Tag Archives: the petroleum industry

Catching Up with the Petrochemical Industry

While heating oil, automobile fuel, and compressed gas may own a bigger share of the spotlight, the petrochemical sector remains an integral part of the petroleum industry. Refineries fabricate petrochemicals at extreme pressures and temperatures to create compounds that serve as a cornerstone for virtually innumerable products.

Oil, natural gas, coal, and other sources are the primary raw materials for petrochemicals, creating building block compounds that include Benzene, Butadiene, Ethylene, Propylene, Toluene, and Xylene. Final products from these chemicals include plastics, solvents, soaps, paints, drugs, flooring materials, electronic equipment, and many others.

Weathering the Storm

With a list of output like this, the continued success of the petrochemical industry would seem inevitable. And yet, petrochemical processing relies on the continued extraction and refinement of petroleum, an industry that has been taking a beating these days by a glut in supply and low prices.

The industry continues to move forward, however. In a meeting earlier this year, petrochemical officials expressed cautious optimism. Leaders from Phillips 66 and Total (based in Paris) stated that they were looking to expand their investments in petrochemical refineries in Texas and the Middle East, foreseeing the ultimate expansion of the petrochemical industry in spite of current difficulties in oil refining.

How Has the Industry Fared?

While not undergoing a boom, petrochemical production continues to give investors many reasons to be optimistic. The month of May saw gains in the entire U.S. chemical industry nudging upwards; what’s more, the abundant supply of natural gas from America’s shale rock deposits has created a cost-advantage for domestic producers, as well as opportunities for an increased export market.

The good news doesn’t stop there. Recent industry research has projected that the global natural gas liquids market is likely to double within the next eight years — due in part to the use of Ethane in worldwide petrochemical applications.  Petrochemical refining plants in Texas will not be left out, as North America is currently second only to the Middle East for market share in natural gas.

Follow Our Blog

Current signs seem positive for the petrochemical sector, but long-term success remains uncertain. At Southwest Process Controls, we will continue reporting on changes in the industry as we encounter them. Keep checking in with our blog for details on the latest trends; or, for questions about our high-quality fittings, locks, gauges, and valves, contact us directly.

Visit Us at the DUG Permian Basin Conference

The Permian Basin is an essential part of U.S. oil production and has been for nearly a century; however, recent spikes in supply have lowered oil prices significantly — challenging even the most stalwart and longstanding drilling companies.

How are producers navigating these difficult times? Find out at the DUG Permian Basin Conference and Exhibition, being held at the Fort Worth Convention Center from May 23rd through the 25th. The DUG brand devotes itself to developing unconventional petroleum resources of all types and proudly sponsors some of the world’s largest events and expos.

DUG conference participants number in the thousands, presenting unparalleled educational, growth, and networking opportunities. Industry leaders will address how petroleum’s top producers continue to invest in the Permian Basin, positioning themselves to profit during difficult times.

Key Topics Explored by the Experts

The industry’s most lauded authorities will address vital topics that cover all plays of the Permian Basin, including Wolfcamp, Spraberry, Bone Spring, Leonard, Avalon, and Yeso. Specific panels, seminars, and lectures will address the following:

• Maximizing Efficiency — With oil prices remaining low, producers need to employ the most efficient drilling methods. Successful operators will discuss their techniques of drilling stacked and staggered wells, resulting in excellent exploration and production efficiency.
• Permian Basin: Now and in the Future — How are current production levels faring and what does the future hold? Active producers and leading analysts discuss the current state of the basin, also providing expert forecasts for short term and long term production.
• The Newest Technologies — Horizontal drilling and other efficient technologies are largely responsible for the basin’s recent boom. Explore how new, innovative methods continue to evolve and promise ways to provide increased oil production at lower costs.

Come Visit Us

Conference attendees come from nearly every sector of the petroleum industry, from E&P companies and pipeline operators to investors, attorneys, policymakers, and more. Southwest Process Controls will be there, too — you can find us exhibiting with Hy-Lok USA in booth 111.

We look forward to seeing you there and demonstrating how our fluid system control products assist in at every step of petroleum production. Don’t miss the opportunity to learn the most efficient and effective techniques for America’s largest oil-producing region. Visit us in person; or, for further information or a custom quote, contact us directly today.