Market Trends of North America Axial Flow Pump Industry
This section covers the major market trends shaping the North America Axial Flow Pump Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- Oil and gas companies use axial flow pumps during operations to pump oil, petroleum products, and liquefied gases. The growth in oil and gas infrastructure development during the forecast period will propel the axial flow pump market.
- According to a bp statistical review of world energy, In 2021, North America produced 23.94 million barrels of oil per day. The United States is the largest oil producer generating 16.58 million barrels per day, and has a 69.27% share of total North American oil production in 2021.
- Canada is the fifth largest oil producer in the world and the fourth largest natural gas producer. The Canadian oil and natural gas industry operates in 12 of 13 provinces and territories. Every year, Canada's oil and natural gas production contributes billions of dollars to the country's economy and creates thousands of jobs.
- According to the Canadian Association of Petroleum Producers (CAPP), natural gas and oil investment is expected to increase by 22 per cent in 2022. Capital spending is expected to increase by CAD 6.0 billion to CAD 32.8 billion, up from CAD 26.9 billion in 2021.
- Due to declining hydrocarbon production and rising energy demand, Mexico acted out of necessity to allow outside participation in the oil and gas industry as well as to boost investment and growth. Private companies today recognize the potential for investment in Mexico, particularly in the petroleum sector, where years of underinvestment have left the nation unable to meet growing petroleum demands.
- In February 2022, BP begins operations at its Herschel expansion project in the Gulf of Mexico. As part of the first phase of the project, a subsea production system is going to be developed, as well as the first of up to three wells to be drilled from the Na Kika platform. The first well is going to increase the annual gross production of the platform by 10,600 barrels of oil equivalent per day.
- In May 2021, ITT Goulds Pumps, a United States company manufacturer, announced the launch of its newly redesigned 3700i API 610 OH2 Pump for the oil industry.
- Owing to the above points, the oil and gas segment is expected to dominate the axial flow pumps market during the forecast period.
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United States to Dominate the Market
- In 2018, the United States became the world's top crude oil producer and maintained that position through 2021 with 11.2 million barrels per day. The United States oil refineries obtain crude oil produced within the country as well as in other countries.
- According to a bp statistical review of world energy, In 2021, the United States consumed 18.7 million barrels per day, an increase of 8.7% from 2020, the sharpest increase for any country.
- With the rising number of maturing onshore oilfields in recent years, there has been growth in offshore exploration and production (E&P) activities. According to Energy Information Administration, the new fields planned to come online in 2022 are expected to account for 5% of natural gas production and 14% of crude oil production by the end of 2023 in the U.S. Federal Offshore Gulf of Mexico (GOM). Also, the Country expects that GOM natural gas production is expected to average 2.1 billion cubic feet per day (Bcf/d) in 2023, down 0.1 Bcf/d from 2022 and expects that GOM crude oil production will average 1.8 million barrels per day (MMb/d) in 2023, about the same as in 2022.
- In July 2022, According to the Biden administration's five-year plan, all offshore oil drilling in the Atlantic and Pacific oceans is expected to be banned, while some drilling in the Gulf of Mexico and the south coast of Alaska is expected to be allowed. In response to rising energy prices, the fossil fuel sector has urged the administration to increase offshore drilling to reduce gas prices.
- According to the United States Census Bureau, the government's capital expenditure on water, sewage, and other system utilities are USD 5.50 billion, an increase of 21.57% from 2020.
- In Greenbrier County, the U.S. Department of Agriculture (USDA) announced an investment of USD 75 million by USDA in critical infrastructure improvements that will ensure clean drinking water and sanitary sewer systems for decades to come.
- The United States Department of the Interior announced that the Bureau of Reclamation would invest USD 420 million for rural water construction activities in 2022, as authorized by U.S. President's Bipartisan Infrastructure Law. Water treatment plant construction, pump systems, reservoir construction, and other efforts have been undertaken to provide potable water to rural and tribal communities as part of the investment in rural water systems.
- Therefore, based on the above-mentioned factors, such as huge investments in oil & gas and water infrastructure, the United States is expected to positively impact the axial flow pump market during the forecast period.
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