Gas turbines, used of oil and gas upstream, are in high demand as the power needs in the offshore platforms and for remote exploration. Gas turbines used for mechanical drive is will witness highest growth during, according to reportlinker.
By turbine size, the ‘1-20 MW’ turbine will likely remain the largest segment due to its wider application area but the turbine size ’20 MW and above’ will see the highest growth. High efficiency as compared to smaller turbines is driving growth of this segment, analysts noted.
High growth, high spend in Permian and Bakken Shale
North America is likely to witness the highest growth through 2024 due to growing investment in unconventional oil and gas facilities. The U.S. Energy Information Administration (EIA) forecasts that U.S. crude oil production will average 13.3 million barrels per day (b/d) in 2020, a 9% increase from 2019 production levels, and 13.7 million b/d in 2021, a 3% increase from 2020.
The Permian region, spanning across western Texas and eastern New Mexico, remains the most prolific crude oil production growth region in the United States. Favorable geology combined with technological improvements have, according to EIA analysts, contributed to the Permian region’s high returns on investment and years of remaining oil production growth potential.
Permian crude oil production is seen average 5.2 million b/d in 2020, an increase of 0.8 million b/d from 2019 production levels. For 2021, the Permian region will produce an average of 5.6 million b/d. The Bakken region in North Dakota, meanwhile, is singled out as second-largest growth area in 2020 and 2021, growing by about 0.1 million b/d in each year.
Analyst's U.S. crude oil production forecast is based on the West Texas Intermediate (WTI) price forecast in the January 2020 STEO, which rises from an average of $57 per barrel (b) in 2019 to an average of $59/b in 2020 and $62/b in 2021.