North American Markets for Mechanical Prime Movers in the Oil and Gas Industry

SUMMARY

This Frost & Sullivan research analyzes the market for various primemover equipment including gas and steam turbines, medium voltage (MV) motors,and reciprocating engines in terms of different power ratings. Covering marketsin the United States and Canada, it evaluates the current and potentialopportunities and trends for the various end-user configurations. This researchalso analyzes major pricing, technological, geographical, and end-user trends,besides identifying the various challenges that affect the market.

High Costs of Crude Oil and Natural Gas Likely to Drive Exploratory Effortsand Demand for Prime Movers

Rising prices of crude oil and natural gas are likely to benefit themechanical prime mover markets in North America. Since energy requirements inNorth America are huge and constantly growing, there is a strong possibility forenhanced exploratory efforts to obtain greater supplies of crude oil and naturalgas. Given the lack of viable alternative energy sources, this trend is likelyto intensify, and thereby, drive the potential demand for mechanical primemovers.

"With crude oil and natural gas prices continuing to remain high, theenergy demand growing inexorably, and the dependability of imported crude oilbecoming increasingly questionable, indigenous oil exploration in North Americais bound to grow. As a result, the demand for mechanical prime movers in the oiland gas industry is likely to improve appreciably," notes the analyst ofthis research service.

Compliance with Rigorous Standards and Emission Requirements – aStrong Challenge

The North American mechanical prime mover markets for the oil and gasindustry have been adversely affected due to the stagnant economy, over the lastfew years. As suppliers of equipment to this industry, prime mover manufacturersare required to meet the increasingly stringent safety standards set by theAmerican Petroleum Institute (API) on the one hand, and strict emissionrequirements mandated by the Environmental Protection Agency (EPA) on the other.However, adhering to the emission regulations often involves incorporatingcostly technological improvements in the products – a factor that willimpact the equipment manufacturers negatively as the market is highlycost-driven.

Increased Overall Market Size Expected to Aid Growth of Prime MoversIndustry

With the power generation sector shifting toward natural gas as the preferredsource of energy, the push to explore gas-rich areas such as Alaska and theRocky Mountains and import liquefied natural gas (LNG) from countries such asIndonesia, Australia, and Nigeria is likely to increase. Combined with thecontinuing demand for gasoline, aircraft fuel and diesel, these factorstranslate into improved growth for the prime mover markets.

The EPA' s emission requirements are primarily expected to drivetechnological advances in these markets. Companies that develop superior designsfor gas turbines and reciprocating engines to help lower the level ofpollutants, or build advanced material technologies to sustain higher gasturbine operating temperatures are likely to gain greater market share.

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

Introduction

Market Overview

Market Definition and Segmentation

Industry Challenges

Market Trends

Revenue and End-user Trends

Pricing Trends

2 THE NORTH AMERICAN TOTAL OIL AND GAS MECHANICAL PRIME MOVERS MARKETS

Introduction

Market Overview

Market Definitions and Segmentation

Important Technical Parameters

Market Engineering Measurements

Industry Challenges

Market Drivers and Restraints

Market Drivers

Market Restraints

Market Trends and Forecasts

Pricing Trends

Technology and Regulatory Trends

End-user and Geographic Trends

Total Revenue Forecast

End-user Application And Demand Analysis

End-user Application

Demand Analysis

Frost & Sullivan Awards

Customer Service Leadership

Market Leadership

Business Development Strategy

3 NORTH AMERICAN GAS TURBINE MARKET FOR MECHANICAL PRIME MOVERS IN THE OILAND GAS INDUSTRY

Introduction

Market Overview and Definitions

Market Forecasts

Total Revenue Forecasts

Revenue Distribution by Country

Revenue Analysis by End-users

Competitive Environment

Market Share Analysis by Revenues

Industry Structure

4 NORTH AMERICAN MEDIUM VOLTAGE MOTOR MARKET FOR MECHANICAL PRIME MOVERS INTHE OIL AND GAS INDUSTRY

Introduction

Market Overview and Definitions

Market Forecasts

Total Revenue Forecasts

Revenue Distribution by Country

Revenue Analysis by End-users

Competitive Environment

Market Share Analysis by Revenues

Industry Structure

5 NORTH AMERICAN STEAM TURBINE MARKET FOR MECHANICAL PRIME MOVERS IN THE OILAND GAS INDUSTRY

Introduction

Market Overview and Definitions

Market Forecasts

Total Revenue Forecasts

Revenue Distribution by Country

Revenue Analysis by End Users

Competitive Environment

Market Share Analysis by Revenues

Industry Structure

6 NORTH AMERICAN RECIPROCATING ENGINE MARKET FOR MECHANICAL PRIME MOVERS INTHE OIL AND GAS INDUSTRY

Introduction

Market Overview and Definitions

Market Forecasts

Total Revenue Forecasts

Revenue Distribution by Country

Revenue Analysis by End Users

Competitive Environment

Market Share Analysis by Revenues

Industry Structure

7 APPENDIX

Definitions

Glossary of Terms

List of Abbreviations