Summary
1. There is global economic slowdown. 2. During the growth period a very strong equipment upgrade push/momentum was created. 3. This momentum eventually will be reduced, but it may take a while.
Analysis
We do not have to say that oil prices were up "through the roof" in the recent past. With industry and consumers paying the bills and taking a punch, oil exploration and refining industries were able to create a decent push and momentum of the equipment upgrade. Most of the companies that supply equipment to the oil and gas industries have backlog of the orders and nearly trippled in size. This momentum is still going. It will slow down, but not necesserily drastically. Recent orders of ABB show it very clearly. Within the years, ABB refined itself from being a huge multi-industry conglomerate, to being "more-focused" cpnglomerate with still wide, but more focused presence in the variety of industries. Having divisions responsible for elctrical motors manufacturing, drives manufacturing, controls divisions, allows the company to be more efficient, than the competition, especially in the oil and gas, minerals markets. Recent orders and agreements with crosscut of natural resources development companies prove this point.
