NEWS RELEASE                                                                                                                AUGUST 2013

Billion Dollar Opportunity for Thermal Treatment in the U.S. Oil and Gas Industry

Booming non-conventional oil and gas extraction in the U.S. is expanding the market for thermal and catalytic treatment systems. New regulations prohibit the discharge of methane directly to the atmosphere.  Flaring or combustion of the discharges is a temporary solution but longer term the laws will require capture and use.

There are opportunities for the complete range of thermal treatment systems including flares, thermal oxidizers, catalytic oxidizers and regenerative thermal oxidizers. These are identified in the McIlvaine Thermal/Catalytic World Air Pollution Markets.

There are more than 493,000 operating gas wells in the United States most predominantly concentrated (84%) in approximately ten states. These wells feed raw natural gas to approximately 500 gas-processing plants which dehydrate the gas and remove other constituents including hydrogen sulfide (H₂S), CO₂, nitrogen and natural gas liquids (NGLs) like butane, propane and ethane. The result is “pipeline quality” gas fed into a network of more than 305,000 miles of interstate and intrastate natural gas pipelines with approximately 1,400 compressor stations for pressure boosting prior to delivery to local distribution companies (LDCs) for sale to residential, industrial, commercial and power company users. Existing and new opportunities for air pollution control (APC) equipment and gas processing equipment are found throughout the value chain from the wellhead to local storage at the LDC. At every step along the way, there is a potential for fugitive emission or process thermal treatment systems.

In the Western U.S., shale is yielding large quantities of oil, but along with it, are significant quantities of gas which must be treated. This segment of the oil and gas industry is growing faster than any other. It represents a significant treatment opportunity.

Another application for thermal treatment is the methane containing ventilation air in coal mines. Because of the large amount of ventilation air, the pollution potential is significant.  Regenerative thermal oxidizers can oxidize the methane and become a revenue generator. Advances in technology including Micro Turbines are now allowing coal mining operations to profit from electrical power generation.

For more information on Thermal/Catalytic World Air Pollution Markets, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/105-n007