Produced water contains a blend of inorganic and organic compounds and is produced during the extraction of oil and gas. In terms of administrative divisions, there is no separation between produced water and oil management. However, multiple stages within oil management cater to the management of produced water. Oil production companies try to reduce the amount of water produced during extraction as higher amount of produced water needs to be consequently treated and disposed. Conventional oil production techniques result in a large amount of produced water.
It is estimated that the volumes of produced water across the globe will rise to nearly 340 bn barrels the end of 2020, indicating a massive leap from the nearly 202 bn barrels recorded in 2014. In a recent report, Persistence Market Research states that this significant rise in the global production of produced water will fare well for the global market for produced water treatment in the near future.
The report states that the market will expand at a CAGR of 6.1% between the period of 2015 and 2020, rising from US$4.6B in 2015 to a revenue opportunity of US$6.0B by 2020.
Vast Rise in Oil and Gas Exploration Activities to Drive Market
The rapid growth of the world population is posing a challenge to the available drinking water supply. Since agriculture and energy production draw more freshwater and produce contaminated water in turn, the water which was once termed as waste is being perceived as a valuable resource. This is creating a need for the treatment of produced water. The potential of oilfield produced water to be a source of fresh water and rising environmental concerns are making produced water treatment a significant part of the oil and gas industry.
The stringent legislations on the discharge of produced water into the environment are also driving the global market for produced water treatment systems. Increasing oil to produced water ratio, growing regulatory standards and water scarcity are key driving factors for the increased adoption of these systems. An increase in the rate of exploration of on-shore and off-shore oil and gas resources has also boosted the growth of the global produced water treatment market. The growing prevalence of fracking or land gas drilling through hydraulic fracturing has further augmented the growth of the market.
Asia Pacific to Present Most Promising Growth Opportunities
From a geographical perspective, the global produced water treatment market presently earns a significant share of its overall revenues from the North America market. Charting revenue worth US$1.73B recorded in 2015, the regional market is expected to account for over 41% of the overall market by 2020. A significant rise in oil exploration activities in the region and stringent government regulations regarding the release of treated and polluted water in larger water bodies have fuelled the need for effective produced water treatment systems in North America.
In the near future, however, the market in Asia Pacific will likely to expand at the most promising pace in the global market, accosting for a significant share of the overall revenue generated by the global produced water treatment market by the end of 2020. The Asia Pacific produced water treatment market is envisioned to grow rapidly owing to a constantly reducing supply of usable water, especially across countries such as China and India.
For more information, visit https://www.persistencemarketresearch.com/market-research/produced-water-treatment-systems-market.asp.
SOURCE: Persistence Market Research