The demand for oil and gas has been forecast to increase on an average of 1.7 percent from 2005 through 2015. The international energy agency expects a 15 percent rise in oil demand by 2030. In addition, new regulations announced by various countries and organizations are also driving the development and expansion of the oil refining industry. As a result, the focus for oil and gas companies is especially on lean manufacturing and efficient processing which is likely to strengthen the position of automation in the oil and gas industry.
Focus on Increasing Efficiency Drives Automation of Manufacturing Processes
A significant damper to the demand for oil and gas is the carbon emission control systems that have been enforced in developed economies; the European Union (EU) for instance has stringent emission norms for automobiles, refineries, and power plants. Despite this real threat, the incessant demand for oil and gas from developing regions such as Asia Pacific is likely to aid the automation and software solutions market. With the shift of manufacturing to the Asia Pacific regions, it is likely that at the end of the forecast period, over 70 percent of the oil demand will arise from developing countries in this region.
Moreover, as natural resources decline, the need to lower operating costs and increase efficiency is on an all-time high. The oil and gas industry is constantly searching for new reserves in order to enhance its supply potential and is also keen to upgrade its existing infrastructure. "As a result, in the future, upstreaming is likely to drive the capital investments in oil and gas sectors; with a majority of the demand rising from the transportation sector, the importance of the middle stream is also expected to grow," explains the analyst. "In addition, due to ever-increasing demand, manufacturers are being forced to automate their processes in an effort to maximize their plant utilization."
