Oil & Gas Pipeline Construction in the US - Industry Market Research Report - a new market research report on companiesandmarkets.com
PR-Inside.com: 2014-03-31 06:47:05
Revenue in the United States gas pipeline construction market and oil pipeline construction industry is expected to grow at an average annual rate of 2.4% to $49.6 billion over the five years to 2013. Pipelines are essential for transporting vital fuel supplies to households and businesses. During the beginning of the five-year period to 2013, the aftermath of global energy price hikes and the opening of natural gas fields led to extraordinary investment growth in domestic energy resource developments, underpinning demand for pipeline and related infrastructure construction. Today, heavy investment in natural gas and oil infrastructure construction has the Oil and Gas Pipeline Construction industry booming. Hikes in energy prices and advancements in extraction technologies created a significant increase in domestic oil and natural gas production. This higher production also boosted demand for pipeline construction to connect existing infrastructure and markets.
Despite this growth, the industry was susceptible to volatility over the period.
For example, the recession cooled demand for energy infrastructure development from 2009 to 2011 as energy prices slumped and financing became more difficult. Additionally, the moratorium on deep-sea drilling in light of the 2010 Deepwater Horizon spill in the Gulf of Mexico deferred oil and natural gas pipeline developments in the region and hampered the industry´s performance over the past two years.
With this lull in project demand, IBISWorld expects that the Oil and Gas Pipeline Construction industry´s revenue will fall 12.3% in 2013. Like revenue, the industry´s profit performance has followed volatile energy investment trends over the past five years. Peaking at 11.0% of revenue in 2009, industry profit is expected to amount to 7.2% in 2013.
Looking forward, the industry is projected to experience stronger demand as new natural gas resources require infrastructure. In the five years to 2018, IBISWorld forecasts that continued investment in unconventional domestic energy sources (e.g. shale gas and oil sands), along with pressure to repair, replace and expand existing infrastructure and the recovery in residential construction, will bolster industry performance. As a result, the Oil and Gas Pipeline Construction industry is forecast to record revenue growth of 2.2% per year on average to $55.2 billion in the five years to 2018.
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