Oil and gas valve is widely used in oil and gas industry, gathering and process units. According to production requirement, the valves transported or blocked a variety of gas and liquid media to various containers and process equipment. Oil and gas valves can be divided into general and special valve. The general pipeline valve includes gate valve, ball valve, check valve, butterfly valve, safety valve and so on. Special valve includes slide valve and high temperature butterfly valve in catalytic cracking unit, four-way switch valve and coke blocking valve in delayed coking unit and so on. In addition, the control valve is also very important to device. Control valve working status directly relate to the DCS control system running. Once the control valves fail, the entire control system will not work.

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API Oil and Gas Valves

Oil and gas valve plays an important role in petroleum industry

The oil and gas valve mainly have the isolation equipment, cut off or connect the pipeline, prevent the reverse flow, adjust and throttle functions. These functions control the system running. The valves should have basic performance, such as sealing, adjust-ability, switch flexibility etc. For example, if the valves have poor sealing, it will cause environmental pollution and economic loss,  and toxic sulfur and natural gas leakage also cause personal injury and death.

Oil and gas valve play an important role in the development of petroleum industry. It is not only reflected in the control of the system, but also reflected in the construction and maintenance costs. In the flammable and explosive occasions, it will cause greater loss due to oil and gas valve failure. Oil and gas valve usually applied in the pipeline systems to control the flow rate, so it is always worked with API 5L Line Pipe products.

The status and trend of oil and gas valve

The domestic oil and gas valve manufacturing industry developed all over the country. China has already become one of the largest production and market demand countries in global. No matter in the device or technical level, the domestic valve industry exist large gap comparing with foreign valve technology. There are very few enterprises with independent research and development capabilities for high-end product. Oil and gas valve is a terminal actuator that control fluid movement in the pipe. Modern computer book, sensor technology, network and remote control technology applied to valve products In order to adapt the development of information technology.

Oil and gas pipeline industry development in worldwide

From the global energy structure, new energy developed fast. The fossil energy proportion in the global energy consumption structure continued to decline, but the natural oil and gas pipeline industry still grow faster. The amount of oil and gas pipeline projects in the world was about 3.8 thousand, total about 1.96 million kilometers. Of which the natural oil and gas pipeline was about 1.273 million kilometers, at 64.9% of total pipeline mileage. The global pipeline was mainly concentrated in North American, Europe, the Pacific, Russia and Central Asia, which at 43 %, 14%, 14 %, 15 % of total mileage. Since the oil and gas exploration investment decreased, related industries going into a depressed situation. The new oil and gas reserves has declined, and it stopped lots of oil and gas pipeline projects.

Oil and gas pipeline trend in global

The oil and gas pipeline industry turned to the worst situation. It influenced by kinds of factors, such as oil and gas price reduced, global economy recession etc. The global oil and gas pipeline construction has declined such as API 5L line pipe projects becoming less and less. In short, the investment in the global oil and gas pipeline construction will keep reducing year by year. On the other hand, The new pipeline projects will mainly focus on natural gas pipeline and submarine pipeline.

Influences to China oil and gas pipeline industry

The growth rate of China oil and gas market demand become slow, energy resources supply more flexible. Energy pipeline network gradually improved, the new pipeline constructions began to slow down.China released some policies and regulations to create a good market for oil and gas pipeline industry.

First, promote the regional oil and gas pipeline network.

Second, encourage the oil and gas industry, promote natural gas infrastructure construction. And expand the service scope of natural gas pipeline.

Third,  break the monopoly, absorb the investment capital from the third party. Create and change to embrace the market-oriented reformation. Update the skill of energy transportation services.

Active oil and gas drilling rig count in U.S.

More data shows that by the week of July 15, the total active oil and gas drilling rig count increased by 7 to 447. Compared with same period last year decreased 416.
In 2015, the active oil and gas drilling rig count in the United States decreased by 963. It’s the first annual decline since 2002. While the annual decline has reached the largest since 1988. In the five years from 2010 to 2014, the active drilling rig count in the United States average increased by 216 per year. It has hit a high position of 1609 rigs in October 2014, but it has been reduced more than three quarters. While the crude oil prices fell sharply in the 4th quarter of 2014. After reaching to monthly top of 112 USD/barrel (bbl), and 105 USD/barrel at June, fell to 62 USD/barrel. According Brent and West Texas crude oil price. Since then the related industry reduce accordingly, including the oil drilling rigs, the oil and gas line pipes, line pipe steel plates and sheets.

U.S. active oil drilling rig count increased due to the crude oil demand increased.

In addition, Hughes Beck said in the report, the U.S. active natural gas drilling rig count increased by 1 to 89 at the same week. Because Hughes Beck’s data show that the active natural gas drilling count consecutive increased by three weeks. The oil price rise reduced slightly, although this will help the line pipe markets and line pipe steel price.

CNBC pointed that due to the United States and China’s crude oil demand outlook boosted. The oil price continually achieved good performance this week. At the same time, the U.S. oil and gas drilling rig count has also recorded an increase for the third consecutive week. This might make analysts expected the total oil drilling count has bottomed out in the United States, and the crude oil will be improved at the beginning of next year.

Oil drilling rigs have largest increase since 2011.

Financial blog Zerohedge pointed out the U.S. crude oil and gas drilling rigs increased 6 to 357, as the sixth week increased over the past seven weeks( a total number of 41 rigs), the maximum absolute added value since May 2014. The U.S. crude oil drilling rigs count leave out from the low position, and it increased more than 10% currently. As the largest increase since December 2011. Experts believe with the increased oil drilling rigs, more of the line pipe steel will be used and this will help the line pipe price increase for a moment.

As of Beijing time 1:38, the U.S. WTI crude oil futures reported $45.78 / Barrel, and oil futures prices reported $47.49 / Barrel.

Application of oil and gas pipeline valves in industry

The global demand and mining for crude oil remain stable. It will play a strong supporting role in the growth of oil and gas valves. The continued growth in oil and gas production and demand will help to maintain pipeline infrastructure investments at high level. The construction of long distance transport pipeline will directly promote the growth of the petroleum industry valve market.

According to long term development of oil and gas valves market, the API 6D valve demand for oil and natural gas development and transportation will increase from $ 8.2 billion in 2012 to $ 14 billion in 2015.

How is the oil and gas valves applied in China

The domestic energy supply and demand located in far different area in China. Oil and gas resources are mainly located in northeast, north, and northwest of China. The Tarim, Qaidam, Shanxi – Gansu – Ningxia and Sichuan basins contain rich oil and natural gas resources, around more than 80 % of land natural oil and gas resources in China. However, the oil and gas demand is mainly located in economy developed areas, which at southeast coast. So the pipeline continued to transport oil and natural gas from north area to southeast coastal areas. The oil and gas valves demand for energy industry keep stable growth rate .

The development trend of oil and gas valves

LNG liquefaction station, GTL etc oil and gas projects need lots of cryogenic valves in API 6D. This is good prospect for API valve manufacturer. Pipeline ball valve can apply to natural gas transportation pipeline, also very important to monitoring long distance pipeline. The oil and gas transportation project is a large potential market for API 6D valve.

The hydrogenation cracking unit, mixed fuel device, delayed coking have new requirements for oil and gas valve market, and related technology over next few years. These systems have existed many years, but the end users have more requirements, they need the device to have a longer life, and the related valves, oil and gas valves could meet higher standard.