Produced Water Treatment Equipment Market in North America to Reach $1.2 Billion in 2017
DALLAS, October 9, 2012 /PRNewswire/ –
ReportsnReports.com adds new market research report “The North American Market for
Produced Water Treatment Equipment” to its store.
The North American market for produced water treatment equipment was valued at $760
million in 2011 and should reach $825 million in 2012. Total market value is expected to
reach nearly $1.2 billion in 2017 after increasing at a five-year compound annual growth
rate (CAGR) of 7.7%. Oil field-produced water is expected to increase from $627 million in
2012 to $929 million in 2017, a CAGR of 8.2%. Gas field-produced water is expected to
increase from $198 million in 2012 to $267 million in 2017, a CAGR of 6.2%.
This report is intended to provide an in-depth analysis of the produced water
treatment equipment market
. The study examines market value by world region, equipment
type and offshore versus onshore use. The world regions discussed are the Americas – North
America (the U.S., Canada and Mexico), and Central and South America – Europe, the
Asia-Pacific region and Middle East and Africa.
Until renewable, sustainable sources are fully developed, the demand for fossil fuels
will continue to grow. According to the International Energy Agency’s (IEA) most recent
World Energy Outlook, the production of conventional crude oil, the largest single
component of the global oil supply, will remain at current levels before declining
slightly, to 68 million barrels per day, by 2035. To offset declining production at
existing fields, 47 million barrels per day of additional gross capacity are required.
This volume is twice the current total oil production of all Organization of Petroleum
Exporting Countries (OPEC) in the Middle East. A growing share of this output (10 million
barrels per day) will come from unconventional sources.
The IEA forecasts a bright future, even a golden age, for natural gas, especially for
so-called unconventional gas, such as shale gas and coal bed methane. Unconventional gas
now accounts for 50% of the estimated natural gas resource base. By 2035, unconventional
gas is predicted to rises to 20% of total gas production, although the pace of development
will vary considerably by region. The growth in output also will depend on the gas
industry dealing successfully with the environmental challenges. “A golden age of gas,”
says the IEA, “will require golden standards for production.”
The demand for carbon-based energy
is a major market driver for products and services used to treat the
water produced during oil and gas exploration and production (E&P). Produced water, the
effluent that rises to the surface during E&P, includes naturally occurring water in
energy deposits and water injected into formations during drilling processes.
Produced water comprises approximately 98% of the total waste volume generated by the
industry. Current global E&P companies
and their activities generate more than 115 billion bbl per year
(bbl/y) of produced water. For every barrel of oil, an average of three barrels of water
is produced. In the U.S., the water-to-oil ratio (WOR) averages eight barrels of water to
one of oil. On average, for every barrel of oil currently recovered, eight barrels of
wastewater are also generated. During the next 15 years, the water-to-oil ratio is
forecast to increase from 8:1 to 12:1. In the worst cases, the WOR reaches 50:1. To
dispose of produced water, energy companies pay from $3 per barrel to as much as $12 per
barrel. With the need to manage such large water volumes, the oil and gas production
industry has become as much about water as it is about energy.
In addition to large water volumes and high disposal costs, energy developers using
traditionally produced water practices are facing increased opposition from environmental
activists, local and state governments, and the public. These groups are concerned that
the water is leaking from traditional containment pits and entering groundwater and
surface water bodies. Historically, produced water has been contained temporarily in pits,
and then either transported to treatment plants or evaporated.
During a producing oil well’s life cycle, it initially produces oil along with a small
amount of water; but, over time, the percentage of water increases. Throughout the well’s
service life, the produced water must be separated from the oil it contains. Following
treatment, the water may be handled via one of three methods: safely discharged (used
mainly in offshore applications), reinjected into the hydrocarbon formation (used in
onshore, coastal or environmentally sensitive areas) or reused (either to maintain
reservoir pressure and enhance heavy oil production or in other beneficial applications).
In most world regions and for all of the end uses/disposal options, treated water quality
must meet certain standards, including low toxicity, high biodegradability and low
potential for bioaccumulation in the food chain.
A number of water treatment technologies and equipment types are commercially
available for use at oil or gas production sites. These processes can reduce the cost,
inefficiency and risks associated with treatment pits and the transport of toxic water.
