Growing importance of water management in the oil & gas sector as a result of stringent environment regulations aimed at reducing effluent is expected to have a favorable impact on the market. Furthermore, rising expenditure towards the development of nanomaterials in the formulation of membranes for the oil-water-gas-separation process is projected to promote the application of produced water systems as a tool for increasing productivity.
Regulatory support in the U.S. and Canada for E&P of alternative sources including shale gas and tight oil to reduce the impact of depletion in crude oil reserves is expected to play a significant role in promoting the usage of produced water treatment services. In February 2016, Saudi Aramco announced plans to tender contracts worth USD 500 million to SNC-Lavalin for E&P in shale gas fields in North of Saudi Arabia. The above mentioned favorable regulatory inclination towards the development of shale gas in Saudi Arabia is expected to promote the produced water treatment services demand.
Over the past few years, the developing countries including China and India are shifting focus on reducing reliance on imports of crude oil and natural gas. As a result, governments of the abovementioned countries and state-owned companies of oil & gas including ONGC and Sinopec are increasing E&P on crude oil and natural gas to enhance the production output and reducing dependency on imports. This favorable scenario in oil & gas sector of China and India is expected to open new markets for produced water treatment services over the next eight years.
Population growth, economic development, and industrialization in Middle East countries are projected to augment crude oil and natural gas demand over the next eight years. In May 2016, Kuwait Petroleum Corporation announced plans to increase crude oil production output by 44% to almost 4 million barrels per day by the end of 2020. This program is expected to promote the usage of produced water treatment services over the next eight years. However, Lack of adoption of water treatment technologies in light of the absence of regulations on water management systems in the major petroleum destination including Saudi Arabia is expected to remain a challenging factor over the next eight years.
Service innovation and the establishment of the partnership with upstream oil & gas company are projected to remain critical success factors over the next eight years. In May 2016, GE company launched a new ultra-filtration membrane named ZeeWeed 700B especially for offshore application in oil & gas sector. This new filtration media cuts down the operating costs as well as carbon and water footprint and enhances the energy efficiency rates.
Related Reports by Grand View Research:
Produced Water Treatment Market : https://www.grandviewresearch.com/industry-analysis/produced-water-treatment-market
Shale Gas Market : https://www.grandviewresearch.com/industry-analysis/shale-gas-industry