“There is room for a large number of small specialist suppliers as well as the large established ones...because the nature of the challenge varies so much according to geography, geology, local regulation and the type of resource.
Oxford, UK (PRWEB) May 17, 2011
A new study from Global Water Intelligence, Produced Water Market : Opportunities in the Oil, Shale and Gas Sectors in North America, shows that the total value of the US produced water market is set to grow from $5.0 bn in 2010 to $9.9 bn in 2025, at 4.7% annually. But within this sector, the produced water treatment equipment market will grow from $693 million in 2010 to $2.9 billion, an annual growth rate of 10.1%, and the desalination technologies market, currently worth $59 million, will enjoy the fastest growth rate, averaging 20.4% per year.
Conventional oil production has peaked in the US onshore oil industry but the produced water management market will continue to grow, the report says, due to an increasing water to oil ratio (WOR) and because new, unconventional sources of oil and gas have additional produced and process water needs. GWI’s report focuses on just one aspect of this: the produced water treatment market.
The report shows in detail that demand for advanced water treatment technologies is expected to grow most quickly in four main sectors of the market: 1) Conventional oil fields 2) Enhanced oil recovery techniques 3) Shale gas industry 4) Oil sands industry. The technologies which will do best in this new market are likely to be both membrane and thermal desalination technologies, filtration systems and biological treatment systems.
However, publisher Christopher Gasson warns of a number of challenges, especially for seawater desalination technology companies looking to take advantage of these growth opportunities:
“There is a different objective here, switching the focus from the production of potable water to the reduction of a waste stream. Establishing themselves as credible suppliers without a track record will be difficult in this highly conservative oil & gas market, which is why the three main water technology companies that have entered this market (Veolia, GE Water and Siemens) have done so through acquisition rather than organic growth”.
“But”, Gasson added, “there is room for a large number of small specialist suppliers as well as the large established ones because the nature of the challenge varies so much according to geography, geology, local regulation and the type of resource. There are also specific niche opportunities with strong prospects. Companies may outsource where the treatment need is cutting-edge or temporary, and there is a development need for more efficient low-energy/high recovery desalination techniques and better initial oil/water separation technologies. There is also an opportunity here for someone that can offer oil & gas separation as well as tertiary treatment – the complete package”.
The report suggests that companies that could expect accelerated growth in this sector include Cameron, Heckmann, Nalco, Aquatech, FilterBoxx, Aqua Pure, Hydration Technologies and Water Standard Company.
GWI’s new report is the first of a new series of Primary Research reports from GWI this year; forthcoming titles are Water for Mining, Energy from Waste, and Sludge Management.