Petrofac An oil production platform project in the U.K. hits its stride as industry insiders say the global petroleum market has not yet hit its peak.

Exxon Mobil says in its newly released Outlook for Energy: A View to 2030 that it expects worldwide annual energy demand to grow by an average of 1.3% per year over the next 23 years. “Energy demand growth in the developing world...is expected to be 2%/year—four times that of the developed world at 0.5%/year,” the energy giant concludes.

By 2030, worldwide energy demand is likely to rise by more than one-third to the equivalent of 325 million barrels of oil per day. Oil, gas and other hydrocarbons will continue to account for about 80% of total energy demand through 2030, with oil and gas alone accounting for about 60%.

“The market has been very robust, not just for us but for everyone in the oil and gas engineering and construction business,” says Michael Pears, senior vice president of the engineering and chemicals group at Irving, Texas-based Fluor Corp. With oil prices at near-record levels and demand for energy on the rise, “a lot of clients are investing a lot of money in upstream oil and gas production, and downstream in refineries and petrochemical projects,” he says.

“I don’t think we have hit the peak, and I don’t think we will until 2008 or 2009,” Pears adds, noting that, in his view, the market for engineering and construction services in the energy field will remain strong for years to come.

The 2007 Global Sourcebook Overview: Firms Are Now More Selective Manufacturing/Industrial Process: Expansion of Market Spurs Firms To Adopt Coherent Global Approach Environment: Environmental Market Strong As Developing Nations Update Facilities General Building: Economic Recession Worries in U.S. Fuel Interest in International Projects Telecommunications: Growing Global Telecommunications Market Reaching Developing World Petroleum: Growing Demand in Developing World Boosts Petroleum Market Power: Despite Climate Change Fears, China And India Focus on Coal Transportation: Rapid Global Development Fueling Greater Demand for Rail and Transit Complete Report The Complete 2007 Global Sourcebook with data and market analysis

Worldwide Boom

Engineering and construction activity is occurring at a feverish pace in all sectors of the petroleum industry around the world. This includes the Middle East, Russia and other former members of the Soviet Union, Africa, Southeast Asia and South America. Canada’s oil-sands region also is in the midst of what could be a long-term boom.

Much of the work in the Middle East involves projects that enable oil companies to add economic value to crude oil by refining it into gasoline, diesel oil, jet fuel and petrochemicals. For example, Qatar Petroleum recently awarded Paris-based Technip a $60-million lump-sum front-end engineering design (FEED) contract for the planned Al Shaheen refinery to be built in Messaieed, Qatar, and scheduled to begin commercial operation in 2011. In addition to the 250,000-barrel per day refinery, the proj ect includes a 124-mile crude-oil pipeline from the Al Shaheen oilfield to Messaieed, “as well as other required import/export facilities,” Technip says.

A joint venture of Technip and National Petroleum Construction Co. of Abu Dhabi also recently won a $370-million contract to install gas processing and compression facilities that will increase production from the Zakum gas processing facilities off the Abu Dhabi coast.

“A number of long-term drivers are keeping the demand for our services strong, principally the multibillion-dollar programs of capital expenditure that are required to replace the depletion of existing [oil and gas] production, and [the need] to...