is concern about visibility impairment. 

The U.S. was already the largest combined oil and gas producer prior to April of this year when it also became the largest oil producer. Investment by the major oil companies is having a significant impact. The majors will produce half the oil coming out of the Permian basin in the coming decade.

This is important not only from the increased supply but the concurrent increase in refining and transportation capacity. Presently $100 billion is being spent for terminals, LNG liquefaction facilities, refineries, and petrochemical plants in Texas and Louisiana. Planned projects will generate a $20 billion per year capital investment and over $300 million per year in new CFT products.

This initiative also accelerates the concentration of CFT purchasing in a few companies. Chevron and Exxon will each be producing more than 1 billion barrels/day in the region.

The activities of the major players in the oil, gas, refining, and petrochemical industries along with weekly project updates are available as explained at N049 Oil, Gas, Shale and Refining Markets and Projects.

Market reports with specific oil, gas, and refining  CFT product forecasts are explained at http://home.mcilvainecompany.com/index.php/markets.