In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
A high-pressure oil and gas separator are a spherical or cylindrical pressure vessel used to separate oil, water, and gas from the fluid stream produced by an oil well. In order to produce the hydrocarbons, the most fundamental part is separation. The operating principle of separators is that the lightest fluid rises to the top while the heaviest fluid settles to the bottom. It is installed either on an offshore platform or on an onshore processing station. High pressure separators can handle pressures ranging from 975 and 1500 psi.
Based on product type, they can be categorized into two-phase and three-phase, wherein the two phase type typically deals with oil and gas and the three phase type deals with water, oil and gas. On the basis of specific application, a high-pressure separator is also known as a degasser or deliquilizer. Degassers is used to remove gas bubbles from liquid stream, while deliquilizers are used to remove dispersed liquid droplets from gas stream. Based on vessel type, horizontal high-pressure oil and gas separators are suitable for high gas-oil ratios and constant flow well-streams, while vertical separators are designed mainly for intermediate gas-oil ratios. The degree of separation between liquid and gas depends on certain factors, such as operating pressure of the separator, type of flow of the fluid i.e. turbulent flow or laminar flow, and fluid mixture residence time.
High pressure oil and gas separator market is expected to witness moderate growth on the back of rising growth in unconventional oil and gas resources, particularly shale gas and oil reserves. Global high-pressure separator market is expected to record a CAGR of 1.05% over the forecast period.
The market is segmented by product type (two-phase separator, three-phase separator, degassers and deliquilizers); by vessel type (horizontal, spherical, vertical); by application (on-shore, off-shore, refineries). Based on application, the primary use of the product is concentrated in the upstream industry. Based on vessel type, horizontal vessel segment has the largest share since these vessels can handle large volumes under high pressures, and countries such as Venezuela, Saudi Arabia, and Canada have high demand for them.
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Growth in unconventional resources, mainly shale gas and oil reserves along with large investments in exploration and production activities is set to drive the market for high pressure oil and gas separators. Moreover, prevailing and upcoming installation of off-site and on-site processing facilities is also expected to boost the demand for the product.
Oil and gas separator manufacturers are conducting R&D activities to reduce the equipment cost and increase efficiency. The overall efficiency of high-pressure separators is largely dependent on the nature of the inlet devices. There are a range of inlet devices available with diverse working mechanisms.
Dipping global crude oil prices and unpredictability of the oil and gas industry has led to a reduction in exploration, drilling and production activities. For instance, Baker Hughes reduced rotary rigs by 21 to 934 in September 2016 from May 2016. This is 206 rigs lower than September 2015. The drastic reduction in the number of operational rigs can be attributed to weakened oil prices and increased rig efficiencies. Huge cuts in the capital budget of E&P companies coupled with emergence of non-conventional and renewable sources of energy are other factors to hamper industry growth.
Our-in depth analysis of the high-pressure oil and gas separator market includes the following segments:
On the basis of regional analysis, the global high-pressure oil and gas separator market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America accounts for the significant market share among other regions owing to the rise in discovery of multiple reservoirs of shale oil and gas and rising offshore exploration activities in the region. Additionally, the region is witnessing an increased production from existing reserves on account of recent fall in oil prices.
Asia Pacific is also expected to register significant growth owing to constantly increasing the population and high rates of urbanization. Countries such as China, Malaysia, Indonesia, India and Vietnam are yet to realize its complete potential.
The high-pressure oil and gas separator market is further classified on the basis of region as follows: