Beyond Omniseal® Blog

Since 2014, the global oil and gas industry has been hit by downturns, leading to profound changes in the value chain for parts in oil and gas exploration—from end users, EPCs, service companies to OEMs, and finally components suppliers. Rystad Energy projects that about 800 of the 3,000 oil fields sanctioned from 2010 through 2014 have not been able to generate much value for E&P companies, due to large expenditures on large-scale, multi-year projects before gas and oil prices decreased. With the pivot to lower development costs from 2015 onwards, it forecasts that projects sanctioned over the last four years are in a much better financial state. With a key component in valve performance being seals, selecting a supplier with cost-effective and reliable sealing solutions is crucial to guaranteeing valve performance.

Natural gas production surged in 2018 (up over 5% and two times the historical trend), due in large part by growth in the U.S, as the top producer of petroleum in the world, followed by Russia and Saudi Arabia. Production and trade are on the rise with India being considered an emerging superpower, with its economy growing more quickly than, and its population expected to surpass, China in 2024, according to The United Nations.

India’s growing leadership position today is a contrast from the country’s economic situation in 2013. Rallying the country, Narendra Modi, the prime minister of India, made innovation and advancement a priority and launched the galvanizing “Make in India” initiative in 2014 to bring it and its supporters together.  Omniseal Solutions is also supporting with their new local Bangalore manufacturing site, precision seals and polymer parts, and design and application engineering expertise.