The demand for water management services in the oil & gas industry is experiencing substantial growth and will continue to grow in the coming years. The productivity of oil wells has significantly decreased in the past few years. This has changed the process of exploring oil & gas, giving rise to processes such as horizontal drilling and hydraulic fracture. These processes require extensive amount of water, thus being the key driver in the growth of water management services for oil & gas market. Water is an essential component in exploration and production operations in the oil & gas industry. This has resulted in a rapid increase in the demand for efficient water management services in oil & gas exploration and production sector. The increasing number of oil wells across the globe further increase the demand for water management service in the oil & gas sector. The key players of the industry are focussing on development of new water management systems for oil & gas industry as a strategy to diversify their product portfolio.
Description
Water management services for oil & gas industry are the systems that deal with supply and of water to all processes involved in oil & gas exploration and production operations. Water management service providers help exploring and refining companies by locating a source of water in the vicinity of oil or gas exploration sites, transportation and usage of water throughout the production operations and the treatment and disposal of used contaminated water. Water is a vital component of unconventional exploration and production process; thus, ensuring the rapid growth of water management service for the oil & gas market throughout the forecast period.
COVID-19 impact analysis
- COVID-19 had affected the use of vehicles and also reduced the requirement for logistics and transportation in the second quarter of 2020 due to restrictions laid by governments to contain the spread of COVID-19. Thus, major oil & gas producing nations, decreased the exploration and production of oil & gas; thus, negatively affecting the water management services for oil and gas market.
- The major demand for water management services for oil and gas industry was previously noticed from the U.S., China, India, Russia and OPEC countries, which are negatively affected by the spread of coronavirus; thereby, declining the demand for water management services for oil & gas industry.
- The companies providing water management services for oil & gas industry are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Water management service providers can afford declining revenue only for a few months, after which the players have to modify their investment plans. For instance, few players have adopted employee lay-offs to sustain during the COVID-19 health crisis.
- With increasing vaccination drives and leniency in social restrictions, the demand for oil and gas has increased, which is a boost for the water management services for oil and gas industry.
Top Impacting Factors
The exponentially increasing population and industrialization has drastically increased the requirement of oil and gasoline which has rapidly increased the number of oil rigs and refineries over the past few years. The decreasing productivity from conventional oil and gas exploration methods and the rise of unconventional exploration methods such as horizontal drilling and hydraulic fracture which require extensive use of water are the major driver in the growth of water management services for oil and gas industry. Water is extensively required for of the cooling the drilling equipment, removal of broken rock and mud and in for hydraulic fracturing of rock. The requirement of water for exploration and production (E&P) process depends on the properties of the oil and gas fields, for instance, a hydraulic fracturing process for conventional E&P requires around 25,000 barrels of water while hydraulic fracturing for unconventional E&P may require as much as 2,50,000 barrels of water throughout the process. This further highlights the demand for an efficient water management system. The environmental impact by the use of fossil fuels is a major restraint in the growth of water management services for oil and gas market. The accessibility to previously inaccessibly oil and gas field ensure substantial growth of water management services for oil and gas market throughout the forecast period.
Market Trends
- The frac water (water used for hydraulic fracture process) per well used in lateral drilling was 600,000-billion-barrel liters as of 2018, which was 75,000-billion-barrel liters. This trend is going to increase further in the coming years due to the development activities in the shale reserve.
- The key players of the industry are determined to develop more efficient water management systems with the integration of artificial intelligence.
- The rig count in US reached 1032 in May 2018 from 665 in January 2017, which makes North America a major market for water management services for oil and gas industry.
- Aquatech has partnered with Occidental Petroleum Corporation’s OXY to design and construct a fully-integrated and automated system incorporating multiple effect Mechanical Vapor Compression (MVC). When commissioned, this water treatment facility will be one of the world’s largest water treatment systems.
Key Benefits of the Report
- This study presents the analytical depiction of the water management services for oil and gas industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the mobile water management services for oil and gas market share.
- The current market is quantitatively analyzed to highlight the water management services for oil and gas market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed water management services for oil and gas market analysis based on competitive intensity and how the competition will take shape in coming years.
Water Management Services for Oil and Gas Market Report Highlights
| Aspects | Details |
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 By Location |
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 By Application |
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 By End User Industry |
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 By Business |
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 Key Market Players | Veolia, Granite Construction Inc., Schlumberger Limited, Baker Hughes Company, WSP, Aquatech International LLC., Severn Trent Services, Halliburton Company, Bain & Company, Inc., Ecolab |
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