Gulf Coast Spending Continues to Rise, but Big Projects Under Increasing Scrutiny, an Industrial Info News Alert
SUGAR LAND, TX--(Marketwired - Nov 2, 2015) - Researched by Industrial Info Resources (Sugar Land, Texas) -- The U.S. Gulf Coast remains one of the brightest spots in the nation for industrial activity. But as low oil and gas prices cause companies to rein in capital spending, Industrial Info is seeing a growing number of projects in the region being re-evaluated and either cancelled or pushed out to a later construction start date.
This issue will be addressed at Industrial Info's upcoming Market Outlook & Networking Event, held November 5, in Baton Rouge, Louisiana. As the old saying goes, "The bigger they are, the harder they fall." As global LNG spot prices plummet and a new wave of production capacity is brought online, the plans that are most at risk for delays or cancellation are the large, multibillion-dollar megaprojects, particularly many of the liquefied natural gas (LNG) projects that have been proposed for the area.
Industrial Info refers to projects that have been cancelled, placed on hold or pushed out to a later calendar year as "project fallout." While in the past, project fallout in the Gulf Coast region has been lower than the rest of the U.S., Industrial Info has seen an acceleration in fallout following the plunge in crude oil, natural gas and natural gas liquids prices.
In January 2015, there were 1,046 major projects valued at $183.8 billion that were scheduled for construction kick-off in 2015 and 2016. At the end of August, that number had been revised to 867 projects valued at $102.8 billion, resulting in a fallout rate of 44% based on total investment value (TIV). Most of the impact has come not from cancellations, but from adjustments in project schedules in which the construction date has been pushed out to 2017 or beyond.
Despite these project delays, some industries are thriving. Low natural gas prices are causing an unprecedented build-out in the Chemical Processing Industry, which is taking advantage of cheap feedstock. While U.S. crude oil production has begun to decline, the country continues to produce historically high amounts of oil, resulting in the construction of a large number of bulk liquids terminals in the region.
Join Industrial Info on November 5 in Baton Rouge as we discuss the North American marketplace and what we expect in 2016. After a panel discussion by our industry experts, we will be providing complimentary drinks and hors d'oeuvres, allowing you valuable time to meet and discuss the presentation with our experts and your industry peers. Don't miss this fantastic opportunity! RSVP today!
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.
(November 2, 2015 - 6:30 AM EST)
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