NEWS RELEASE                                                                                        April 2019

Low Cost Oil and Gas will Boost the U.S. Combust, Flow and Treat Market

The 2025 market for combust, flow, and treat (CFT) products will be much larger in many industries because of cheap oil and gas in the U.S. McIlvaine is revising its long range forecasts for all CFT products based on an anticipated surge of U.S. oil and gas production in the 2021-25 period. The petrochemical industry will show growth of 8 percent per year while the natural gas processing and transport growth will be even higher. There will be impacts on final products such as plastic  and synthetic fibers and then in the industries which finally use those products.  This includes building materials, appliances, pharmaceuticals and coatings.

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There will be a broader impact on the CFT components due to lower energy costs. The U.S. will be more competitive in energy intensive industries such as cement, inorganic chemicals, mining, steel, pulp & paper and food processing.  Based on the new U.S. oil and gas production estimates McIlvaine is adjusting its 2025 forecasts in each service by from a -5 percent change in flue gas desulfurization to a 30 percent increase for pumps.

Service

2025 Forecast Adjustment %

Fabric Filter 10
Scrubber/Adsorber 20
Flue Gas Desulfurization -5
Electrostatic Precipitator 3
Liquid Filtration including Filter Presses and Bag Filters 24
Cartridges 14
Reverse Osmosis, Ultrafiltration Microfiltration 20
IIoT & Remote O&M including Guide, Control, Measure 25
Thermal and Catalytic Oxidation 20
Valves 24
Pumps 30
Cleanrooms 12
Water, Wastewater Treatment Chemicals 24
 

The steel industry will benefit due to the fact that it is a major energy user and will be more competitive with lower oil and gas prices.  It also supplies products to many industries which  will directly benefit from the expanded oil and gas production. For example a large investment in steel is required for the construction of a hydraulic fracking manufactured sand plant.

A few industries will experience smaller markets. The coal fired power and specifically the flue gas desulfurization system market will actually shrink as more U.S. coal fired plants are retired than would have occurred with higher gas prices.

Details on each market report are provided at http://home.mcilvainecompany.com/index.php/markets.

The Most Profitable Market program is described at http://home.mcilvainecompany.com/index.php/component/content/article/30-general/1469-most-profitable-market-program

For more information on these reports contact Bob McIlvaine at This email address is being protected from spambots. You need JavaScript enabled to view it.   847 784 0012 ext. 122 or cell 847 226 2391