Strength across all oxygen markets as the US pulls out of the recession has led to greater demand for oxygen. Major gas producers in the US have been concentrating on on-site oxygen and nitrogen for new large volume applications such as Gas-to-Liquid projects, coal gasification, and oil well workovers.
These diversified applications, created by and dependent on consistently high oil prices, have lessened air gas producers’ reliance on demand from traditional fabrication and metals sectors. In this report, we examine how the markets for oxygen fared in 2010 and 2011, and take a look ahead to see how they are likely to perform in 2012.
Oxygen Markets and Demand
Oxygen markets fared well in 2010 and into this year as mentioned in “The US Industrial Gas Market Report,” published by CryoGas International (CryoGas) in August/September 2011. Key markets for oxygen are: metals, where oxygen is used for steelmaking and metal-cutting applications; the chemical and refining industries, which use oxygen for the production of fuels and chemicals; pulp and paper processing; glass-making, especially oxyfuel combustion applications; gasification; and healthcare, where oxygen is used for therapeutic purposes.
One currently strong market driver is oxygen combustion, an application used in modern, high-productivity Electric Arc Furnaces (EAF) for steelmaking. In EAF, oxygenderived chemical energy provides 30 percent or more of the total energy required to make the steel. The increase in demand for steel during 2010 and 2011 bodes well for oxygen demand.
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