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Motor and drive prices fall in European oil and gas market
Sales of electric motors and drives to the European oil and gas sector were worth $908.7m in 2012, and will rise to $1,152m by 2017, according to a new report from Frost & Sullivan.
It says that sales are being driven by escalating energy costs and the exploration of new oil and gas fields. Almost 80% of the revenues come from sales of motors, although the drives market is expanding faster.
According to F&S, because many motors and drives products from different suppliers “have more or less the same characteristics and functions”, oil and gas companies are opting for the most cost-effective options. “Suppliers are responding to this trend by reducing prices to remain competitive, thus lowering market revenues,” the analyst reports.
The lack of financial resources due to the recent economic slowdown has compelled oil and gas companies in Europe to temporarily shelve some projects, shrinking the potential demand for power conversion systems, F&S adds.
