Tuesday, 11 August 2015

Produced Water Treatment Market Segment Forecasts up to 2020


Produced water is a mixture of large amount of organic as well as inorganic compounds produced during the process of oil and gas extraction. There is no separate division in the management of oil and water produced. There are various areas of the management of water during oil and gas production. The aims of the produced water management are to minimize the volume of produced water, lifting and pumping the water, its treatment and disposal. Quantity of the produced water of in the production of conventional energy sources such as oils and gas is exponentially proportional.

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While for the unconventional source, amount of produced water is inversely proportional. Produced water treatment market can be segmented as on-shore and off-shore based on the application. Based on the treatment types, the global produced water market can be segmented as chemical, physical, membrane and others.

Growing exploration and extraction of oil & gas across the world is expected to drive the produced water treatment market. Global energy demand is driving the oil & gas industry. Furthermore, increasing prevalence of the land gas drilling and hydraulic fracturing across the globe is expected to drive the market. Increasing exploration and discovery of shale gas in the U.S. is driving the global oil and gas production at a significant rate. Unconventional sights and sources of the oil and gas are adding to the production capacity and ultimately increasing the production across the globe. Furthermore, concern such as water shortage in the developing countries such as China is boosting the produced water treatment market. Produced water contains various contaminations and need to be treated before releasing them or reusing them. As oil and gas production increases the amount of water needed increase and hence the need to treatment of the produced water is increasing with the significant growth rate. In addition, increasing environmental concerns and regulations imposed by the governmental agencies is further expected to fuel the market.


However, high cost of plant set up and operational cost is expected to hamper the market growth. There are concerns with the end-users about high maintenance cost and down time of the operation, which would have adverse effect on the total cost. Resource and energy conservations strategies that will help in reducing energy consumption of the oil production plant would provide immense opportunities for the players in the market.

North America emerged as the largest market for the produced water treatment. Oil and gas production has been huge in the region and discovery of shale gas has boosted the North America energy industry. Furthermore, environmental regulations are imposing stricter regulations on the polluted water to be released in the environment. Asia Pacific was the second largest market with China contributing highest to the demand. Europe is expected to grow at a moderate growth rate. Rest of the World that includes Middle East is expected to grow at a significant rate during the forecast period.

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Global produced water treatment market is moderately consolidated with major players having presence across the value chain. Major players such as Halliburton and Schlumberger provide integrated solutions for oil and gas production companies. Key players in produced water treatment market include Enviro-Tech Systems, GE Water, Halliburton, Ovivo, FMC Technologies, Schlumberger, Baker Hughes Inc., Cetco Energy Services, Veolia, Siemens, Weatherford and Suez Environment.

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