The shale revolution has provided refiners with abundant and cheap domestic crude supplies, allowing them with the cushion required for producing international competitive fuel. The US shale production has almost doubled since shale revolution started in 2009, and is expected to increase further, thus, in turn, would also supplement the US oil & gas downstream market. On the flip side, shortage of labor with a large number of needed repairs and maintenance during the forecast period is expected to act as a restraint for the market and could result in increased project cost, work delay, and, increased accidental risks. Moreover, the resources of operators and contractors are under constant pressure from the surge in petrochemical projects in the United States, despite many of the firms having large balance sheets.
Surge in Shale Production to Boost Downstream Capacity Expansion
The exploration and production activities for unconventional resources, such as shale oil/gas and tight gas are expected to remain high during the forecast period, 2018 - 2023. The Gulf of Mexico (GOM) production in 2016 set an annual high of 1.6 million barrels per day (b/d), surpassing the previous record established in 2009 by 44,000 b/d. Market conditions are improving significantly amid rising oil prices, coupled with the support of a new and favorable administration with pro-energy policies, which understands the strategic importance of a healthy oil & gas industry, the production of oil and gas is expected to further increase in the United States. The abundance of domestic crude supply and booming exports are expected to bolster the margins for the US downstream operators, leading to increased refining capacity. Unlike other countries with mega-refining projects, the United States is expected to invest heavily in relatively small refining projects, primarily condensate splitter projects, to process light sweet oil shale production. Similarly, following a decade of lost competitiveness, the petrochemical industry is also reemerging as a growth industry, owing to the cost-benefit enjoyed from low-cost shale gas in the United States, and is expected to increase its export capacity further.
US Gulf Cost - Hotspot of US Downstream Business
The Gulf Coast region is the largest refining center in the United States and is home to approximately half of the country’s refining capacity. As of February 2017, the region had 52 operating refineries with combined crude distillation capacity totaling 9.5 million barrels per stream day (bpsd). The US Gulf Coast region is expected to witness a fresh wave of investment in the downstream business outlook during the forecast period, particularly in the petrochemical projects. In March 2017, ExxonMobil announced USD 20 billion worth of investment through 2022, to expand its chemical and oil refining plants on the US Gulf Coast, with the aim of creating a downstream manufacturing powerhouse along the US Gulf Coast. The US oil & gas downstream business is expected to significantly benefit from similar expansion projects during the forecast period.
Key Developments in the Market
- December 2017: McDermott and CB&I combined in a transaction valued at USD 6.0 billion
- August 2017: Jacobs received expanded master services agreement to provide construction management for Chevron’s US refineries and terminals
- May 2017: ExxonMobil and SABIC signed an agreement for next phase of proposed US petrochemical project
- April 2017: Fluor selected by Marathon for contract at two Texas refineries
- March 2017: Total announced USD 1.7 billion investment to expand Total’s petrochemicals activities in Texas
Reasons to Purchase this Report
- Identify the drivers, restraints, and opportunities of the US oil & gas downstream market with in-depth analysis.
- Analyze the various perspectives of the country’s market dynamics with the help of PESTLE analysis.
- Identify and analyze the existing, under-construction, and planned downstream projects in the United States.
- Identify the complete oil and gas crude consumption and production scenario with their global market share.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3 months of analyst support along with the Market Estimate sheet (in excel).
This report can be customized to meet your requirements.
2. Research Methodology
3. Market Overview
3.2 Refining Capacity
3.3 Recent Trends and Developments
3.4 Government Rules & Regulations
4. Market Dynamics
5. PESTLE Analysis
6. US Oil & Gas Scenario
6.1 Oil & Gas Reserves in US
6.2 US Crude Production (2000-2017)
6.3 US Crude Consumption (2000-2017)
6.4 US Contribution to Global Oil & Gas Consumption (2000-2017)
7. US Downstream Oil & Gas Scenario
126.96.36.199 Existing Infrastructure
188.8.131.52 Projects in Pipeline
184.108.40.206 Contract Information
220.127.116.11 Upcoming Projects
7.1.2 List of Key Players
7.2 Petrochemical Plants
18.104.22.168 Existing Infrastructure
22.214.171.124 Projects in Pipeline
126.96.36.199 Contract Information
188.8.131.52 Upcoming Projects
7.2.2 List of Key Players
8. Key Company Analysis* (Overview, Business Segmentation, Financial Analysis**, Recent Development)
8.1.1 Marathon Petroleum Corporation
8.1.2 Magellan Midstream Partners LP
8.1.3 Valero Energy Corporation
8.1.4 ExxonMobil Corporation
8.1.5 Phillips 66
8.2 EPC Companies
8.2.1 Amec Foster Wheeler PLC
8.2.2 JGC Corporation
8.2.3 Flour Corporation
8.2.4 Jacobs Engineering Group Inc.
8.2.5 Chicago Bridge & Iron Company NV
(*List of companies is not exhaustive. Please let us know if you are interested in any company profile)
9. Competitive Landscape
9.1 Mergers and Acquisitions
9.2 Joint Ventures, Collaborations, and Agreements
10.1 Contact Us
(**Subject to availability on public domain)
- Marathon Petroleum Corporation
- Magellan Midstream Partners LP
- Valero Energy Corporation
- ExxonMobil Corporation
- Phillips 66
- Amec Foster Wheeler plc
- JGC Corporation
- Flour Corporation
- Jacobs Engineering Group Inc
- Chicago Bridge & Iron Company N.V.