Sustained and Significant Growth Expected in the Downstream Maintenance Sector
Downstream asset maintenance expenditure in 2013 totalled $70 billion (bn) for the world’s population of approximately 12,800 facilities. Global spend is expected to increase 33%, compared to the previous five-year period, totalling $418bn from 2014 to 2018. An ageing existing asset population as well as a number of new installations and capacity increases drive this growth along with the price inflation of equipment and services. These are the findings of Douglas-Westwood’s first edition of its World Downstream Maintenance Market Forecast.
Report author, Kathryn Symes, commented, “Asset maintenance services are required in order to extend the life of facilities and prevent unscheduled downtime, as owners/operators seek to improve and/or extend feedstock and production capacities. The downstream asset maintenance sector has robust long-term drivers with global oil and gas demand expected to increase in line with population growth and economic development; both ultimately driving demand for refined products and natural gas.
“DW forecast steady growth in all service lines as ongoing expenditure is essential for the continuation of feedstock and production capacities. This is attributable to an increasing number of facilities that are reaching the end of their original design lives, increasing the extent of maintenance services required.
“Regionally, North America and Asia dominate global expenditure, with $270bn forecast to be spent over the forecast period, mainly due to their large and ageing installed asset base that requires a high level of maintenance. Although only a minor region (1% of global spend), Australasia is expected to show the most growth over the forecast period, driven primarily by a number of LNG projects due to come onstream during this period. By sector, asset services account for the majority of expenditure at 70%, with asset integrity accounting for the remaining.”