A few weeks ago, energy supermajor BP made a US$5 million investment in Belmont Technology, a Houston-based artificial intelligence (AI) start-up. The amount is small, but the potential is big. Phrases like AI, machine learning, cognitive computing and neural networks may still be lesser known in the energy industry, but they are about to get more important. A lot more important.
In the investment in Belmont Technology, BP is hoping to apply its AI cloud-based geoscience platform for more accurate lifecycle projections in exploration and reservoir modelling. Skills and analysis that used to be crunched by brute force or manually onsite are now taken to the cloud the power of new server technology and major advances in computing. By feeding historical data on geology, geophysics, reservoir and assets, the AI can throw a bombardment of computing power at the data to map it in new ways, identifying connections and trends that might miss the human eye of an analyst. Reacting to real-time data, the dynamic nature of AI technology like this allows for a 90% time reduction in data collection, interpretation and simulation.
It isn’t the only AI venture that BP is in. The British firm already has a tie-up with start-up Beyond Limits, using software used to model deep space exploration missions to refine its economic models for reservoir development, crude oil refining and fuel distributions. And it certainly isn’t the only supermajor in the area. Shell has its own AI and machine learning department in-house, tackling issues as varied as equipment failure to electric vehicle charging optimisation. Total is following in those footsteps, partnering with Tata Consultancy to build a digital innovation centre to explore AI, automation and agile methodology technology. Chevron and ExxonMobil have looked outward and building partnerships. Chevron has a 7-year deal with Microsoft to use Azure to accelerate its analytics and Internet of Things capabilities, while ExxonMobil has also partnered with Microsoft to boost its cloud technology in the Permian – aiming to improve capital efficiency and support output growth of 50,000 b/d by 2025.
The trend isn’t just limited to the supermajors. All across the entire value chain of the oil industry, players big and small are embracing digitisation. Last year, industrial specialist Rockwell Automation and services firm Schlumberger formed a joint venture called Sensia, a firm focused on ‘selling equipment and services to advance digital technology and automation in the oilfield’. In a nutshell, Sensia is promising a future where drilling rigs can run on automated schedules, oilfield equipment can communicate between themselves and machinery can assess when maintenance is required. It is making drilling for oil smarter, cheaper and more efficient with less labour. All across the world, data science-focused start-ups like VROC AI and Element AI are popping up – leveraging neural networks and artificial intelligence technology to offer novel and innovative predictive solutions to the oil industry, from more accurate reservoir management to remapping entire geological formations.
Google, Amazon and Microsoft are the leaders in large-scale machine learning, backed by their vast cloud servers – which is already powering operations at supermajors and state oil firms like Equinor and Petronas. But innovation doesn’t just lie in the very big, which is why BP’s investment into Belmont Technology is important. Belmont Technology today could be the Amazon Web Services Oil & Gas division of tomorrow. By 2035, consultancy McKinsey estimates that data analytics and robotics could save the energy industry some US$290-390 billion in annual productivity. For an industry so sensitive to costs, that’s a tantalising dream and the reason to invest now.
Infographic: Recent Big Data moves by Big Oil
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Headline crude prices for the week beginning 2 December 2019 – Brent: US$61/b; WTI: US$55/b
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The Global Small-Scale LNG Market is projected to grow from 30.8 MTPA in 2016 to 48.3 MTPA by 2022, at a CAGR of 6.7% between 2017 and 2022. The small-scale LNG market across the globe is driven by their increasing LNG demand from remote locations by applications, such as industrial & power, and the ability to transport LNG over long distances without the need for heavy investment such as pipelines. By terminal type, regasification terminal is expected to grow at a highest CAGR between 2017 and 2022. The increasing demand for LNG from the remote locations and global commoditization of LNG are some of the major factors that are driving the demand for small-scale LNG in this segment.
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The Linde Group (Germany), Wärtsilä (Finland), Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie (France), among others are the leading companies operating in the small-scale LNG market. These companies are expected to account for significant shares of the small-scale LNG market in the near future.
Critical questions the report answers:
Growth Drivers are :
Energy cost advantage of LNG over alternate energy sources for end-users
Heavy duty transport companies save approximately 30% on fuel costs on LNG-fueled trucks, compared to diesel fueled trucks, and produce 30% lower emissions. Air pollution from diesel engines is one of the biggest concerns, especially in areas that struggle to meet air-quality standards. On the other hand, natural gas causes complete combustion and fewer emissions than diesel. It is estimated that increasing environmental concerns from the utilization of diesel vehicles is likely to increase the adoption of green fuel technologies such as natural gas. In the case of electric power generation, natural gas engines below 150 KW are more cost effective than oil fueled engines. Fuel cost is one of the major cost for road transportation, which is strongly subject to excise taxation. Typically, an LNG-fueled Volvo FM truck can travel up to 600 km with LNG. With an additional 150 litres of diesel, it can travel up to 1,000 km without refuelling. Thus, reducing the cost of travel. With additional LNG liquefaction capacity expected to come online in the next few years, an oversupply of LNG is expected, which will drive the price of LNG further lower. Considering all these factors, both developed and developing countries are undertaking feasibility studies to recognize the techno-economics of shifting their economies from diesel to natural gas. Therefore, the cheap price of small-scla LNG over others alterantive fuels will drive the growth during the forecast period.
