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Aging Oilfields Stoke Demand for Highly Efficient Produced Water Treatment Systems Finds Frost & Sullivan - Burgeoning potential in the Southeast Asian market encourages more intensive R&D and investments - Environmental.Frost.com
Aging Oilfields Stoke Demand for Highly Efficient Produced Water Treatment Systems Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Kuala Lumpur, Malaysia, 2014/11/24 - Burgeoning potential in the Southeast Asian market encourages more intensive R&D and investments - Environmental.Frost.com.

   
 
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The rising number of mature oil fields in Southeast Asia has intensified the focus on produced water (PW) treatment technologies that are both cost efficient and effective. Unlike new oil and gas (O&G) wells that generate minimum water cut (ratio of water to the overall volume of liquids produced), wells that are 20 to 30 years old have water cuts in the range of 80 percent to 90 percent. This translates to an escalating need for PW treatment technologies in the region.

New analysis from Frost & Sullivan, Produced Water Treatment Market in Southeast Asia, finds that the market earned revenues of US$275.0 million in 2013 and estimates this to reach US$357.7 million in 2018, at a compound annual growth rate of 5.4 percent. The technologies for PW treatment include hydrocyclone, gas flotation, and walnut shell media filters, among others.

While the need for PW treatment systems is growing, their prohibitive costs are pegging back adoption to some extent. The costs of PW treatment varies depending on the region, method of treatment, volume of PW, amount of contaminants present in the water, utilities’ size, and location of equipment.

Due to the many complexities of PW treatment, suppliers have been compelled to engage in continuous R&D to identify suitable treatment methods and equipment.

“There is a need for oil field operators to reach out to suppliers and manufacturers to arrive at more viable and cost-effective methods of PW treatment and reuse/recycle,” said Frost & Sullivan Energy & Environmental Research Associate Harpreet Kaur. “This could eventually create a platform for new technologies to be launched and improved upon.”

Apart from aging oil fields, price changes in the Southeast Asian markets will also be driven by government regulations and O&G operators’ desire to maximize profits from their overall operation. Enhanced oil recovery (EOR) and PW reinjection are particularly gaining traction among market participants. This is because treated PW can add value to the oil field by increasing oil recovery through the reinjection process.

“Meanwhile, governments across Southeast Asia are attracting more investments to the O&G industry through incentives for exploration and extraction,” noted Kaur. “The greater volumes of oil production will cause a concurrent rise in PW generation, giving a fillip to the overall market.”

Governments have also introduced stringent regulations regarding effluent discharge, prompting O&G operators to invest in advanced treatment technologies. These initiatives, along with Southeast Asia’s water conservation strategies, are expected to give a significant boost to the region’s PW treatment market.

Produced Water Treatment Market in Southeast Asia is part of the Environmental (environmental.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Industrial Waste Management Services Market, Strategic and Innovation Priorities for Australian Water Utilities, Global Residential and Light Commercial Water Treatment Equipment Market, and Point of Use Water Purifier Market in India. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Produced Water Treatment Market in Southeast Asia / P80E-15

Melissa Tan
Corporate Communications Asia Pacific
P: +65 6890 0926 / F: +65 6890 0999 - E: melissa.tan[.]frost.com.

 
 
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Aging Oilfields Stoke Demand for Highly Efficient Produced Water Treatment Systems Finds Frost & Sullivan

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Frost & Sullivan | Produced Water Treatment
Publisher Contact: Donna Jeremiah / Carrie Low - Frost.com 
+61(2) 8247 8927 / +603 6204 5910 djeremiah[.]frost.com / carrie.low[.]frost.com
 
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