Onshore Produced Water Management Market to Increase Substantially
Produced water has been an issue in the oil & gas industry for some time, but ever increasing water cuts, treatment costs, regulation and water scarcity has meant this topic has been propelled further into the limelight. Currently the total value of the global onshore produced water management market is estimated to be $59 billion and is expected to increase substantially over the next eight years.
OTM Consulting & Douglas-Westwood estimate in their new World Onshore Produced Water Gamechanger Market Report 2012-2020 that, 241 million barrels of produced water associated to oil and gas operations are globally generated every day and by 2020 production is expected to grow by 21% to 292 million barrels. Chris Jones; report author and Consultant at OTM, commented, “While the major producing regions are expected to remain dominant through to 2020, they are not all growing at the same rate. Regionally, North America is set for substantial growth, due to the produced water associated with Canadian heavy oil, US shale, and US conventional markets. The Middle East is a large and rapidly growing market in terms of water production, however, the estimated cost to treat a barrel of water is minimal, which helps explain its relatively small size. In contrast, the European market has the highest estimated cost per barrel but produces far less water onshore”.
“The complexity of the treatment market is derived from the numerous constituents and treatment specifications required with produced water from different production scenarios and geographical regions. Eighty-five percent of the produced water generated onshore in association with conventional oil and gas extraction is re-injected, mostly due to the dominance of hydrocarbon production. Although water produced in this category is dominant and is predicted to grow over the next eight years, it is expected to grow at a slower rate than other categories made up of conventional (surface discharge and re-use), shale gas and heavy oil.”