Small-scale LNG terminals are regarded as facilities, including liquefaction and regasification terminals, with a capacity of less than 1 million tons per annum (MTPA) within the scope of this study. It includes the LNG produced from small-scale liquefaction terminals and regasified at small-scale regasification terminals for catering to applications such as LNG-fueled heavy-duty transport, LNG-fueled ships, and industrial & power generation.
North America small-scale LNG market is projected to grow at the highest CAGR during the forecast period.
The North America small-scale LNG market is projected to grow at the highest CAGR during the forecast period. In North America, most of the small-scale LNG demand in industrial & power applications is met through peak shaving facilities. The peak shaving facilities are used to meet adequate supply of LNG to address the peak demand. In 2015, there were more than 100 peak shaving facilities in the U.S., among which one-half of the peak shaving facilities were located in the Northeast, while a quarter of them were located in the Midwest. Currently, the U.S. has among the highest number of peak shaving plants. However, less than 10% of them are available for any other use due to the current electricity demand. The commissioning of small-scale liquefaction plants can expand the peak shaving capacities in the region.
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The report "Cryogenic Tanks Market by Raw Material (Steel, Nickel Alloy), Cryogenic Liquid (Liquid Nitrogen, LNG), Application (Storage, Transportation), End-use Industry (Metal Processing, Energy Generation, Electronics), and Region - Global Forecast to 2024" The global cryogenic tanks market size is projected to grow from USD 6.2 billion in 2019 and expected to reach USD 8.1 billion by 2024, at a CAGR of 5.5%.
Browse 121 market data Tables and 36 Figures spread through 147 Pages and in-depth TOC on "Cryogenic Tanks Market by Raw Material (Steel, Nickel Alloy), Cryogenic Liquid (Liquid Nitrogen, LNG), Application (Storage, Transportation), End-use Industry (Metal Processing, Energy Generation, Electronics), and Region - Global Forecast to 2024"
View detailed Table of Content here - https://www.marketsandmarkets.com/Market-Reports/cryogenic-tanks-market-26811967.html
The global industry for cryogenic tanks is driven primarily by the increasing demand for LNG. An increase in infrastructure spending, space applications for cryogenic technologies, and cryogenic energy storage systems represent promising growth opportunities for the market. Improving healthcare services in the developing economies is boosting the cryogenic tanks market.
The steel segment is estimated to lead the cryogenic tanks market, by raw material, during the forecast period.
Steel is primarily used in the manufacturing of cryogenic tanks. Most of the materials are ductile at room temperature and abruptly lose their ductility when a given threshold is exceeded. They then become brittle even at relatively low temperatures. The austenitic stainless steel is majorly used for working in the low-temperature range. Carbon and alloy grade steels used for low-temperature service are required to provide high strength, ductility, and toughness in vehicles, vessels, and structures that must be used at –49°F and lower. These factors are contributing to the growth in demand for steel for the manufacturing of cryogenic tanks.
Liquid Nitrogen is the fastest-growing cryogenic liquid segment of the cryogenic tanks market.
Liquid nitrogen is primarily used in metal processing, food & beverage, electronics, and healthcare industries. The steel manufacturing industry is one of the major consumers of nitrogen. Nitrogen is used in the food & beverage industry for food preservation and packaging applications. The use of liquid nitrogen in this industry enables cost savings during storage and transportation and improves food quality. Liquid nitrogen is used to cool normally soft or heat-sensitive materials, such as plastics, tires, and certain metals. The increasing demand for liquid nitrogen from metal processing, food, and medical industries is expected to drive the market in this segment.
Metal processing is expected to lead the end-use industry segment for cryogenic tanks market during the forecast period.
Metal-processing industry was the largest end-use industry for the cryogenic tanks industry. Cryogenic tanks are increasingly being used in the metal processing industry, especially steel the industry. Huge quantities of nitrogen and other industrial gases are used during the steel manufacturing process. Nitrogen is also known to be largest consumed gas in the industry. It is used as a high-pressure gas for laser cutting of steel and metal. The inert properties of nitrogen facilitates its use as a blanketing gas. Some gases, including hydrogen and oxygen, are also used in the metal processing industry. Cryogenic tanks are commonly used in the storage and transportation of these gases in manufacturing plants, which drives the market demand.
High economic growth rate and growing metal processing and energy generation industries in China, Australia, and India are projected to lead the cryogenic tanks market in APAC during the forecast period.
APAC is the fastest-growing market, in terms of both production and demand. Higher domestic demand, easy availability of raw materials, and low-cost labor make APAC the most preferred destination for the manufacturers of cryogenic tanks. The cryogenic tanks market in India, China, and Australia is expected to witness significant growth during the forecast period. The market is primarily driven by the demand from the energy & power sector. APAC is emerging as a leading consumer of cryogenic tanks, owing to the increasing demand from domestic as well as international markets.
The key players in cryogenic tanks market are Chart Industries (US), Cryofab (US), INOX India (India), Linde PLC (UK), Air Products (US), Cryolor (France), Air Water (Japan), Wessington Cryogenics (UK), FIBA Technologies (US), and ISISAN (Turkey). These players have established a strong foothold in the market by adopting strategies, such as expansion, new product launch, and merger & acquisition.
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