Shale gas to ignite demand for pumps in the EU

2018-02-12T16:47:09+00:00 July 15th, 2014|

Greater political acceptance of shale gas exploration and the growing need among European countries to be self-sufficient in terms of energy is expected to result in the growth for the pumps market Frost & Sullivan said.

Strategic Analysis of the Pumps Market in the European Shale Gas Industry, finds that the market earned revenues of $35.3 million in 2012 and expects this to reach $47.7 million in 2017.

“Vast shale gas reserves across Europe and the economic benefits of shale gas exploration will encourage exploration,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Niranjan Paul. “However, the potential growth of pump manufacturers targeting the region’s shale gas industry will vary according to the country.”

 

While the UK, Ukraine and Poland are at the forefront of shale gas extraction and production to meet energy requirements and reduce dependance from Russian gas imports, the industry will be effected by uncertain policies by the governments of France and the Netherlands. Both countries have enforced a ban on shale gas exploration for the time being. Citing earthquakes and pollution of drinking water.

Moreover, although Germany and the United Kingdom have issued permits, large-scale exploration is yet to begin since the feasibility of commercial shale gas production in Europe remains doubtful.

For example, Exxon Mobil withdrew from Poland after the drilling of two gas wells failed to yield commercial opportunities.

In Germany and Austria, oil and gas companies are required to conduct environmental impact studies for every shale gas project, escalating costs and significantly reducing the commercial viability of shale gas exploration.

Nevertheless, pump vendors will continue to find growth pockets as oil and gas companies such as Royal Dutch Shell and Conoco Phillips continue exploration activities during the forecast period. Shell is likely to conduct seismic testing and drill test wells in Ukraine, while Chevron is looking to stake capital in shale gas exploration in Poland and Romania.

“In fact, proponents of the shale gas industry in Europe predict that increased exploration would be beneficial to countries affected by the slowdown, as it is expected to attract investments from major oil and gas companies, result in job creation, and provide significant tax revenue for governments,” added Paul. “To benefit form these opportunities and ensure market expansion, pump manufacturers must develop high-pressure pumps that will be suitable for applications in the shale gas industry.”

(Source Frost & Sullivan)