The global oil and gas industry was a major victim of the COVID-19 pandemic due to a drastic slump in energy demand. Such was the impact of the pandemic on the oil industry that benchmark Brent crude oil prices plummeted to a historic low of under US$ 20 per barrel in April, 2020.
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This led to most major oil producing countries such as Saudi Arabia, Russia, Iraq, UAE, etc. resorting to production cuts to stabilise global crude prices. These production cuts still continue. The net result of this downturn for the market was a reduction in demand for produced water treatment systems.
- The global produced water treatment systems market size in 2018 was ~US$ 6 Bn.
- The demand for water treatment systems is expected to grow at a CAGR of ~6% during the forecast period of 2019-2029.
- Upsurge in the demand from the oil and gas industry, and stringent government regulations has been recently driving the sales of produced water treatment systems.
- Collectively, South Asia Pacific and East Asia are likely to account for half of the revenue shares in the produced water treatment systems industry by the end of 2029.
- South Asia Pacific, attributing to the strong presence of the oil & gas industry, is expected to continue to be a prominent regional market for produced water treatment systems manufacturers.
- The offshore reinjection segment is expected to remain a prominent application area to invest in, for major players involved in produced water treatment systems.
- The oil & gas industry has witnessed significant growth over the recent past, and rapid oil & gas exploration activities has been particularly noteworthy.
- Noteworthy application potential of produced water treatment systems has been identified in the offshore reinjection category.
On the basis of technology, FMI has segmented the produced water treatment system into primary, secondary, and tertiary.
Primary technologies involve basic methods to separate solids from water, such as upstream sand removal, whereas secondary treatment involves separating oil from produced water through gas floatation, degasser, and membrane separation. On the other hand, tertiary treatment technology makes use of a combination of both primary and secondary technology.
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Onshore crude oil industry in North America represented 49.14 Bn barrels or 79.1% of produced water in 2012. FMI expects this to reach 116.29 Bn barrels, or 70.6% in 2020. On the other hand, offshore natural gas segment is projected to reach a volume of 7.66 Bn barrels by 2020.
Crude oil and natural gas market has a direct impact on the demand for produced water treatment systems. According to FMI’s analysis, natural gas production in North America is anticipated to expand at a CAGR of 1.1% during the period 2014-2020, whereas, growth of crude oil production is set to increase at a CAGR of 4.8% between 2014 and 2020.
The produced water treatment systems market in Europe is expected to reach a valuation of US$ 1,191.6 Mn by 2020. FMI estimates the market in Europe to expand at a CAGR of 4.6% during the forecast period. Demand for secondary treatment systems is anticipated to expand at a moderate rate during the forecast period, however, FMI expects it to remain the dominant segment through 2020. On the other hand, stringent regulation on part of the governments in Europe is expected to fuel the development of tertiary treatment technologies in the near future.
Asia Pacific produced water treatment systems market, valued at US$ 960.7 Mn in 2014, is anticipated to increase at a CAGR of 4.8% during the forecast period and reach a valuation of US$ 1275.2 Mn. In terms of revenue, primary produced water systems technology is expected to be the largest contributor in Asia Pacific by the end of forecast period, owing to the growing number of new produced water treatment installations in the region. According to FMI, the growth of the market in Asia Pacific is expected to be driven by a large number of new installations.
By Capacity (thsnd bl/day)
- Less than 100
- 100 to 500
- Above 500
- On Shore
- Off Shore
- North America
- Latin America
- East Asia
- South Asia Pacific
- Middle East and Africa
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The key stakeholders in the global produced water treatment system market can be broadly categorised into treatment systems, mobile systems and rental service, and commissioning and consulting services. Schlumberger, Cetco, and Miox, Ovivo, and Global Water Engineering are companies that have a presence in all of the above-mentioned three categories.