Propelling the demand for oil and gas pipelines

Rapid industrialisation along with an increase in population can propel the demand for oil and gas. Increase in the exploration activities to locate new oil and gas reservoirs can have direct implications on the pipeline installation service market. Uneven distribution of crude oil and natural gas reserves coupled with the increasing demand for energy, will directly affect the oil and gas transportation sector. The pipeline transportation represents one of the fastest and cheapest methods of oil and gas transportation and any increase in the demand for oil and natural gas is expected to boost the pipeline installation market. New deep and ultra-deepwater offshore oil and gas discoveries can further propel the market for pipeline installation services.

Segmentation of the pipeline installation market can be done on the basis of products, application area, and geography. Pipeline installation services can be acquired to install crude oil, natural gas and refined product pipelines. Refined products can be in the form of liquefied petroleum gas (LPG), diesel, petrol, jet fuel, heating oil, naphtha, lubricants, chemicals and others. The pipeline installation services can be used to serve both onshore and offshore applications. These pipelines can either be cross border or domestic pipelines. Pipeline installation is a complex task that involves clearing and grading, ditching, engineering and bending, fabrication, hydrostatic testing and remediation.

Regional segmentation of the pipeline installation services market can be done by identifying the major oil and gas producing countries. Major countries include the US, Canada and Mexico in North America; Russia, Ukraine, Germany, Russia and the UK in Europe; China, India, Australia and Indonesia in Asia Pacific, Iran, Saudi Arabia, Algeria and Libya in Middle East and Africa. The Rest of the World segment includes the Latin America countries such as Brazil and Venezuela. The shale gas boom in the United States and the new oil and gas discoveries in West Africa and offshore Latin America have propelled the growth of the pipeline installation market. Besides crude oil, pipeline installation services are also benefitted by the demand for water and refined product transportation. Water transportation to areas with the water scarcity is one of the major factors behind the growth of the pipeline installation services market.

Increasing oil and gas demand, uneven distribution of crude oil and natural gas resources, rapid and continuous transmission ability are the major drivers for the pipeline installation services market. Moreover, the advancement in the pipeline installation or the pipeline laying services is another factor that has contributed towards the growth of the market. Geopolitical issues associated with cross border pipeline installations and presence of vessels as a mode of oil and gas transport are the major restraints to the pipeline installation services market. Increasing oil and gas demand, especially from the Asia Pacific countries can act as the opportunity for the pipeline installation services market. New oil and gas discoveries and expected shale gas boom in South America can again provide ample of opportunities to the companies involved in pipeline installation services.

Some of the major players in the pipeline installation services market include companies such as R. R. Sales Corporation, Allseas Group, Bilfinger Industrial Services, APi Group, Inc., Schwob Building Company, Ltd. and Upetrom Group.

Edited from source by Stephanie Roker

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