Shale oil & gas boost for North American rental
30 September 2014
Shale oil and gas activities could generate an additional US$26.7 billion (€21.2 billion) in equipment rental revenues between 2012 and 2025, according to a study by research company IHS Global Insight for the Energy Equipment Infrastructure Alliance (EEIA).
The report analysed the unconventional oil and gas supply chain over 56 North American Industrial Classification System (NAICS) sectors representing over 40% of employment across the unconventional energy sector.
The report showed that the states producing unconventional energy from shale formations benefitted substantially from the economic activity generated by developing these resources.
However, non-producing states also benefitted because of the manufacturing, mining, transportation and services their businesses provided as inputs into the unconventional energy sector.
The report found positive results for every NAICS sector analysed.
The American Rental Association (ARA) is a founding organisation member of EEIA and supported the study with its long-term research partner IHS Global Insight.
The report quoted ARA member Mark Gilbertson, owner of Fargo Rentall in Fargo, US, and chairman of the ARA Construction and General Tool Shared Interest Group.
“In recent years North Dakota has had a strong economy while much of the US has struggled. Part of this is due to the strong performance of established industries in the state like ranching, grain farming and coal," Mr Gilbertson said.
“However, the development of the Bakken Shale formation has been the fundamental driving force in the rapid and sustained growth of the State’s capital stock and specifically in the amount of rental equipment working in North Dakota.
“We have experienced multiple years of double digit growth in our rental fleet that is only constrained by our access to capital. Simply put, the sky is the limit,” he added.
IHS Global Insight will report on the study at the ALH Conference & Awards on 11 November. This is a major North American event focussing on rental owners and aerial work platform, mast climber, access, telehandler and scaffold distributors.