Released April 22, 2019 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's North American Industrial Project Spending Index, which measures the value of active projects in the pipeline for the year, registered a 15.56% increase in March compared with the same month in 2018. The active project value was $645.98 billion, up $86.99 billion from the total in March 2018.
The Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year, in order to get a measure of growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month. The March spending index registered gains in seven of the 12 industries tracked by Industrial Info.
Click on the image at right to view the March project spending index by market region.
According to the U.S. Federal Reserve's latest Beige Book, a summary of current economic conditions, economic activity expanded at a slight-to-moderate pace in March and early April. Reports on manufacturing activity were favorable, although contacts in many of the 12 Federal Reserve districts noted trade-related uncertainty.
The Institute for Supply Management (ISM) reported that the overall economy grew for the 119th consecutive month in March.
Onshore Oil & Gas Production saw the largest year-over-year total investment value (TIV) gain in March among the 12 industries tracked by Industrial Info. Active oil and gas production project spending amounted to $100.56 billion last month, up 51.06% from $66.57 billion in March 2018. Recent growth in U.S. crude oil production has been driven by the development of tight oil resources, primarily in the Permian Basin in western Texas and eastern New Mexico, according to the U.S. Energy Information Administration (EIA).
Three major tight oil plays in the Permian Basin - the Spraberry, Bone Spring and Wolfcamp - accounted for 41% of U.S. tight oil production in 2018. In the EIA's Annual Energy Outlook 2019 Reference case, approximately half of cumulative tight oil production through 2050 is expected to come from these three plays. The Bakken and Eagle Ford plays are expected to be major contributors to U.S. tight oil supply through 2050, accounting for 19% and 17% of cumulative tight oil production, respectively.
The Metal & Minerals Industry saw the largest year-over-year decrease in spending last month. Active spending activity in the industry amounted to $45.52 billion, down 19.4% from $56.58 billion in March 2018. Last month was marked by the announcement of a Nevada-centered gold mining joint venture between Barrick Gold Corporation (NYSE:GOLD) (Toronto, Ontario) and Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado), who said they will create the world's single largest gold producer. For more information, see March 18, 2019, article - Barrick, Newmont Forge Ahead with Nevada Venture to Create World's Largest Gold Producer.
However, Industrial Info's North American Construction Starts Index amounted to 3,695 projects worth $61.95 billion for March, down from 3,848 projects valued more than $65.97 billion a year earlier. The index measures the amount of project activity that has been funded and started construction this year across 12 industries in the U.S., Canada and Mexico. The total value of the construction starts fell in eight of the 12 industries from a year earlier.
Click the image at right for a graph showing March North American construction starts.
Construction starts in the Oil & Gas Pipeline Industry amounted to $11.86 billion, up 162% from $4.52 billion in construction starts seen a year earlier. President Donald Trump has signed two executive orders intended to spur the development of U.S. energy infrastructure. One order directs the U.S. Environmental Protection Agency to review its existing guidance on Section 401 of the Clean Water Act (CWA) and affects permissions needed for international pipelines. For more information, see April 12, 2019, article - How Much Will Trump's Executive Orders Affect Energy Projects?
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year, in order to get a measure of growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month. The March spending index registered gains in seven of the 12 industries tracked by Industrial Info.
According to the U.S. Federal Reserve's latest Beige Book, a summary of current economic conditions, economic activity expanded at a slight-to-moderate pace in March and early April. Reports on manufacturing activity were favorable, although contacts in many of the 12 Federal Reserve districts noted trade-related uncertainty.
The Institute for Supply Management (ISM) reported that the overall economy grew for the 119th consecutive month in March.
Onshore Oil & Gas Production saw the largest year-over-year total investment value (TIV) gain in March among the 12 industries tracked by Industrial Info. Active oil and gas production project spending amounted to $100.56 billion last month, up 51.06% from $66.57 billion in March 2018. Recent growth in U.S. crude oil production has been driven by the development of tight oil resources, primarily in the Permian Basin in western Texas and eastern New Mexico, according to the U.S. Energy Information Administration (EIA).
Three major tight oil plays in the Permian Basin - the Spraberry, Bone Spring and Wolfcamp - accounted for 41% of U.S. tight oil production in 2018. In the EIA's Annual Energy Outlook 2019 Reference case, approximately half of cumulative tight oil production through 2050 is expected to come from these three plays. The Bakken and Eagle Ford plays are expected to be major contributors to U.S. tight oil supply through 2050, accounting for 19% and 17% of cumulative tight oil production, respectively.
The Metal & Minerals Industry saw the largest year-over-year decrease in spending last month. Active spending activity in the industry amounted to $45.52 billion, down 19.4% from $56.58 billion in March 2018. Last month was marked by the announcement of a Nevada-centered gold mining joint venture between Barrick Gold Corporation (NYSE:GOLD) (Toronto, Ontario) and Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado), who said they will create the world's single largest gold producer. For more information, see March 18, 2019, article - Barrick, Newmont Forge Ahead with Nevada Venture to Create World's Largest Gold Producer.
However, Industrial Info's North American Construction Starts Index amounted to 3,695 projects worth $61.95 billion for March, down from 3,848 projects valued more than $65.97 billion a year earlier. The index measures the amount of project activity that has been funded and started construction this year across 12 industries in the U.S., Canada and Mexico. The total value of the construction starts fell in eight of the 12 industries from a year earlier.
Construction starts in the Oil & Gas Pipeline Industry amounted to $11.86 billion, up 162% from $4.52 billion in construction starts seen a year earlier. President Donald Trump has signed two executive orders intended to spur the development of U.S. energy infrastructure. One order directs the U.S. Environmental Protection Agency to review its existing guidance on Section 401 of the Clean Water Act (CWA) and affects permissions needed for international pipelines. For more information, see April 12, 2019, article - How Much Will Trump's Executive Orders Affect Energy Projects?
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
