The global demand for oil and gas increases with the increase in world population especially with the enhanced demand for electricity, automobiles, improved housing and other energy consumption methods in the developing nations. According to the International Energy Association (IEA), the natural gas will have a golden future especially for coalbed methane (CBM) and shale gas and will also require golden standards for production. Further, the wastewater from fracking operations will require treatment for beneficial use which further accelerates the global fracking water treatment equipment market. Moreover, the increased importance of water and drought conditions are generating need to develop equipments to recycle wastewater and expediting the growth of global fracking water treatment equipment market.
Furthermore, Ernest Moniz, the US Energy Secretary said, “there are increasing tensions between energy and water at oil & gas conference and acts as a reminder of growing importance of water in energy.” Further, there have been gallons of water consumption in the oil & gas drilling process reducing the water level and resulting to drought conditions. Due to these reasons, there has been a rapid demand for wastewater treatment and fracking water treatment equipment market.
The global market for fracking water treatment equipment is mainly driven by the scarcity in the fresh water supplies and high demand for water. The conflicts associated with the water have further fuelled the market and have led to the development of water recycling equipments. These demands from across the world are embellishing the fracking market and providing ground for innovative water recycling technologies. The average natural gas reserves require approximately five gallons of water for drilling and fracking, depending upon the site. Further, the International Energy Agency (IEA quoted that by 2035, the water used for natural gas production will increase by 86%.
This trend will amplify the need for R&D activities to develop equipments for wastewater treatment and will drive the overall fracking water treatment equipment market. Moreover, the oil and gas drillers are pushed by the prospects of regulations and competition over water resulted in on-site water treatment and increasing demand for hydraulic water treatment equipments. Further, some of the reuse applications are costlier which limits the application in the saline water treatment and transporting it to the end-users. On the other side, the equipment sale in the water-scarce areas where the options of alternative sources are limited and have stringent regulatory aspects, have opportunity for the global fracking water treatment equipment market.
Another opportunity of the global fracking water treatment equipment market is the centralized approach to treat the wastewater which provides treatment for the full life cycle of wells. This helps in saving gallons of water and is gaining momentum in the North American market servicing shale oil and gas industry.