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Impact of Changing US Administration on the Brownfield Projects

Impact of Changing US Administration on the Brownfield Projects

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Brownfield projects are usually carried out on already established project sites. The assignment could be as small as replacing the existing pump due to non performance or completion of lifecycle to expansion of the plant. The overall change into an existing plant is termed to be under the “brownfield project scope” which is broadly classified under modification, revamp, retrofit and debottlenecking.

The recent event in the global Oil & Gas industry, post the COVID 19 vaccination rollout has had a mix of an upward and downward trend. Adding to the current circumstances is the change in the US administration that drastically changed the shape of the energy mix in one of the most powerful countries in the globe.

Impact of Changing US Administration on the Brownfield Projects

The following two orders have a vertical and horizontal impact on the allied and ancillary industries, which would create the path for a different strategy for the business across the Oil & Gas vertical.

  • Rejoin Paris climate agreement
  • Revoke permit for Keystone XL pipeline, pause energy leasing in ANWR

An impact of this order affects both the local market in the USA and the global Oil & Gas industry. To evaluate the overall parameters of the first order passed by the current US administration we need to understand the following points.

Impact of the business orders which are delayed due to COVID 19

There are billions of dollars in the financial books for various oil & gas companies across levels and services. Due to Covid-19, the projects were either put on hold or canceled indefinitely. It has had a great impact on the books of almost all of the companies working in the Oil & Gas Industry, impacting jobs and lives in the state.

However, various stimulus programs helped companies to cope up with the situation towards a promising bright future filled with growth and prosperity. But the change in the administration has changed the direction of industry with the re-joining of the Paris agreement. This has suddenly made the projects on hold by the big oil & gas production company vanish into thin air. The direction has been into retrofit & brownfield projects, where the investments are made to comply with the new environmental norms.

Also, the talk of the town Is now “Hydrogenation” and “carbon capture” where the investments are moving towards. However, these changes are not easy on the industry, many of the companies have to look at viable options to make the project feasible and comply within the stipulated time adhering to codes & quality.

“Chevron one of the largest oil & gas producer across the globe have made the following pledge for 800 million through a different fund for low carbon emission. The SHALE and BP are also pledging similar lines.”

Movement on the modification activity

A huge amount of retrofit and modification work is available currently in the US market. The work is driven mostly by the different manufacturing facilities, which requires compliance with the new environmental norms. The different units which we foresee require modification are Heater units, Flare Stacks, better air circulation in the plant for cleaner combustion, deep oil extraction from Refinery, Vapour Recovery unit, and WHRU. Lots of Point cloud to 3D model and modification activity could be foreseen in 2021-2022. These opportunities are available for all the companies with experience in handling these units to support and assist the manufacturer.

We at Rishabh Engineering are aggressively part of this movement in the US region while assisting clients across the different states providing value engineering services. Our team has been providing quality deliverables, within the timeline to customers using our expertise by working on the units as mentioned above.

Recently we worked with one of the customers to provide point cloud to 3D model and detail drawing for replacement of steam injector with Heat exchangers for an Acetylene complex. This project was one of the kinds resembling the movement we are foreseeing in the US market. As an experienced team, we foresee plenty of such opportunities to prosper as we could help you on such an assignment with our experience.

Here is our ecosystem for brownfield engineering initiatives;

Our Ecosystem For Brownfield Project Initiatives

Please drop us a line to discuss on any such requirement or answer the queries you might have for us.

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