Abstract
US merchant industrial gas demand to reach 4.3 trillion cubic feet by 2013
Total industrial gas demand in the US, including significant captive
production of hydrogen by the petroleum refining industry and other captive
gases, is forecast to increase 4.6 percent annually to 7.5 trillion cubic feet
in 2013, valued at $23.5 billion. The merchant market in 2013 will total 3.2
trillion cubic feet, valued at $16.2 billion. Hydrogen, including captive
demand, is the mostconsumed industrial gas, massive quantities of which will
be required to refine crude oil into clean-burning fuels. Nitrogen and oxygen
will follow as volume leaders, with 15 percent and 10 percent shares in 2013,
respectively. The chemical and metal processing industries account for most
oxygen demand and, with the addition of the oil and gas sector, for most
nitrogen. Carbon dioxide demand, also a high-volume gas, will comprise 4
percent of total volume in 2013. Argon, helium and acetylene are low volume,
high value gases, demand for which will be dominated by the metal processing
and chemical processing industries. The helium market has experienced some
supply and demand imbalance because of production disruptions in certain
regions of the world.
Oil refiners to drive growth
The petroleum and natural gas industry is by far the largest market for
industrial gases in the US, and will account for 69 percent of total
consumption by volume in 2013. Demand for hydrogen by the petroleum refining
industry represents the largest growth opportunity for industrial gas
suppliers in the US for the coming decade. Refiners are mandated to produce
cleaner-burning fuels from increasingly impure crude oil, a process requiring
massive amounts of hydrogen. Future increases in hydrogen demand will come
primarily from merchant suppliers, whose share of hydrogen demand in this
application will jump from 23 percent in 2008 to 35 percent (1.7 trillion
cubic feet) of the total (5.3 trillion cubic feet) in 2013. The oil and gas
production segment, representing 4 percent by volume of the entire oil and gas
sector, will grow 4.3 percent annually through 2013 to 210 billion cubic feet,
due primarily to the increased use of nitrogen and carbon dioxide for enhanced
oil recovery projects.
The chemical processing industry is the second largest consumer of industrial
gases in the US and will account for 11 percent of the market in 2013,
primarily for nitrogen, oxygen and hydrogen. Similarly, the metals processing
industry is the third largest industrial gas consumer, which will require 8
percent of industrial gases consumed in 2013, primarily oxygen and argon. The
electronics, food and beverage, and healthcare industries combined will
account for 5 percent of industrial gases consumed by volume in 2013.
Study coverage
This new Freedonia industry study, Industrial Gases presents historical demand
data for the years 1998, 2003 and 2008 plus forecasts for 2013 and 2018 by
type and market. The study also considers market environment factors,
evaluates company market share and profiles industry competitors.
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