Flowmeters vital to oil and gas industry recovery
A 2021 research study from Flow Research, entitled ‘Flowmeters in the Oil and Gas Industry’, has found that worldwide revenues for all flowmeters sold to the oil and gas industry in 2019 amounted to US$1640 million and forecasts a solid compound annual growth rate (CAGR) of 2.6% over the next five years, for a total annual revenue exceeding US$1860 million in 2024.
The oil and gas industry is one of the largest industries for flowmeters and the flowmeter market tends to parallel its ups and downs. Both the flowmeter market — as well as oil and gas prices — had a very strong year in 2018. Though oil and gas prices declined in 2019, they were strong enough to help support a modest increase in flowmeter sales in 2019. However, sales of all types of flowmeters dropped in 2020 due to a decline in oil prices, the effects of the COVID-19 pandemic, and a decline in demand for energy products. In 2021, both the oil and gas and the flowmeter markets are recovering and Flow Research sees this trend continuing into 2022 and through 2024.
Differential pressure (DP) flowmeters account for about one-third of flowmeter revenues sold into the oil and gas industry. DP flowmeters consist of DP transmitters together with primary elements, such as orifice plates, Pitot tubes, Venturis, flow nozzles, and other elements. Though DP transmitters and primary elements are quantified separately in the study, they together make up the differential pressure flowmeter market. DP flowmeters are deeply entrenched in the oil and gas industry and have the advantage of a large installed base.