HOUSTON -- The outlook for the global
hydrocarbon processing industry (HPI) is upbeat. Global
spending is expected to exceed $279 billion in 2014, and
spending in the US alone is forecast to reach nearly $78
The publisher and editors of Hydrocarbon Processing
released this information at the magazines 40th annual
HPI Forecast and Breakfast, held Friday at the River Oaks
Country Club in Houston.
The $279 billion in overall spending is up nearly 15% from $244
billion in 2013.
The newfound optimism in the global HPI stems from the
increased availability of natural
gas supplies in several nations, the rich shale reserves in
North America, and a new expansion wave for petrochemicals.
The petrochemical outlook is especially
strong in North America, supported by low gas pricing, and the
Middle East, where new units are coming online. Both regions
are poised to expand petrochemical production capacity to
supply growing demand via increased exports.
The forecast breaks out capital spending to reach $77.7
billion, maintenance spending to reach $82.7
billion and operating spending to exceed $119.1 billion.
When broken out by sector, spending in the petrochemical sector is forecast to
hit $137.3 billion, refining expenditures will approach
$104.2 billion and gas
processing spending will be $38 billion.
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.
The expanding economies of non-Organization for Economic
Cooperation and Development (OECD) nations, including Brazil,
China, India and Russia, are driving new
energy demand. Incentivized to meet this need for energy,
producing nations are taking advantage of new natural
gas reserves, less expensive feedstocks, and investment in new
units and construction projects.
Due to its abundant shale reserves, North America is
particularly well-positioned to become self-sufficient in
energy over the next two decades. The US is also anticipated to
become a net exporter of liquefied natural
gas (LNG) within the next few years.
"Many market conditions and trends are converging to support
the uplift of the hydrocarbon processing industry, said
Stephany Romanow, editor of Hydrocarbon
The downstream is re-energized. Investment is ongoing
on a global basis. This project activity focuses on new
capacity, along with efforts to increase plant and equipment reliability, safety, energy
efficiency and more."
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