top of page

Oil and Gas Industry Expected to Increase R&D Spending

In the oil and gas industry, better system design often starts with a new custom hydraulic manifold. Well operators tend to have unique fluid power needs dictated by the geological challenges they face at different sites and the manifolds they use need to accommodate these per-application requirements while respecting industry conventions for port configurations, valve locations, cleanliness, weight and ease of installation.

For distributors that serve the energy industry, it can be difficult to find a supplier willing to fill repetitive, low-volume orders for this type of custom manifold, particularly when extensive research and development are required at the outset. This is one area where Daman Products stands out from our peers: we are always ready to jump at the opportunity to participate in a cutting-edge R&D project. We've been manufacturing custom manifolds since 1976 and today they account for 65 percent of production, giving our design and manufacturing capabilities breadth and depth that are unsurpassed within our industry.

We process more than 140 custom manifold quotations every week and employ a team of nine full-time designers to ensure that each project receives the attention it deserves. Furthermore, our experienced sales support staff is available to address any technical issues that arise during the design and engineering processes, helping ensure that we are able to meet your needs.

What's driving the increase in oil and gas companies' R&D spending?

Oil and gas companies will have a need to develop more sophisticated fluid power systems as they continue exploring for hydrocarbons in increasingly challenging environments, from underground shale formations to deepwater reservoirs. Simultaneously, they are under pressure from regulators to go to new lengths to guarantee the safety and reliability of their operations.

The combination of these two trends, along with intensifying competition and growing demand, is prompting an increase in the industry's R&D spending, according to recent research from Lloyd's Register Energy. The company released the preliminary results of its Technology & Innovation Radar survey at the recent Offshore Technology Conference in Houston, which attracted a record number of attendees this year.

More than one out of three respondents said they expect R&D spending to increase by at least 10 percent during the next two years. While companies indicated that they are interested in making incremental improvements in uptime and efficiency, they are also seeking to drive "breakthrough innovation" that allows them to overcome obstacles and operate in new environments.

John Wishart, president of Lloyd's Register Energy, said in a press release that technological innovation is "seen as the catalyst for a better performing oil and gas sector and a competitive necessity among the key operators." He also discussed the need for stakeholders to work collaboratively to develop new technologies because "engineering systems have become more complicated and integrated." In his view, companies in the sector "will benefit from a clearer understanding of the potential innovation scenarios."

Does your manifold supplier take a collaborative approach to design and fulfillment?

The need for oil and gas companies to deploy specialized fluid power systems will likely precipitate an uptick in orders for custom manifolds. However, because these products need to be incorporated into holistic system designs, the development process can be lengthy and complicated. As a distributor, you need a partner on the supply side that will be committed to working with you on all aspects of research, design, manufacturing and delivery.

Daman Products can make this commitment with confidence because taking a collaborative approach is an ingrained part of who we are. We work closely with our customers on every custom manifold design project to identify and resolve technical issues as early in the process as possible, allowing us to produce a functional, cost-effective product and develop supplier-distributor-user relationships that are based on mutual trust.

We are also able to bring the proven reliability of our standard product fulfillment systems to repetitive, low-volume custom manifold orders with the Daman Trigger System. Built around what our customers need, rather than what is convenient for us, the Trigger program provides a flexible way for you to order custom manifolds when you need them with minimal overhead.

Once we've established programming, processing, tooling and fixturing, your custom manifold can essentially be treated as standard product, allowing us to ship parts on-demand within 24 hours. In turn, you can reduce your inventory commitments by up to 90 percent and say goodbye to elaborate forecasting processes, while retaining the ability to quickly respond to changes in demand.

We'll maintain a small inventory based on your expected and maximum usage and continually refill it as you order parts, ensuring that there is always enough custom product on hand to meet your needs. We will consider any custom product with an annual purchase level of at least 10 parts for inclusion in the Trigger program.

If you're interested in learning more about our custom manifold design services or the Daman Trigger System, please browse our website or contact us today by calling 800-959-7841 or sending an email to We're on a journey to create the perfect supply system for manifold distributors. We hope you'll consider joining us.


bottom of page