Top 11 Export Markets for U.S. Oil and Gas Industry Equipment
Despite significant drops in global oil prices, demand for energy supplies remains strong. While the supply of crude oil dominates industry and world news headlines, there are several industries ranging from chemicals to transportation services that are directly impacted by the flow of oil and gas. We at Crescent Air Freight follow this industry closely as it directly affects many of our customers across a range of business segments from compressors to spare parts, valves and pumps and others. Based on the general classification from the United States Census Bureau, here are the top markets for U.S. “Oil and Gas Field Machinery & Equipment” as defined by NAICS code 333132:
11. Colombia – 2014 Oil and Gas Field Machinery & Equipment exports: US$196,361,000
Beneficiary of a Free Trade Agreement with the United States since May 2012, Colombia’s oil & gas sector relies heavily on U.S. manufactured equipment to help meet its growing energy needs. Exporters, however, should be very careful with commercial and shipping documentation to ensure compliance with local customs procedures.
10. United Arab Emirates – 2014 Oil and Gas Field Machinery & Equipment exports: US$285,467,000
Home to the vast oil reserves of Abu Dhabi and trade friendly distribution “mega hub” Dubai, the UAE has been an ongoing buyer of American made products for the oil & gas industry. The presence of major oil industry players such as Halliburton and proximity to the world’s largest oil & gas producing markets ensures that American businesses will continue to find the UAE to be a growth market well into the future.
9. United Kingdom – 2014 Oil and Gas Field Machinery & Equipment exports: US$218,238,000
America’s single largest market for exports amongst the European Union member nations, and home to vast reserves of North Sea oil, the United Kingdom proves its worth as a solid market for U.S. exports in the oil and gas industry.
8. Canada – 2014 Oil and Gas Field Machinery & Equipment exports: US$301,898,000
As we had highlighted in our list of Top 10 Markets for U.S. Exports, Canada is the # 1 destination for U.S. exports overall. The country has been in the midst of an oil boom over the past decade and will continue to offer American exporters of oil and gas equipment, services and affiliated products, opportunities close to home. The Canadian Energy Research Institute estimates the country will see over $500 billion in new investment over the next 25 years, ensuring excellent opportunities for industry suppliers for years to come.
7. Angola – 2014 Oil and Gas Field Machinery & Equipment exports: US$326,030,000
In 2013 Angola ranked as the 71st largest market for U.S. exported goods (source: Office of the United States Trade Representative). An OPEC member since 2007, Angola derives nearly 45% of its GDP from oil production. All of this combined with a strong rate of economic growth spells good opportunity for American businesses.
6. Brazil – 2014 Oil and Gas Field Machinery & Equipment exports: US$367,223,000
While a great deal has been made of Brazil’s use of ethanol to achieve energy independence, the fact remains that the world’s 5th largest country does have significant oil reserves and demand. When it comes time to get the crude “out of the ground” or process its natural gas, Brazil looks to U.S. companies to provide key equipment and technologies to support its energy sector.
5. Russia – 2014 Oil and Gas Field Machinery & Equipment exports: US$395,135,000
Recent political developments have resulted in the enforcement of significant trade sanctions against Russia. U.S. exporters must exercise caution in dealing with this market for the foreseeable future. On the upside, however, when sanctions end, business comes roaring back. Until then, however, there’s always…
4. South Korea – 2014 Oil and Gas Field Machinery & Equipment exports: US$477,029,000
Another country on this list that enjoys a Free Trade Agreement with the United States, South Korea purchases significant volumes of oilfield products and services from the United States. A favorable trade environment and strong political ties have made this country a Top 10 trading partner for the United States and growth opportunities will exist in the energy sector for years to come.
3. China – 2014 Oil and Gas Field Machinery & Equipment exports: US$503,942,000
Trade compliance issues are to be noted, as well as some difficulties with customs procedures, which we detailed in this recent article. Nonetheless, China is the biggest overall market in Asia and not surprisingly this applies to the oil and gas industries as well.
2. Saudi Arabia – 2014 Oil and Gas Field Machinery & Equipment exports: US$587,509,000
The conversation on oil, gas and energy begins and ends here. To say Saudi Arabia is a key market for the oil and gas business is to overstate the obvious. Luckily for American exporters in this field, Saudi Arabia remains the place to look for growth. Despite recent drops in oil prices Saudi Arabia has maintained, and slightly increased, its annual budget for 2015 and the energy sector will be the prime beneficiary of this spending.
1.Mexico – 2014 Oil and Gas Field Machinery & Equipment exports: US$842,216,000
As we detailed in this recent blog post Mexico is a great market for two way trade with the United States. A beneficiary of the North American Free Trade Agreement, Mexico looks to the United States to service the needs of its growing energy demands. U.S. companies enjoy the ability to reach most parts of Mexico by overland transportation services, and NAFTA enables a smooth and orderly flow of goods thereby minimizing potential customs or regulatory problems.
Keep in mind that these figures only refer to one classification of oil & gas industry equipment. As energy is a massive industry, so too are the product classifications. Exporters must take the time to learn about compliance issues and regulatory concerns for their specific product line. Logistics companies can help by applying their considerable market knowledge and expertise. U.S. companies are also advised to check with the U.S. Department of Commerce for market and compliance data relevant to their specific products.