In the September 2019 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) revised its forecast for 2019 global liquid fuels consumption down to 100.8 million barrels per day (b/d), 0.1 million b/d lower than the August STEO and 0.7 million b/d lower than the January STEO. EIA attributes the lower forecast 2019 global oil consumption to a downward revision of 0.18 million b/d in the United States and Europe, in addition to downward revisions to forecast consumption in the Middle East and in India (Figure 1). If the September forecast is realized, 2019 would be the first year that global liquid fuels consumption grows less than 1.0 million b/d since 2011.
The latest STEO forecast for total global consumption growth reflects lower expected economic growth rates for 2019 compared with 2018. Based on forecasts from Oxford Economics, EIA has lowered the STEO forecast global oil-weighted gross domestic product (GDP) growth projection every month in 2019. In the January STEO, EIA forecast a 2019 year-over-year GDP growth rate of 2.9%, but in the September STEO, EIA forecast a 2.1% growth rate.
The reduced GDP forecasts through the year coincided with declining economic indicators, such as the manufacturing Purchasing Managers’ Index (PMI), a survey of purchasing managers’ current and expected business conditions. A PMI higher than 50 indicates an expansion of activity and lower than 50 indicates a contraction. PMI results for several countries in August signaled a contraction in manufacturing activity (Figure 2). PMI reports were mixed for the United States in August. The IHS Markit PMI showed slight expansion, although it was at the lowest level since September 2009, while the U.S. Institute for Supply Management’s PMI showed contraction for the first time since 2016. The manufacturing PMI for Europe’s largest economy, Germany, has been lower than 50 since January, and the PMI for the broader Eurozone has been lower than 50 since February. Among 37 countries that publish manufacturing PMI surveys, the median PMI declined to 49.1 in August.
Economic activity directly affects liquid fuels consumption. EIA revised down its 2019 forecast for U.S. total liquid fuels consumption by 0.2 million b/d from the January STEO to 20.6 million b/d in the September STEO. Consumption of motor gasoline and distillate together comprise 0.1 million b/d of the decline; forecast gasoline consumption decreased by 30,000 b/d, and forecast distillate consumption decreased by 70,000 b/d. In the September STEO, EIA forecasts that vehicle miles traveled in the United States will increase by 1% from 2018 to 8.9 million miles per day in 2019, lower than the January STEO forecast of 9.0 million miles per day. The lower forecast vehicle miles traveled contributes to the decline in forecast gasoline consumption. Distillate consumption is closely linked with economic activity, and slower growth rates in several sectors of the economy are contributing to lower distillate consumption than previously forecast. Because of the downward revisions in the consumption forecast for both gasoline and distillate, in the September STEO, EIA forecasts consumption of both fuels to be lower than 2018 levels.
The slower economic growth that has affected U.S. liquid fuels consumption is also contributing to lower-than-expected consumption in other countries. EIA estimates that European liquid fuels consumption totaled 14.7 million b/d for the first half of 2019, 0.2 million b/d lower than the forecast from the January STEO, partially as a result of a warmer-than-normal winter in the first quarter. In the Middle East, sanctions on the Iranian oil sector have contributed to significantly lower economic activity and domestic oil consumption. In addition, in Saudi Arabia, the lowest level of crude oil consumption for power generation since at least 2009 is limiting oil consumption growth in the Middle East. In Asia, EIA revised Indian liquid fuels consumption growth for 2019 down by 0.1 million b/d from the January STEO to the September STEO because slower economic growth contributed to lower first-half 2019 liquid fuels consumption than forecast.
In its September STEO, EIA forecasts global liquid fuels supply and demand will be relatively balanced in the third quarter of 2019, followed by a 0.4 million b/d stock build in the fourth quarter (Figure 3). EIA forecasts that 2019 global liquid fuels stocks will increase by an average of 0.2 million b/d, partially as a result of the lower liquid fuels consumption growth.
U.S. average regular gasoline and diesel prices fall
The U.S. average regular gasoline retail price fell more than 1 cent from the previous week to $2.55 per gallon on September 9, 28 cents lower than the same time last year. The Midwest price fell nearly 3 cents to $2.44 per gallon, and the East Coast price fell nearly 2 cents to $2.46 per gallon. The Gulf Coast price increased 1 cent to $2.24 per gallon, and the West Coast and Rocky Mountain prices each rose nearly 1 cent to $3.25 per gallon and $2.63 per gallon, respectively.
The U.S. average diesel fuel price fell nearly 1 cent to $2.97 per gallon on September 9, 29 cents lower than a year ago. The Midwest price fell 1 cent to $2.86 per gallon, and the West Coast and East Coast prices each fell nearly 1 cent to $3.55 per gallon and $2.99 per gallon, respectively. The Rocky Mountain and Gulf Coast prices each rose nearly 1 cent to $2.93 per gallon and $2.75 per gallon, respectively.
Propane/propylene inventories rise
U.S. propane/propylene stocks increased by 0.7 million barrels last week to 97.8 million barrels as of September 6, 2019, 12.1 million barrels (14.1%) greater than the five-year (2014-2018) average inventory levels for this same time of year. Gulf Coast inventories increased by 0.5 million barrels, and Midwest and Rocky Mountain/West Coast inventories each increased by 0.2 million barrels. East Coast inventories decreased by 0.2 million barrels. Propylene non-fuel-use inventories represented 4.2% of total propane/propylene inventories.
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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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