Product Code: 53677
The global oil and gas water management services market is expected to grow at a CAGR of greater than 8.3% over the period of 2020-2025. Factors such as advances in oil & gas recovery techniques to produce energy from unconventional resources have increased the crude oil and natural gas production. Moreover, these production activities involve utilization of huge amount of water and hence is expected to drive the water management services market. Owing to environmental concerns, oil & gas industry has been facing serious oppositions related to water usage by concerned authorities and local inhabitants. As a result, the rising environmental concerns for water usage in the oil & gas industry is expected to increase the need for better water management services during the forecast period. However, high cost associated with water management services is expected to restrain the market growth.
- The upstream sector, having the largest share in the market, is expected to provide huge thrust to the oil and gas water management services owing to the increasing E&P activities and capital expenditure.
- Investments in the oil & gas deep water and ultra-deep water drilling activities, such as Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico, are actively promoting the development of deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
- North America having a large share of oil & gas production and hydraulic fracturing activity is expected to the fastest growing in the global oil & gas water management services market during the forecast period.
Key Market Trends
Upstream Sector to Dominate the Market
- Upstream oil and gas sector accounts for the largest share in the oil and gas water management services. The increased horizontal drilling activity and growing lateral length has translated into the significant demand for water management services in the recent past.
- Though the number of produced wells globally has increased significantly in the last few years, the declining oil and gas production from matured conventional oil and gas fields has resulted in a moderate growth of the volume of produced water.
- Around 100 offshore projects were sanctioned in 2018, up from 60 in 2017 and 40 in 2016. The increasing number of projects is expected to result in increased demand for water management services in the offshore sector.
- The Saudi government has invested on up scaling the production of hydrocarbons and maintain the dominance in the global oil & gas business. Moreover, the country has also invested in the upstream infrastructure. Therefore, the water management services market in upstream and midstream industry in the country is expected to register a substantial growth rate, during the forecast period.
- In the onshore segment the market is led by the United States and in the major offshore demand is expected to come from Brazil, Gulf of Mexico, North Sea, and West Africa.
North America to Dominate the Market
- Over 80% of the global hydraulic fracturing activity takes place in this region. The hydraulic fracturing process involves a large amount of water injection and, hence, water management services are essential in this process to minimize the environmental impact.
- Owing to a large share of oil & gas production and hydraulic fracturing activity, North America is a market leader in the global oil & gas water management services market. This region is expected to experience a significant growth rate during the forecast period, owing to a positive outlook in the United States and Canada.
- The United States is expected to experience a substantial growth in oil and gas activity, owing to increasing level of production from Permian basin of Texas and the Gulf of Mexico. Canada, with stability in oil prices, is expected to experience increase in investments in the oil & gas industry, allowing private players to explore some of its most prominent oil sand reserves.
- Additionally, over the past decade, the lateral lengths of the unconventional wells drilled in the United States, have increased from 2,500 feet to nearly 7,000 feet. Each unconventional well, on average, is being drilled with more hydraulic fracturing stages per lateral length.
- As of 2018, the frac water per well used in lateral drilling is approximately 600,000 billion barrel liters (bbls), which was around 75,000 bbls between 2008-2010. This trend is ongoing due to increasing development activities in the shale reserve and is further expected to drive the market in the coming years.
The oil and gas water management services market is moderately fragmented. Some of the key players in this market include Halliburton Co., Baker Hughes Co., Ovivo Inc., Schlumberger Ltd and Aquatech International LLC.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2025
- 4.3 Global Oil & Gas Production Forecast until 2025
- 4.4 Global Oil & Gas Consumption Forecast until 2025
- 4.5 Recent Trends and Developments
- 4.6 Government Policies and Regulations
- 4.7 Market Dynamics
- 4.7.1 Drivers
- 4.7.2 Restraints
- 4.8 Supply Chain Analysis
- 4.9 Porter's Five Forces Analysis
- 4.9.1 Bargaining Power of Suppliers
- 4.9.2 Bargaining Power of Consumers
- 4.9.3 Threat of New Entrants
- 4.9.4 Threat of Substitutes Products and Services
- 4.9.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Sector
- 5.1.1 Upstream
- 5.1.2 Downstream
- 5.2 Services
- 5.2.1 Water Disposal Services
- 5.2.2 Water Hauling Services
- 5.2.3 Produced Water Treatment Services
- 5.2.4 Others
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 South America
- 5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Aquatech International LLC
- 6.3.2 Baker Hughes, a GE Company
- 6.3.3 Granite Construction Inc.
- 6.3.4 Halliburton Co.
- 6.3.5 Nuverra Environmental Solutions
- 6.3.6 Ovivo Inc.
- 6.3.7 Schlumberger Ltd
- 6.3.8 Severn Treatment Services Ltd.
- 6.3.9 Veolia Environnement SA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS