Spending for the
hydrocarbon processing industry is expected to exceed $222
billion next year, up 1.1% over 2011 spending, according to
information released on Friday at Hydrocarbon Processing
magazine's 38th annual HPI Forecast and Breakfast.
In the US alone, spending is
forecast to reach $57 billion, which is a 2.4% increase year on
The publisher and editors of
Hydrocarbon Processing released this information at
the breakfast event, held at the River Oaks Country Club in
The forecast breaks out capital
spending to reach $56.3 billion; maintenance spending to reach $66
billion; and operating spending to exceed $99.9 billion.
When broken out by sector,
spending in petrochemicals/chemicals is forecast
to hit $107 billion; refining expenditures will near $87
processing spending will surpass $23 billion; and spending
for synfuels is expected to reach $4 billion.
Even with healthy predictions
for expenditures in 2012, industry players continue to be more
cost conscious and cautious when making spending decisions for
major projects and capital.
Each year, company leaders rely
on the information from the HPI Market Data book to refine
their marketing strategies, recognize emerging trends and
discover new opportunities and areas of growth.
This year, the predominant trend in the hydrocarbon processing
industry is the pace of global economic recovery; this
indicator will greatly influence the types of energy used over
the next few years.
Additionally, the energy demand
among developing nations, like Brazil, Russia, India and China, will account for
93% of the new energy demand in 2012. Still, the global
hydrocarbon processing industry struggles to find a
steady-state situation for demand.
The full effect from the
2008 slowdown is taking hold [but] the global HPI continues to
grow, Hydrocarbon Processing editor Stephany
Romanow said. Developing nations will benefit from the
next upturn in fuels, petrochemicals and power. We see
continued expansion along with great emphasis
on sustainability and safety
In addition to presentations by
the Hydrocarbon Processing staff members, Joe Barnes,
the Bonner Means Baker Fellow at Rice Universitys Baker
Institute, spoke as the keynote speaker.
For more information, visit HydrocarbonProcessing.com or GulfPub.com.