Crude Oil Desalter Market Trends

Growth Drivers

• Increasing Consumption of Crude Oil Globally – Demand for houses, public and personal transportation facilities, etc., is rising with the increase in global population. Also, the demand for crude oil is directly proportional to the growth of global energy demand and a multitude of other macroeconomic factors, ranging from disposable income to a rate of urbanization. Also, the consistent emergence of new petroleum refineries and production units with in-house crude oil desalting and dehydrating facilities is expected to accelerate the crude oil desalter market growth.

• Increase in Offshore Production of Crude Oil – Oil production evolved into a more complex process, moving from onshore to offshore in shallow waters, then from shallow waters to deeper oceans with harsher surroundings. The offshore drilling business has more difficulties than the onshore industry due to the environment it operates in, which drives the cost of producing oil. However, whether oil is produced onshore or offshore, the market price is the same.

• Increased Adoption of Desalter Equipment – The expansion of the crude oil desalter market will be driven by rising demand for desalter and dehydrator equipment to reduce the amount of salt and water in upstream and downstream processes. Calcium chloride, sodium chloride, and magnesium chloride are the three salts that are most frequently found in raw petroleum. Unrefined petroleum contains salts that cause corrosion and poison catalysts.

Challenges

• Growing Investment in Renewable Power Generation – The consumption and utilization of renewable power generation are increasing rapidly due to which the crude oil desalter market growth of crude oil desalter may restrain. In 2021, the world's power sector grew by 5%. Additionally, renewable energy dominated investments in the new generation, accounting for 70% of the USD 530 billion in total expenditures on all new generation capacity in 2021. Therefore, this factor may hinder the market growth during the forecast period.

• High Operating Costs May Hamper the Market Growth

• Lack of Skilled Labour may Restraint the Market Growth