BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research examines the global market for power generation in upstream oil & gas applications, including onshore and offshore, exploration, and production, providing market forecasts for capacity and revenue, segmented by generation technology and region, through 2026.
Technological advances, regulations, and macroeconomics are expanding the options available to exploration and production (E&P) companies as a variety of new business models are emerging that cut costs, boost efficiency, or otherwise improve operations in this energy-intensive industry. Click to tweet: According to a new report from @NavigantRSRCH, global capacity additions from power generation prime mover equipment are expected to grow from 3.9 GW in 2017 to 5.6 GW by 2026.
“Demand for upstream power generation is returning as oil and gas production recovers, but the energy equation is shifting,” says Adam Forni, senior research analyst with Navigant Research. “Faster production periods, cheaper electricity storage, and growing use of gas fuels are pointing toward growing disruption in this established industry.”
As disruption occurs, natural gas generator sets (gensets) are forecast to capture more market share from diesel as oil & gas producers use more wellhead gas for power generation, according to the report. In addition, as fast-producing shale oil wells shorten project timelines, rentals of power generation equipment are expected to grow. As battery storage declines in price, electricity producers are also expected to incorporate them into a growing share of sites to optimize power production and expand the capabilities of remote microgrids.
The report, Power Generation in the Oil & Gas Industry, analyzes the global market for power generation in upstream O&G applications, including onshore and offshore, exploration, and production. The study provides an analysis of key market developments and covers diesel, dual-fuel, and natural gas gensets, turbines, and microturbines. Global market forecasts for capacity and revenue, segmented by generation technology and region, extend through 2026. The report also examines the key technologies available for power generation in upstream O&G, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Power Generation in the Oil & Gas Industry, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.