ARC: Control Valve Market Declines; Oil to Drive 2011 Rebound
September 14, 2009 // Published as a news service by IHS
Significant pre-existing order backlogs are helping dampen the impact of economic conditions, as ARC reported that several control valve suppliers said it would take years for them to work off the backlog accumulated by the beginning of 2009.
API Standards Collections ASME Boiler & Pressure Vessel Resources ASTM Petroleum Collection CERA Research Key factors in the overall and future health of the global control valve market, said ARC, are the price, availability and demand for oil.
The long-term trend, according to ARC, is increasing demand amid shorter supply. This will result in increased oil prices in the long term, increased investment in heavy oil production (such as oil sands), and increased investment in upstream oil & gas development and production in deep-sea fields.
ARC cited industry analysts who expect a price of $85 per barrel of oil within a year.
BRIC Countries to Fuel Growth
Developing economies such as Braziil, India and China are the primary growth engines for the global control valve marketplace, said ARC.
These countries, together with Russia, the Middle East and Eastern Europe will continue to prop up the global control valve market with increasing consumer demand from the growing global middle class, a healthy lending environment for capital investments that project solid returns, and the need for producing and saving energy to cope with rapidly rising energy demands and costs across the globe.
Source: ARC Advisory Group.