The COVID-19 pandemic has had a significant impact on composites in the oil and gas market, just as it has on every industry worldwide. And while 2021 will likely be labeled a year of recovery, Ferrari Energy has high hopes for the years ahead.
As a recent ResearchAndMarkets.com report points out, composites in the oil and gas market are projected to reach roughly $1.4 billion in the next five years. Between now and 2026, the industry is expected to experience a rather impressive 6.5% Compound Annual Growth Rate (CAGR).
Some of the biggest drivers of this projected growth are increased oil and gas exploration and subsequent drilling planned for the next few years.
According to the report, an emerging trend in the industry is the introduction of carbon fiber for various applications and the construction of FRP pipes that will happen on-site and for any diameter and length. This reduces the cost of installation and transportation, which increases output and profitability.
Analysts predict demand for epoxy composites will experience the most significant growth in the next five years. Some of the primary reasons for this are its properties of quality adhesion, low shrinkage, high chemical and solvent resistance, and effective use as insulation for electrical.
Hydraulic fracturing that will extract natural gas from shale gas deposits has already resulted in the increased usage of composites based in epoxy, and that is expected to continue over the next five years. Epoxy-based composites are being used in frac balls, bridge and frac plugs, and pipes.
Other composite materials that are expected to drive growth in the industry include polyethylene, phenolic, and polyester. These materials are all used in the manufacturing of composite parts used by leading companies in the oil and gas industry.
Ferrari Energy is particularly excited about the prospects for the North American oil and gas market, which is expected to maintain its position as the largest oil and gas production market in the world.
In addition to more natural gas infrastructure projects coming online in the near future, the region has a high awareness of the advantages composite materials provide for oil and gas over other traditional materials.
Oil and gas pipeline construction is in high demand for offshore and onshore production sites, and that's likely to spur ongoing, stable growth for the composite oil and gas industry for the next five years.
Overall, Ferrari Energy is bullish on the future of composites in the oil and gas market, as is reflected in the ResearchAndMarkets.com 2021 outlook.