Produced Water Treatment Market - Snapshot

Produced water is an oil and gas industry term for any water that comes out of the oil or gas reservoir as part of the production process. Generally, produced water is a combination of formation water, connate water, and injected seawater; the concentration of each varies over field life. Oil reservoirs often contain large volumes of water, while gas reservoirs typically have smaller quantities. Oilfields produce more than 60% of daily produced water generated across the world. Recovery of produced water ranges from 85% to 100%. Therefore, reusing produced water in offshore and onshore oil field operations propels the demand for produced water treatment. More than 90% of the produced water is reinjected underground to maintain pressure in the reservoir. This offers growth opportunities to the produced water treatment market.

Environmental stewardship is now becoming a key priority in the industry, especially among major oil producers. Rise in investments in exploration and production of offshore oil and gas is boosting the adoption of produced water treatment around the world. Upstream activities for the offshore oil & gas industry are expected to augment their production volumes, thereby driving the demand for produced water treatment. Discovery of new oil and natural gas reserves, especially in the offshore areas of the North Sea, offers significant potential for the produced water treatment market. Global price of crude oil has been rising at a steady pace since the beginning of 2018. Offshore and onshore exploration and production activities have also increased at a rapid pace. This is anticipated to fuel the demand for produced water treatment in the oil & gas industry in areas such as the North Sea in Norway and the Bakken field in the U.S.

produced-water-treatment-report.jpg

Growth in environmental concerns is compelling countries to generate power using renewable sources of energy such as wind, wave, and tide. Intensive collaborative research between governments and manufacturers that use advanced materials and computer-aided design techniques has led to the introduction of new generations of turbines and reciprocating engines. This has significantly increased equipment efficiency and reliability, while reducing costs and pollutant emissions for the installation of produced water treatment plants. Governments of various countries have implemented policies and programs to promote the usage of produced water treatment with advanced technologies. Adoption of hydraulic fracturing techniques to extract oil and gas from shale formations leads to generation of surplus produced water. Reinjection of produced water in the onshore geologic formation helps eliminate the risk of seismic earthquakes. Governments are also providing subsidies to curb water pollution. Additionally, recovery of the economy in Europe, rapid urbanization in countries such as India and China, rise in global prices of crude oil, and increase in government efforts to improve oil dependency are estimated to boost the global produced water treatment market.

The global produced water treatment market can be primarily segmented based on technology, source, end-use, and region. In terms of technology, the produced water treatment market can be classified into primary, secondary, and tertiary. Secondary is a widely used technology for produced water treatment. Based on end-use, the global produced water treatment market can be bifurcated into onshore and offshore. Increase in oil and gas exploration and production activities to meet the demand for energy is propelling the produced water treatment market. Steady rise in prices of oil and gas is creating opportunities for the produced water treatment market. Many countries are investing in offshore oil and gas exploration projects. This is driving the demand for produced water treatment. Demand for produced water treatment has increased in the oil & gas industry due to the rise in investments in shale oil and gas activities. This is also expected to augment the produced water treatment market.

In terms of region, the global produced water treatment market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Europe is a mature region of the market. The market in North America is anticipated to expand substantially during the forecast period. Asia Pacific and Latin America are emerging regions of the market. The produced water treatment market in these regions is estimated to expand significantly during the forecast period.

Key players operating in the produced water treatment market are projected to benefit from the formation of strategic alliances. Prominent players functioning in the produced water treatment market are Siemens AG, Schlumberger Ltd., Suez S.A., Halliburton, TechnipFMC plc. and Veolia Water Technologies.

Produced Water Treatment Market - Overview

Produced water is an oil & gas industry term for any water that comes out of the oil or gas reservoir as part of the production process. Oil reservoirs often contain large volumes of water, while gas reservoirs typically have smaller quantities. Environmental stewardship is now becoming a key priority in the industry, especially among major oil producers. Consequently, optimization and development of treatment technologies for produced water treatment play an important role in the energy industry.

Implementation of stringent regulations related to minimization of harmful emissions is propelling the demand for produced water treatment. Increase in offshore oil and gas exploration activities in developed and developing countries has boosted the demand for produced water treatment. Therefore, governments of several countries are encouraging development and adoption of the latest technologies in the produced water treatment market.

North America is estimated to emerge as one of the prominent regions of the global produced water treatment market. Highly environment-conscious Europe is projected to lead the global produced water treatment market in the near future. The global produced water treatment market is anticipated to witness large number of collaborations between manufacturers and technology developers during the next few years.

This report analyzes and forecasts the produced water treatment market at the global and regional level. The market has been forecast based on volume (Mn Bbls) and value (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global produced water treatment market. It also covers impact of these drivers and restraints on demand for produced water treatment during the forecast period. The report also highlights opportunities in the produced water treatment market at the global and regional level.

The report includes detailed value chain analysis, which provides a comprehensive view of the global produced water treatment market. Porter’s Five Forces model for the produced water treatment market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein sources and end-uses are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global produced water treatment market by segmenting it in terms of technology, source, end-use, and region. Based on end-use, the produced water treatment market has been bifurcated into onshore and offshore. In terms of technology, the produced water treatment market has been classified into primary, secondary, and tertiary. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for produced water treatment in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides size (in terms of volume and value) of the produced water treatment market for the base year 2017 and the forecast for the period between 2018 and 2026. Market numbers have been estimated based on technology, source, and end-use of the produced water treatment market. Market value and volume have been provided in terms of global, regional, and country level markets.

The global produced water treatment market is highly competitive. Leading players dominate the market. Key players operating in the produced water treatment market include Siemens AG, Schlumberger Ltd., TechnipFMC plc., Halliburton, and Suez S.A. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The global produced water treatment market has been segmented as follows:

Produced Water Treatment Market, by Technology

  • Primary
  • Secondary

Produced Water Treatment Market, by Source

  • Crude Oil
  • Natural Gas

Produced Water Treatment Market, by End-use

  • Onshore
  • Offshore

Produced Water Treatment Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Rest of World

Key Takeaways

  • In terms of source, the crude oil segment constitutes major share of the produced water treatment market
  • Secondary is a widely used technology in produced water treatment, as it is cost effective
  • Prominent players invest significantly in research & development to differentiate their technology as key strategy to strengthen their market position
  • Market share of the onshore end-use segment is estimated to increase in the next few years due to the strong focus on expansion in oil and gas exploration activities. The segment is expected to provide lucrative opportunities to the market during the forecast period.
.