The treatment technologies include methods for de-oiling, de-sanding, desalinating and
disinfecting produced water
. Numerous systems types are on
the market; separators, hydrocyclones and distillation-, ion exchange-, adsorbent- and
membrane-based units, as well as proprietary equipment and combinations of equipment are
among the choices.
Some of these products and technologies enable the treatment of produced water to a
quality suitable for beneficial reuse. Presently, most of the water reused is employed for
reinjection in enhanced oil recovery operations. However, there is also future potential
for recycling the water in agriculture or a new source of municipal or industrial water
supply, especially where water scarcity is an issue.
STUDY GOALS AND OBJECTIVES
The market evaluation by equipment type looks at produced water treatment systems
within three broad categories: primary and secondary treatment oil-separation equipment
(minimizes oil in water content to 25 parts per million [ppm] to 30 ppm), tertiary
treatment equipment (further reduces oil in water to less than 10 ppm) and advanced
treatment (processes for desalinating produced water and enabling zero liquid discharge).
In the market analysis by hydrocarbon resource, value and growth are evaluated for
equipment used in treating produced water from conventional oil and gas production and the
development of unconventional resources: tight oil, oil sands bitumen, shale gas and coal
bed methane. (For the purposes of this report, tight gas, natural gas that is difficult to
access because of the nature of the rock and sand surrounding the deposit, is included in
Because regulations governing offshore- versus onshore-produced water discharge
differ, the equipment market is also evaluated by that parameter. In addition, the two
markets are growing at different rates and are propelled by somewhat different drivers.
Technical and market drivers are considered in evaluating the current value of the
technologies and in forecasting growth and trends over the next five years. The
conclusions are illustrated with a wealth of statistical information on markets,
applications, industry structure and dynamics along with technological developments.
Because of the diverse and somewhat fragmented nature of the produced water treatment
industry, it is difficult to find studies that gather such extensive data from such
far-flung resources into one comprehensive document. This report contains a unique
collection of information, analyses, forecasts and conclusions that are very hard or
impossible to find elsewhere.
This report is designed to be of value to a wide array of readers. Those expected to
have the greatest interest are players already active in oil and gas production and/or
produced water treatment. The study will be of value to startup companies with novel water
treatment technology, especially for the hydraulic fracturing sector
, since that market is still emerging and
has no dominant players. Oil-field services businesses should find the report useful for
its overview of treatment technologies, which include performance data, as well as capital
and operating cost information.
It should be of interest to venture investors, entrepreneurs and entrepreneurial
companies interested in entering or expanding into the produced water treatment sector.
Other public- and private-sector interest groups, market analysts and general readers
wishing to gain broader knowledge of the dynamics of the produced water treatment
equipment market also are expected to find the report worthwhile.
SCOPE OF REPORT
The scope of this report is focused on global produced water treatment equipment for
the oil and gas industry. The market is broken down by several different parameters,
including world region, equipment type, produced water source and offshore/onshore
There are a number of expenses related to produced water management, including
expenditures for services and equipment for downhole water minimization, for lifting water
to the surface, for treatment, for reinjection, and for hauling and off-site disposal.
This report will evaluate only oil and gas sector purchases for treatment equipment.
The study covers the industry on a worldwide basis in terms of the manufacture and
deployment of treatment systems. BCC examines government roles in support of global
markets, including regulatory support, government requirements and promotional incentives
for various technologies as relevant and available.
Companies profiled in this report:
212 Resources Agv Technologies, Inc. Aker Solutions Altela, Inc. Amcol International Corp. Aqua Ewp Aqua-Pure Ventures Aquatech Auxsol, Inc. Cameron International Corp. Dps Global Drake Water Technologies, Inc. Ecosphere Technologies Eco-Tec Eprocess Technologies Pty. Ltd. Exterran Flsmidth Fmc Technologies (Cds) Filterboxx Packaged Water Solutions, Inc. Ge Water & Process Technologies Geo-Processors Pty. Ltd. Geopure Hydrotechnologies Global Process Systems Gradek Energy, Inc. Halliburton Hamworthy Hydration Technology Innovation (Hti) Layne Christensen Mycelx Technologies Corp. Nov Mission Products New Logic Research Ovivo Process Group International (Pgi) Prosep Inc. Saipem Schlumberger Set Corp. Severn Trent Siemens Water Technologies Veolia Water Solutions & Technologies Vme Process, Inc. Wastewater Resources, Inc. (Wri) Water Standard Co. Watertectonics Water & Power Technologies, Inc. (Wpt)
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