Oil And Gas Separation Equipment Market Size, Share & Trends Analysis Report By Product (Degasser, Scrubber, Heat Treaters, Deliquilizer), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global oil and gas separation equipment market size was USD 7.88 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% from 2023 to 2030. Increasing production and exploration activities along with substantial investment in refining are propelling market growth. Growing petroleum industry particularly in the Middle East & Africa and North America is anticipated to drive the market over the forecast period. Increasing Exploration & Production (E&P) activities in the U.S., Indonesia, Venezuela, China, Nigeria, and Canada has been the major factor contributing to increased separation techniques requirement over the past few years.

Most of the fluids extracted from these reserves require onsite treatment and pre-processing before sending to offsite processing facilities and refineries for effective transportation. Increasing onsite processing requirements along with large unexplored hydrocarbon reserves in regions such as North Sea and Gulf of Mexico are expected to drive processing industry, which in turn is expected to fuel equipment demand over the forecast period.

Achieving a continuous flow of liquid fuels and gas is a critical factor in the production of crude oil and natural gas. As E&P activity increases, the demand for separators to meet these requirements is expected to grow rapidly. This is due to the large number of separators being installed onshore, off-shore and in refineries, as well as the increasing environmental concerns and large-scale offshore exploration.

Increasing E&P in deep sea and ultra-deep sea coupled with high yield from unconventional hydrocarbon reserves such as tight gas, shale, and CBM has increased oil and gas production. Owing to unique dynamics of oil & gas fields, specific separation techniques and equipment are required. Growing environmental concerns coupled with increasing government regulations to maintain optimum levels of oil in water and water in oil for pipeline grades have led to standardization of separation levels. This in turn has bolstered oil & gas separation equipment demand.

Stringent regulations regarding disposal and reuse of produced water for several applications have mandated onsite processing of formation fluids. Increasing TDS content in produced water may further impose serious environment impacts. Hence there is a growing liability of oil & gas producers to judiciously treat formation fluids before disposing or reusing the waste stream. This is expected to bolster market growth over the forecast period.

Product Insights

Based on products the market is segmented into two phase separators, three phase separators, degasser, scrubber, deliquilizer, heat treaters and others. Three-phase separator was the largest product segment and accounted for 42.2% of the total market in 2022 and is expected to grow at the fastest CAGR of 3.7% over the forecast period. This separation equipment has added advantages over two-phase separators in terms of optimum pressure and liquid sealing. Increasing production in associated oil & gas wells coupled with high priority for produced water treatment is estimated to drive three-phase separators demand over the forecast period. Rising oil production from shale plays and coal bed methane fields is anticipated to augment product demand over the forecast period.

Two-phase separator is anticipated to witness lucrative growth in terms of demand over the forecast period. These separators are installed at oil field to separate the well fluids into gas and total liquids. These equipment are generally used for primary treatment of formation fluids mainly in onsite facilities mainly for high gas to oil ratio (GOR) reservoir characteristics.

Scrubber is expected to witness rapid growth over the forecast period. Stringent government norms for maintaining flare gas quality and maximum suspended particulate matter content in pipeline fluids is estimated to positively impact market expansion over the next few years

Regional Insights

North America dominated the global oil & gas separation equipment market with a revenue share of 36.9% in 2022. North America oil & gas industry is characterized by heavy capitalization of assets in both onshore and offshore reserves. Rising shale plays and coal bed methane production in the region is anticipated to bolster equipment demand over the forecast period. Increasing offshore E&P along with new explorations in Baken oilfields is expected to fuel market growth over the next few years.

Asia Pacific is anticipated to witness growth in the coming years owing to rising E&P activities in countries such as China, Indonesia, Taiwan, Malaysia, Vietnam and India. Increasing government initiatives to exploit hydrocarbon reserves sustainably by providing financial aid in terms of FDI and tax benefits particularly in China and India is anticipated to drive market penetration in these regions over the next few years. Large unexplored hydrocarbon reserves along with discovery of shale reserves in China are projected to fuel oil and gas separation equipment market over the forecast period.

Middle East and Africa (MEA) is anticipated to grow at the fastest CAGR of 4.8% over the forecast period owing to rising E&P activities and accounting for highest crude oil production. MEA countries have altered their spending habits and begun to allocate substantial resources to their oil and gas refineries. Increasing government initiatives to exploit hydrocarbon reserves sustainably by providing financial aid in terms of FDI and tax benefits is anticipated to drive market growth. The United Arab Emirates (UAE) state-owned oil company, Abu Dhabi National Oil Company (ADNOC), was granted a USD 122 billion investment program in November 2020 by Supreme Petroleum Council of Abu Dhabi. This program is set to run from 2021 to 2025.

Key Companies & Market Share Insights

The industry is moderately fragmented with presence of several local and small-scale participants. Major companies are increasing their product offerings and investing heavily on R&D for developing multi-functionality equipment with high complexity to handle a wide assortment of fluids. This is anticipated to enhance their industry preference and hence increase their market share over the foreseeable future. Some prominent players in the global oil and gas separation equipment market include:

• Worhtington

• Alpha Laval

• Amacs

• Burgess-Manning, Inc.

• ACS Manufacturing

• BNF Engineering Pte Ltd.

• eProcess Technologies

• HAT International

• Godrej Process Equipment

• Honeywell

• Fenix Process Technolgies Pvt. Ltd.

• CAT Tecgnologies

• Doyle Dryers LLC

• ATLAS Oil & Gas Process Systems Inc.

• Valerus

Recent Developments

• In March 2022, Schlumberger reported a significant contract with Saudi Aramco for well construction and integrated drilling services in a gas drilling project. The scope of the project included drilling rigs, gas separation, and logging during drilling.

• In January 2022, Woodside awarded a contract to McDermott International for engineering, procurement, construction, installation, and commissioning services (EPCIC), as the operator on behalf of the Scarborough Joint Venture, for the construction and commissioning of an FPU (Floating Production Unit) in the Western Australian offshore area. The scope of the integrated scope includes design, fabrication, gas separation, transportation, etc.

Oil And Gas Separation Equipment Market Report Scope

Global Oil And Gas Separation Equipment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global oil and gas separation equipment market report on the basis of product, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Two Phase Separators

  • Three Phase Separators

  • Degasser

  • Scrubber

  • Deliquilizer

  • Heat Treaters

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Central And South America

    • Brazil

    • Argentina

  • Middle East And Africa

    • Saudi Arabia

    • South Africa

    • UAE