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Reinjection Set to Emerge as Preferred Produced Water Treatment Mechanism in Oil and Gas Industry

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Produced water treatment refers to the various methods used to deal with water encountered during oil and gas exploration. Petroleum sites usually contain
natural gas and oil along with highly saline water, sometimes in separate zones or sometimes even as a mixture. This water emerges when oil drilling
equipment taps into the reservoir.

Browse the full Global Produced Water Treatment Systems Market Report

Produced water is considered as an industrial waste, since it is too saline to be used for drinking or agriculture. The conventional method of dealing with
produced water – simply letting it evaporate – is now banned, as it has severe repercussions on the wildlife in its surroundings. Thus, reinjection of
produced water back into oil wells has emerged as the perfect solution. Reinjection extends the lifespan of an oil well by forcing more oil into the
drilling zones and by balancing out the pressure created in the reservoir by the sudden removal of a large quantity of petroleum deposits.

Reinjection of produced water is becoming the standard rather than the outlier in the oil and gas industry. Out of the 201.4 billion barrels of produced
water produced in 2014, 34% were reinjected into oil wells. This figure is expected to rise steadily over the next few years. Some of the major reasons for
the growing trend of produced water reinjection are:

  • Growing Unconventional Oil and Gas Exploration
    : Deepwater and ultra deepwater petroleum exploration and oil sands, among others, are novel exploration mechanisms in the oil and gas industry and
    these are supported by the increase in oil production brought about by produced water reinjection.
  • Rising Oil to Water Ratio in Existing Oil Wells
    : Due to relentless oil production for decades, existing oil wells in many parts of the world have started to run dry. As a result, the amount of oil,
    with respect to the amount of produced water encountered, is decreasing. Though it may seem counterintuitive, the solution to this problem is more
    injection of produced water. This will draw out more oil to the drilling zones and increase the output of existing oil wells.
  • Water Scarcity and Regulatory Support
    : As mentioned before, the environmental impact of evaporation of produced water is enormous. As a result, oil and gas producers are now obliged to
    deal with produced water in a way that’s not dangerous to the environment or any wildlife in the vicinity of the oil drilling zones. This has led to
    the growing application of produced water reinjection, as it’s the simplest way of complying with these regulations. Scarcity of fresh water to use for
    reinjection is also one of the important reasons for the spread of reinjection.

Browse the full Press Release of Produced Water Treatment Systems Market

As a result of these factors, offshore reinjection of produced water is expected to rise at a robust CAGR of 23% from 2014 to 2020. Onshore reinjection
will also grow at a notable CAGR during the same period. Produced water disposal will be the slowest-growing produced water treatment segment during the
forecast period.