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Frost & Sullivan: The Chance of Long-term Natural Gas Buoys Wastewater Treatment Equipment in the Shale Gas Industry


News provided by

Frost & Sullivan

12 Jul, 2012, 13:27 GMT

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- Equipment providers must focus on technology to meet the need for enhanced water management, within stringent regulations

MOUNTAIN VIEW, California, July 12, 2012 /PRNewswire/ -- The North American wastewater treatment equipment market in the shale gas industry is expected to achieve steady growth once the utility market and oil and gas industry gets accustomed to the increasing environmental regulations in the market. Uncertainty over the existing coal power plants, due to new strict regulations focusing on efficiency and reduction in capital costs, coupled with stagnant recovery from the economic recession is likely to slow down market growth until at least 2014.

New analysis from Frost & Sullivan's (http://www.environmental.frost.com) Analysis of the Wastewater Treatment Equipment Market in the North America Shale Gas Industry research finds that the market earned revenues of $246.5 million in 2011 and estimates this to reach $353.6 million in 2018.

If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at britni.myers@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Oil and gas companies are looking for enhanced water management solutions and techniques given the high water consumption during the hydraulic fracturing and horizontal drilling processes on a frac site. Additionally, increasing environmental concerns for wastewater disposal and the recent air emissions control set by the Environmental Protection Agency (EPA) necessitate a more strategic approach to treat produced and flowback water.

Drilling for unconventional gas has exponentially grown from 2005 onwards and has changed the long-term strategy for many industries. However, in the last few years, poor demand for natural gas has meant gas prices have dropped to as low as $2.00 per million British Thermal Units (MMBtu). This has forced many oil and gas companies to scale back drilling in dry shale plays and focus on liquid-rich shale plays such as Eagle Ford, Texas; Utica Shale, Ohio; and Bakken Shale, North Dakota.

"Oil and gas companies are also likely to reduce spending in undeveloped areas and instead focus on regions where the company either has an existing presence or one that is likely to generate positive return," said Frost & Sullivan Industry Analyst Ankur Jajoo. "The reduction in drilling will mean the expected growth opportunity for wastewater treatment equipment remains steady for the short-term as the market recovers."

Thermal distillation and evaporators; crystallization and zero liquid discharge systems; flocculation and clarifiers; and disinfection equipment are portrayed as areas for long-term growth.  These technologies are also likely to see the integration of pre-treatment options into more modular designed systems over an extended period.

"As the market is still an emerging one, treatment equipment is currently being tried and tested by different companies at various basins to find the optimal solution for different levels of contaminants," said Jajoo. "Growth in this industry segment can be catalyzed by focusing on the successful development of more energy efficient, compact treatment solutions."

Analysis of the Wastewater Treatment Equipment Market in the North America Shale Gas Industry is part of the Environment Growth Partnership Services program, which also includes research in the following markets: Strategic Profiles of the Leading and Emerging Companies in the Global Water Industry, Hazardous Waste Management, Outsourcing Opportunities in the North American Municipal Water Sector, United States Water and Wastewater Treatment – Regional Opportunity Analysis (Northeast), and North American On-Site Hypochlorite Generation Technology Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Wastewater Treatment Equipment Market in the North America Shale Gas Industry
NAC8-15

Contact:
Britni Myers
Corporate Communications – North America
P: +1-210-477-8481
F: +1-210-348-1003
E: britni.myers@frost.com

http://www.frost.com

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