WELLESLEY, MA, Aug. 31, 2015 -- According to a new report from BCC Research, the North American market for produced water treatment equipment (PWTE) is thriving as many factors work to spur growth. The findings show that key market drivers include rising demand for water conservation, increasing environmental awareness and regulation, and growing use of water in oil and gas production due to prospering technologies like hydraulic fracturing.
The study, "The North American Market for Produced Water Treatment Equipment," forecasts a five-year compound annual growth rate (CAGR) of 8.2 percent from 2015–2020, leading to a global market size of $1.6 billion in the end year. Produced water is the highest volume of liquid discharge generated during the production of oil and gas. It includes water that is present naturally in the reservoir (formation water or connate water), water previously injected into the reservoir (floodwater) and condensed water from gas production.
The oil and gas industry significantly impacts the PWTE market. PWTE for oil fields accounts for 77 percent market share, while gas fields compose the remaining 23 percent. In 2020, market share is projected to shift slightly as oil fields and gas fields will own 79 percent and 21 percent of market share, respectively. During the forecast period, oil fields should realize an estimated 8.7 percent CAGR, while gas fields will achieve a slightly lower estimated CAGR of 6.2 percent.
The world's energy markets are continually expanding, with oil and gas companies spending billions each year to maintain and increase oil production. In some regions, hydraulic fracking has increased dramatically. The technology, which receives much scrutiny because of its large water requirements and potential environmental hazards, has spurred a big push toward conserving and reusing produced water.
"With water becoming more precious, increased environmental awareness and a number of other factors, produced water is increasingly being treated for use as a beneficial resource,' said BCC Research Analyst Nana Lapham. "Produced water from fracking operations can be reused after settling, filtration or other types of primary treatment methods to greatly reduce freshwater use and other associated fees and costs. More advanced treatment may be used to treat produced water with high TDS levels, although there may be high costs and energy requirements for some treatment technologies."