This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hectic Exploration Activities Make A Case For Electrical Equipment In The Oil And Gas Industry, Finds Frost & Sullivan

SINGAPORE, Oct. 12, 2012 /PRNewswire/ -- The escalating demand for energy in the Asia Pacific has set off a spate of exploration activities in the oil and gas sector, creating a vast market for electrical equipment and solution suppliers to sell into. Equipment suppliers will also feel buoyed by the discovery of oil and gas resources in the region, as it encourages refineries and petrochemical companies to initiate several upstream and downstream projects.

New analysis from Frost & Sullivan ( http://www.energy.frost.com), Electrical Equipment and Solution for Oil and Gas Markets in the Asia-Pacific , finds that the market earned revenues of $614.4 million in 2011 and estimates this to reach $793.9 million in 2016 on the back of field exploration activities, oil and gas field developmental projects, demand for oil and liquid nitrogen gas for power generation, as well as industrial development.

"Currently, these gas fields use obsolete production technology, resulting in inefficient production," said Frost & Sullivan Research Analyst Avanthika Satheesh P. "Owing to the non-renewable nature of oil & gas resources, there is an urgent need for advanced and specialized techniques such as enhanced oil recovery, to extract oil from depleting resources."

Acknowledging the importance of foreign investments and sophisticated technology, the governments of countries such as Malaysia and Indonesia have announced tax waivers on equipment imported for resource extraction and development.

The Indonesian government has eliminated import taxes on offshore and subsea exploration equipment in the upstream sector, while the Malaysian government announced incentives to promote the development of new oil reserves and hard-to-reach oil fields to improve domestic production.

While on the one hand tax waivers benefit the electrical equipment and solutions market, carbon taxes are dampening its growth prospects by discouraging oil and gas production. The market is also pegged back by the lack of skilled labor force and dependence on the availability of resources. In oil-deficit countries, revenues are mainly generated by downstream segments and exploration activities. The market is further hindered by project delays brought on by financial crunches.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs