The Commerce Department’s International Trade Administration projected that rising oil and gas prices worldwide will spur an increase in U.S. oil and gas equipment exports during the next four years.
The Commerce Department’s International Trade Administration forecasts that rising oil and gas prices worldwide will spur an increase in U.S. oil and gas equipment exports during the next four years.
The agency’s study, 2017 Upstream Oil and Gas Equipment Top Markets Report, suggested that the five-year slump in oil prices should reverse course in 2017, resulting in new drilling activities in overseas deep water and shale formations.
“Now that oil prices are up, the industry is renewed and reinvigorated and new export opportunities are emerging as a result,” said U.S. Acting Commerce Undersecretary for International Trade Ken Hyatt. “We expect a significant level of growth in this important sector, leading to additional U.S. exports and job creation.”
According to the Commerce Department, the United States is the fourth largest exporter of oil and gas equipment with nearly $18 billion in export sales, or 11 percent of the $166 billion global market. The total world market for oil and gas equipment should increase to $205 billion in 2020 – an increase of nearly 23.5 percent, the report noted.
Yet U.S. oil and gas equipment exports face strong competition from other overseas suppliers, such as China, Germany and South Korea. Canada remains the largest foreign export market for U.S. oil and gas equipment manufacturers, followed by Mexico, the United Kingdom, Norway, Brazil, the Netherlands and Nigeria.
Commerce said this year’s 83-page Oil and Gas Top Markets Report was expanded to include the top 151 countries for U.S. oil and gas equipment exports (up from 74 countries in previous years). It also includes detailed market analysis of Canada, Mexico, Australia, Brazil, India, Kuwait, Singapore and Guyana; and considers other potential regions for U.S. oil and gas equipment exports, including the Caspian Sea (Azerbaijan and Kazakhstan) and West Africa (Senegal and Mauritania).
U.S. oil, gas equipment exports to rise
