Outlook 2022: Global Project Demand Outlook

Grant Wattman, president and founder, Jade Management Group

I expect that we will be looking to late 2022 for some stability in the project market, stability that we have not seen for a couple of years. Projects are moving ahead, albeit at a slower pace due to the chaotic supply chain, in terms of pricing, capacity and performance. This is exacerbated by resourcing issues in all skill sets from project conception through to front-end engineering and design and execution. Significant numbers of individuals are leaving the industry and there is very little interest from others to jump in – being in the oil, gas and petrochemical sector is becoming a dirty word.

Nevertheless, we should look to limited growth in North America, with increased activity in the Middle East and Asia-Pacific, across the industry portfolio. I am certain there will be growth in small/micro liquefied natural gas projects, particularly LNG-to-power and small-scale nuclear.

There is lots of excitement around renewables, but remember here to follow the money. The likes of offshore wind and solar are very active and exciting things are happening. As long as governments invest in this sector it will be strong. This brings me to infrastructure, a sector which is also fueled globally by governments looking to jump start their economy.

Another growth sector is mining, particularly in South America, Africa and Asia-Pacific as source regions for the key minerals – graphite, lithium, cobalt and platinum group minerals – required in our endeavors to reduce our global carbon footprint. Also playing in this area is our industrial and specialty gas industry, particularly hydrogen and carbon capture and sequestration. Watch for growth globally there too.

In summary, there is growth coming and activity is increasing, but we need to watch cautiously as money markets tighten, whether through inflation or governments drawing on available funds. These could lead to delays in projects because the current cost models impact the business plan, resourcing available to plan and the ability to execute projects.

I expect supply chain capacity and costing to be a challenge through 2022 and into 2023, at a minimum.