Greater political acceptance of shale gas exploration and the growing need among European countries to be self-sufficient in terms of energy is expected to result in growth for the pumps market. Pump manufacturers, though, may not be able to capitalise on this potential as concerns on the environmental impact of fracking are likely to curb shale gas exploration activities by oil and gas companies.
These are the findings of new analysis from Frost & Sullivan. Its report:?‘Strategic Analysis of the Pumps Market in the European Shale Gas Industry’, reveals that the market earned revenues of $35.3 million in 2012, and is expected to reach $47.7 million in 2017.
While the United Kingdom, Ukraine and Poland are at the forefront of shale gas production in order to meet energy requirements and reduce dependency on Russian gas imports, the industry will be affected by uncertain policies of local governments in other countries. For instance, France and the Netherlands have banned shale gas exploration.
Moreover, although Germany and the UK have issued permits, large-scale exploration is yet to begin since the feasibility of commercial shale gas production in Europe remains doubtful.
Nevertheless, pump vendors will continue to find growth pockets as oil and gas companies such as Royal Dutch Shell continue exploration activities during the forecast period.
“In fact, proponents of the shale gas industry in Europe predict that increased exploration would be beneficial to countries affected by the slowdown, as it is expected to attract investments from major oil and gas companies…” said research analyst Niranjan Paul.