The outlook for worldwide energy use, as shown in the most recent International Energy Outlook report prepared by the U.S. Energy Information Administration, projects rising energy demand over the next three decades. Most of this growth will occur in non-OECD (Organisation for Economic Co-operation and Development) nations where long-term economic growth will drive increasing demand.
Total world energy consumption is expected to rise from 549 quadrillion Btu in 2012 to 815 quadrillion Btu in 2040, an increase of 48 percent, with the use of petroleum and other liquid fuels growing from 90 million barrels per day in 2012 to 100 million barrels per day in 2020 and 121 million barrels per day in 2040. Most of the growth in liquid fuels consumption will be in the transportation and industrial sectors, with transportation (energy consumed in moving people and goods by road, rail, air, water and pipeline) accounting for 62 percent of the total increase. Even though consumption of non-fossil fuels is projected to grow faster than consumption of fossil fuels, fossil fuels will still account for 78 percent of energy use in 2040.
Houston-based NOW Inc. (NOW), a distributor of energy and industrial products in the United States, Canada and internationally, acquired Power Service Inc. Based in Casper, Wyoming, the acquired company provides rotating and process equipment engineering, design, installation, fabrication and service. The company distributes original equipment manufacturer (OEM) parts including pumps, generators, air compressors and blowers, and fabricates lease automatic custody transfer units, vapor recovery units, American Society of Mechanical Engineers (ASME) vessels and water transfer, disposal and flood packages. The company also offers field services, air system audits and maintenance plans.
Power Service Inc. serves agriculture, chemical producers, industrial, electronics, food and beverage, government, manufacturing, mining, oil and gas, power generation and water resources industries. The company was founded in 1954 and has locations in Casper and Green River, Wyoming; Salt Lake City, Utah; Denver, Colorado; Billings, Montana; North Dakota; Texas; New Mexico; and Oklahoma.
The acquisition will raise NOW’s valve actuation business services to a Tier 1 level and allow the company to leverage its Odessa Pumps and Equipment infrastructure in the Permian Basin and Eagle Ford areas and its pumping solutions businesses in the U.S. and Canada. NOW bought Odessa Pumps and Equipment, a provider of a full line of fluid transfer equipment to the oil and gas as well as municipal wastewater markets, in August 2015. Based in the Permian Basin, Odessa Pumps and Equipment has locations in Texas and New Mexico, with further operations in Oklahoma, Arkansas and Louisiana. The company exports equipment worldwide through its Houston facility.
NOW was created in June 2014 through a spin-off from National Oilwell Varco Inc., the large Houston-based energy equipment manufacturer. NOW supplies products to the upstream, midstream and downstream energy markets, as well as other industrial sectors. Customers include energy exploration and production, energy transportation, refineries, chemicals, utilities, manufacturers, and engineering and construction companies. It offers consumable maintenance, repair and operating supplies including pipes, valves, fittings, flanges, electrical products, artificial lift solutions, pumps, mill tools, safety supplies and spare parts. It also provides application systems and parts integration, optimization solutions and after-sales support services. The company also delivers supply chain management solutions that include procurement, inventory and warehouse management, logistics, point-of-issue technology, project management, business process and performance metrics reporting.
The company had revenue of more than $3 billion in 2015 and a network of more than 300 locations worldwide, including 200 locations in the U.S., 60 locations in Canada and 40 international locations. NOW plans to continue to grow through acquisitions by expanding its pumps, valves/actuation, safety services and electrical product lines, as well as expanding its international markets, while focusing on the downstream energy and industrial channels. Since its inception in 2014, NOW has made five acquisitions.
NOW Inc. 2015 Revenue by Product and by Geographic Segment