Produced water is a waste stream of inorganic and organic compounds that is generated during the oil and gas extraction process. Thus, produced water is a byproduct of oil and gas extraction. Produced water is an industrial waste product that has to be disposed of appropriately or reused. The produced water management tasks are the treatment, disposal, and lifting and pumping of the waste water that is produced.
Shale Gas Discovery and Hydraulic Fracturing Methods Elevating Market
The global produced water market
is anticipated to expand at an approximate CAGR of 6% over the next few years, due to the growth of the oil and gas industry worldwide. Due to augmenting oil and gas production, the amount of produced water also increases, and this factor boosts the produced water treatment market globally. The growing demand for energy is driving the global produced water treatment market. Exploration and discovery of shale gas in the U.S. is propelling the global oil and gas production substantially. Additionally, increased hydraulic fracturing and land gas drilling activities are expected to bolster the produced water treatment market over the next few years.
Water Shortage Driving Reuse of Produced Water
Other factors responsible for the growth of the market for produced water treatment are the discovery of unconventional sources and sites for oil and gas, which is increasing production of oil and gas, and thus produced water, across the globe.There are contaminants in produced water that need to be treated before the water can be reused. This requirement is among the several factors that is fueling the produced water market. But, the high operational costs of setting up the waste water treatment plant can be a restraining factor for the produced water treatment market. Other factors such as high operational costs and high maintenance costs for end users could adversely impact the total costs.
Thus, produced water is now increasingly reinjected into the oil well, increasing the amount and efficiency of crude oil extraction from the well. The water shortage in oil-producing regions such as China are also boosting the produced water treatment market, since produced water is increasingly being used for reinjection.
North America Leads Global Market due to Increased Oil and Gas Production
The discovery of shale oil and immense oil and gas production in North America has made the region the largest produced water treatment market. The oil and gas discoveries in North America has fuelled the North American energy industry. Stringent environmental regulations require the treatment and reuse of the waste water that is generated.
Asia Pacific is expected to be the second largest market for produced water treatment, with China having the largest share. Europe is expected to grow moderately in the next few years. The produced water treatment market in the Middle East and Rest of the World (RoW) is foreseen to record substantial growth over the coming years. The major players in the produced water treatment market are FMC Technologies, Baker Hughes Inc., Halliburton, Veolia, Enviro-Tech Systems, Suez Environment, Ovivo, G E Water, Cetco Energy Services, Schlumberger, Siemens, and Weatherford.