HOUSTON -- Spending for the hydrocarbon processing industry (HPI) is expected to exceed $230 billion next year, up 3.6% over 2012 levels, according to a new report unveiled Friday.
Meanwhile, spending in the US alone is forecast to reach $58 billion, representing a 1.8% increase year on year. The publisher and editors of Hydrocarbon Processing released this information at the magazines 39th annual HPI Forecast and Breakfast, held at the River Oaks Country Club on Friday morning.
The forecast breaks out capital spending to reach $57.6 billion; maintenance spending to reach $69 billion; and operating spending to exceed $103.9 billion.
When broken out by sector, spending in petrochemicals/chemicals is forecast to hit $114.4 billion; refining expenditures will approach $89.8 billion; gas processing spending will be $22.3 billion; and spending for synfuels is expected to reach $4 billion.
Even with healthy predictions for expenditures in 2013, industry players continue to be more cost-conscious and cautious when making decisions for major projects and capital.
Each year, company leaders rely on the information from the Market Data book to refine their marketing strategies, recognize emerging trends and discover new opportunities and areas of growth.
This year, the predominant HPI trend 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, such as Brazil, Russia, India and China, will account for the majority of new energy demand in 2013. Still, the global industry is struggling to find a steady-state situation to account for demand.
The world order for the global HPI has changed as a byproduct from the 2008 slowdown, said Hydrocarbon Processing editor Stephany Romanow.
Developing nations are the new demand centers for fuels, petrochemicals and power. We see continued expansion, along with great emphasis on sustainability and safety performance.
In addition to presentations by Hydrocarbon Processing staff, US Congressman Pete Olson (pictured right) was present as the keynote speaker and shared his views on the energy renaissance for Texas and America as a whole.
For more information on the HPI Market Data book, please click here.
If you would like a copy of the PowerPoint slides from Friday's breakfast presentation, email HP here.