- Upstream investments in oil and gas soften the blows dealt by the economic downturn
MOUNTAIN VIEW, California, June 13, 2012 /PRNewswire/ -- 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.
If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at email@example.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
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.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
North American Prime Movers Market in the Oil and Gas Industry
Corporate Communications – North America
SOURCE Frost & Sullivan