JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 34

oil & gas

Is the oil and gas market a bust?

The global oil and gas industry, one of the largest industries worldwide, is undergoing a turbulent situation. Crude oil has been the
worst performing commodity in recent years, causing a terrible time
for energy investors.

By
Dr. Sanjay MazuMDar
CEO
LuCintEL

T

he crude oil price plunged by more
than 70% since July 2014, from
around $100/barrel to $30/barrel
in January 2016, leading to a sharp cut in
investments in exploration and production
activities during the past two years (figure
1). Several large oil and natural gas projects
worldwide have been put on hold since
prices started coming down. In 2015, 42
North American oil and gas companies
filed for bankruptcy, and the total debt of
these companies stood at around $18 billion, which resulted in the loss of 250,000
jobs.

of supply for both oil and natural gas, with
more than 30% of European crude and
natural gas supplies coming from Russia
in 2014. This creates political anxiety and
Europe is willing to buy US gas even if it is
more expensive.

A promising option
Composite materials usage in the oil and
gas industry is still in the nascent stage.
Composites are emerging as one of the
promising options for the oil and gas market, especially for deep drilling and offshore
applications. Composites are being used in
a wide variety of applications such as pipes,

drilling risers, umbilical rods, frac plugs,
frac balls, tanks, sucker rods, gratings, and
accumulators. As more applications are
emerging in oil and gas exploration, the future of the composite industry looks good
since end users are looking for products
with high strength, low weight, the ability
to withstand high pressure conditions, and
higher corrosion resistance.
In 2015, the total worldwide composite
product shipments in the oil and gas industry reached a value of US $1.3 billion. The
market is expected to grow to $1.7 billion
with a CAGR of 4% until 2021, as can be

A period of transformative change
The most important thing is that the global
oil and gas industry is about to enter a period of transformative change. Companies
that want to have a successful and longterm growth need to make the right strategic decisions during the next few years. The
good news is that the US government lifted
the 40-year-old ban on crude oil exports on
18 December 2015. This move will expand
the market for the light crude oil pumped
out of America's shale deposits. The US oil
and gas producers are preparing to enter
the European market in a bigger manner.
Europe is dependent on Russia as a source

Fig. 1: Crude oil price trend from January 2010 to January 2016 (Source: EIA)

34 jec composites magazine / No104 April - May 2016



Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016

Cover
Edito
Point of view: Thailand smiles at composites
Contents
COMPANY & BUSINESS
Agenda of Events
APPLICATIONS
Cycle
Multisectorial
Music
MARKET
Trend
Carbon
SPECIAL JEC AMERICAS 2016
Conferences
Awards
Oil & Gas
Redevelopment
Laboratory
RESEARCH & DEVELOPMENT
Self healing
Fibre placement
Microwave
TECHNOLOGY & INNOVATIONS
LFT
Intermediate products
Multimaterial
Manufacturing
Process
Index
In the world
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Cover
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 2
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Edito
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Point of view: Thailand smiles at composites
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 5
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Contents
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 7
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - COMPANY & BUSINESS
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 9
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Agenda of Events
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Ad1
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Ad2
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 11
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Cycle
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 13
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Multisectorial
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 15
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Music
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 17
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Trend
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 19
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 20
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 21
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Carbon
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 23
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 24
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 25
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Conferences
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 27
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 28
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Awards
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 30
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 31
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 32
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 33
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Oil & Gas
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 35
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Redevelopment
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 37
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Laboratory
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 39
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 40
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Self healing
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 42
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 43
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Fibre placement
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 45
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 46
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Microwave
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 48
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 49
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 50
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - LFT
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 52
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Intermediate products
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 54
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Multimaterial
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 56
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 57
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 58
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Manufacturing
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 60
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Process
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 62
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 63
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 64
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - Index
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - In the world
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 67
JEC COMPOSITES MAGAZINE - Issue #104 - April/May 2016 - 68
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