Global Valve and Controls

Plastic in the industry

           Working for a valve manufacture that partakes in specific industries such as oil and gas, coal and mining, upstream, downstream, chemical,  you learn more about what products you can offer for those media applications and what you cannot. For instance, Global Valve and Controls offers materials such as SS, Alloy 20, CS and more but when it comes to plastic, GVC is no longer in the game. 

But what do plastics have to do with us being in this industry, anyway?

The word that is getting around is that, "the boom in natural gas production in the U.S is rippling downstream to the plastic industry. Chemical companies will need to invest more in export logistics facilities as they ramp up U.S. plastics production."

Again, how does plastic have anything to do with our side of the industry? An interesting point the article is making is that in the next few years there will be an additional 22 billion lbs. of polyethylene and polypropylene, plastics made by refining natural gas. Is that an understatement?


Oil prices start to rise again

For almost a whole year oil prices were down, and although this was a good news for many consumers, it was bad news for everyone who lost their jobs due to the oil being so low. Now as the hurricane season is upon us; oil prices are starting to rise and jobs are slowly opening up again. Some of the top companies are taking advantage of this increase in price as their stocks have begun to raise.

"There are eight energy stocks in the Standard & Poor’s 500, including Transocean (RIG), Devon Energy (DVN) and giant Exxon Mobil (XOM) where analysts have boosted what they think the companies will earn in the second-quarter earnings since the price of oil hit rock bottom in March"


Company Symbol % ch. Q2 est. * % ch. stock * % upside to 18 mo. target
Transocean RIG 80.9% 26.7% -18.4%
Devon Energy DVN 15.1% 6.6% 21.9%
Marathon Petroleum MPC 14% 4.4% 16.2%
Exxon Mobil XOM 13.7% -0.1% 12.7%
Tesoro TSO 11.3% -6.3% 24.6%
Chevron CVX 8.7% -3.2% 14.2%
Valero Energy VLO 7.5% -1.8% 21%
Occidental Petroleum OXY 6.7% 7.5% 10.2%

Sources: S&P Capital IQ, USA TODAY
* Since March 17, 2015


America takes Russian oil crown

We all remember the days when Russia used to produce the most oil and natural gas, but now the US has taken the lead thanks to their shale fields.

The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities.

The U.S. increase in oil output last year, helping it to overtake Saudi Arabia as a crude producer, was the first time a country has raised production by at least 1 million barrels a day for three consecutive year.



Did we forget about the Downstream Oil and Gas sector?

"Handling the downstream activities of the oil and gas sector need to be seriously considered as lawmakers deliberate a new oil and gas draft law to replace the existing 2001 law."

The downstream sector commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas.

There needs to be more focus on opening more access to facilities and developing refineries that are integrated with the petrochemical industry. The Jakarta article quotes, "What we see now is that the downstream sector has its own way of gas or fuel distribution while the upstream sector also moves on its own with its contract system"