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 year.
The publisher and editors of Hydrocarbon Processing released this information at the breakfast event, held at the River Oaks Country Club in Houston.
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 billion; gas 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 performance.
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.