GetthebestofWaterOnlinedeliveredstraighttoyourInbox!

Search
SignMeUp(/UserEmailOnly/LoadHelloBarModal)

News|June3,2014

MakingSureTheOnshoreMarketSoars
Asoilfieldsmatureandunconventionalextractionmethodsgainground,growthindemandforwatertreatmentandreuseissettooutstripthewiderwaterservicesmarket
foroilandgas,accordingtoanewreportfromGWI.

In2014,theglobalmarketforwatermanagementservicesandtechnologiesintheonshoreoilandgasindustryisestimatedtobeworth$37.9B.Thisfigureisexpectedto
growat6%ayear,inlinewithincreasingoilandgasproduction.

GWIsnewprimaryresearchreport,WaterforOnshoreOil&Gas,focusesonopportunitiesforwatertreatmentinthreesegmentsoftheoilandgasindustryproducedwater
management,hydraulicfracturingandenhancedoilrecovery.

Thereportidentifiesthatthevolumesofproducedandflowbackwaterassociatedwiththeproductionofoilandgasareconstantlyrising.Thisisduetoanincreaseinthe
productionofunconventionaloilandgas,whichrequiresmorewaterperunitofproductrecovered,andanincreaseinwatertooilratios(WOR)inmatureoilfields.By2020,
theonshoreoilandgasindustrywillgenerateover500millionbarrelsofproducedwateraday.

Themanagementofproducedwaterisbecominghighlychallenging:disposaloptionsarebecomingmorelimited,regulationsaregettingstricter,andwatersourcesmore
scarce.Explorationandproduction(E&P)companiesarealreadyexperiencingthesechallengesandarebecomingmoreawarethatproducedwaterisanassetratherthana
wastestream.

ServicingtheUS
Accordingtothereportthelargestsegmentofthemarketiswatermanagementservices,whichwillbeworthanestimated$34Bgloballyin2014.Demandishighly
concentratedintheUnitedStates(71%oftheglobaltotal),andisdrivenbyincreasesinunconventionaloilandgasproduction.In2014,theUSmarketisestimatedtobe
worth$24B,withwaterhaulingthelargestcomponentoftheservicesmarket.

Treat'emwell

WaterforOnshoreOilandGaspredictsthatcapitalexpenditureonproducedwatertreatmentequipmentisexpectedtogrowfromanestimated$3.4Bin2014to$5.4Bin
2020.Therearefourprincipaldriversofthisgrowth:

IncreasingwatercutTheratioofproducedwatertooilproductioninmaturefieldsisincreasingrapidly.
GrowthinunconventionaloilandgasproductionInthefuture,thepercentageofglobaloilproductionextractedbyunconventionalmethodswillincrease.Technology
providersandservicecompanieswhocanefficientlymanagethewaterfromtheseoperationswillfindsubstantialopportunitiesinthissegmentofthemarket,according
toGWI.
StringentenvironmentalregulationsTheboominhydraulicfracturinghasfocusedanunprecedentedamountofattentionontheoilandgasindustry.Thereportis
designedtoassisttechnologyprovidersinthewaterindustrysectortomeetthesechallenges.
WaterscarcityThereportpinpointsthatthemostproductiveareasfortheoilandgasindustryfrequentlyoccurinregionswithscarcewaterresources.

Breakingwithconvention
GWIexpectsthat,withanaverageannualgrowthrateof14.2%,investmentsinproducedwatertreatmentforunconventionalresourceswillbethemostexcitingsegment
ofthismarketgoingforward.

Themajorregionswhicharelikelytogeneratesignificantopportunitiesbetweennowand2020canbesummarisedfromthereportasfollows:

NorthAmericaThecontinuedexpansionofSAGDproductioninCanada,andtheboomingdevelopmentoftightoilresourcesintheUSleadsGWItoanticipatethis
asoneofthemostexcitingareasforwatertechnologyproviders.
EastAsia/PacificAdvancedtreatmenttechnologies,includingreverseosmosis,arealreadybeingemployed,andadditionalwatertreatmentplantsarealreadyplanned
tocopewiththeproducedwatervolumesgeneratedbyAustraliasCSGtoLNGexportprojects.
MiddleEast/NorthAfricaProjectedincreasesinproductioninIraqwillrequiresubstantialinvestmentsinproducedwatertreatment.ExpenditureacrosstheMiddle
East/NorthAfricaregionisestimatedtobe$526Min2014.

Separatetoaccumulate

Oilwaterseparationequipmentrepresentsthelargestsegmentofthemarketforproducedwatertreatment,andwillbeworthanestimated$2.1Bin2014.Thisreflectsthe
necessityofseparatingoil,gasandwaterstreamsinallareasofproduction.

AccordingtoWaterforOnshoreOilandGastheadvancedtreatmenttechnologiesarepredictedtobethefastestgrowingareaofthismarket,withapredictedannualgrowth
rateof20%.Thetechnologiesexist,andhavealreadybeenusedincoalseamgasproducedwatertreatmentinAustralia,andforreusingwaterintheCanadianoilsands.

GWIsnewreport,WaterforOnshoreOil&Gas:Opportunitiesinproducedwatermanagement,hydraulicfracturingandenhancedoilrecoveryisavailablenow,pricedat
2,200/$4,000.Formoredetailsonhowtoorder,pleaseseetheadvertoppositeorcontactChantalMarchesiatcmarchesi@globalwaterintel.com.

SOURCE:GlobalWaterIntelligence

Likewhatyouarereading?
EnterYourEmail SIGNMEUP
Signupforourfreenewsletter

ByclickingSignMeUp,youagreetoourTerms(/static/Legal)andthatyouhavereadourPrivacyPolicy(/static/Privacy).

RecommendedForYou

FlareGasFlow CanYourPipeSurviveAn TechnologyQualification HPDZeroLiquid

MeasurementAndControl Earthquake?(/doc/can OfLiquiCelMembrane Discharge(ZLD)Systems
(/doc/flaregasflow yourpipesurvivean ContactorsFor Brochure(/doc/hpdzero
(/doc/flaregasflow (/doc/canyourpipe (/doc/technology (/doc/hpdzeroliquid
measurementand earthquake0001) DeoxygenationOfLow liquiddischargezld
control0002) SalinityWaterForPolymer systemsbrochure0001)
Flooding
(/doc/technology
qualificationofliquicel
membranecontactorsfor
measurementand surviveanearthquake qualificationofliquicel
deoxygenationoflow dischargezldsystems
salinitywaterfor
polymerflooding0001)