The Brazil oil and gas separation market was valued at $476.5 million in 2022 and is projected to reach $747.7 million by 2032, registering a CAGR of 4.9% from 2023 to 2032.
Oil and gas separation is the process of removing water and natural gas from oil. Oil, as derived in its natural form, is usually a mixture containing small amounts of water and natural gas. In order to extract pure oil or natural gas suitable for market supply, the mixture is first passed through a device that extracts the gas and directs it into a separation line. The remaining mixture of oil and water, containing a small amount of natural gas, is passed through a heating unit where the oil gets separated from the water owing to the difference in their density. Additional separation of oil from wastewater is done using hydro-cyclones that spin the mixture and use acceleration to separate the liquids.
Increase in production and drilling operations require more separators for separating oil and gas at the field before their transportation. The thriving oil and gas industry is one of the key factors driving the oil and gas separation market growth. Significant economic advancements emerging nations coupled with the rise in disposable incomes have led to the growth in demand for energy in Brazil. There has been a rise in the number of exploratory activities for conventional and non-conventional energy resources to meet this rapidly escalating demand. Furthermore, increase in production of shale gas and oil contribute to the demand for the Brazil oil and gas separation market.
In addition, governments explore sustainable options for oil extraction, which is expected to significantly drive the market growth. Upstream sector is expected to dominate the oil and gas separator market. The oil and gas separation market is primarily driven by the rise in environmental concerns about the emission of greenhouse gases, stringent governmental regulations for exploring sustainable options for oil extraction, and increase in demand for energy in Brazil.
Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP – Portuguese initials), recently reported record production for July 2023. According to reports from the agency, daily crude oil production of Brazil averaged 3.5 million barrels in July 2023. This figure marked a 4.3% increase and 18.6% surge as compared to the same period the previous year. Furthermore, the total hydrocarbon output reached a record high for July 2023, nearly 4.5 million barrels of oil equivalent. This represented a 3.6% uptick from the prior month and a substantial 17.5% rise year over year. It is worth noting that pre-salt petroleum production in July 2023 accounted for 75% of total oil output of Brazil. These statistics underscore the significant potential of offshore ultra-deepwater pre-salt oil basins of Brazil, which have been thedriving force behind this remarkable and consistent production growth. Hence, the above-mentioned factors are projected to drive the Brazil oil and gas separation market during the forecast period.
The offshore pre-salt oil fields of Brazil are poised for continued growth. Petrobras, the state-controlled oil company in which Brasilia holds nearly 37% ownership, has outlined a strategic plan spanning from 2023 to 2027. This plan places a strong emphasis on the development of deepwater and ultra-deepwater pre-salt assets. Notably, Petrobras has allocated a substantial budget of $78 billion investment in 2023, with a significant portion (83%) earmarked for exploration and development activities. Specifically, Petrobras plans to direct $41 billion of its total capital expenditure toward the development of pre-salt assets. According to Petrobras, this strategic focus is anticipated to lead to an increase in oil production to 2.5 million barrels per day by 2027, representing a noteworthy 19% growth compared to 2023.
Rise in discovery of multiple reservoirs of shale oil and gas and rise in offshore exploration activities propel the market growth. Increase in population and rise in demand for energy impacts on the demand for oil & gas separators. Oil & gas industry has seen significant advances in the oil & gas separator market. For instance, vendors introduce new inline separation technology. The inline separation technique is simple, cost-effective, easy to install, and requires less maintenance compared to conventional vessel-type separation technology. The inline separation technique is suitable for harsh production environments as well as new fields and retrofit applications. This boosts the oil and gas separation market owing to increase in demand from oil & gas industry.
Advancement in separation technologies, separators, membrane systems, and separation chemicals, have improved the efficiency of oil and gas separation processes. These innovations contribute to the growth of the market as companies seek to optimize production. The expansion of oil and gas exploration and production activities, both onshore and offshore, increases the demand for separation equipment and services. Separation technology plays a crucial role in extracting, processing, and transporting hydrocarbons as new reserves are discovered and developed. Stringent environmental regulations require oil and gas companies to reduce emissions, minimize waste, and prevent oil spills. Effective separation processes are essential to meet these regulatory requirements and avoid environmental fines and penalties.
Fluctuations in global oil prices are expected to impact investment in Brazil oil and gas separation market. High oil prices can incentivize companies to invest in more efficient separation processes to maximize hydrocarbon recovery. Growth in awareness of environmental issues and climate change has led to increased scrutiny of the oil and gas industry. Oil and gas companies are under pressure to reduce their environmental footprint, which is projected to drive investments in cleaner separation technologies. The demand for refined petroleum products, such as gasoline, diesel, and petrochemical feedstocks, contributes to the need for efficient separation processes in refineries and petrochemical plants. In summary, the oil and gas separation market are driven by a combination of factors related to supply and demand dynamics, technological advancements, regulatory compliance, and environmental considerations. The ongoing evolution of the oil and gas industry and the pursuit of more efficient and sustainable production processes continue to fuel the oil and gas separation market.
The Brazil oil and gas separation market bifurcated on the basis of gravitational separator product type and application. On the basis of gravitational separator product type, it is bifurcated into two-phase separators and three-phase separators. On the basis of application, the market is bifurcated into onshore and offshore. The major companies profiled in this report include SLB, NOV Inc., ABS Group, Sulzer Ltd, Halliburton, TechnipFMC plc and TORMENE GROUP.
Brazil oil and gas separation market, by gravitational separator product type
In 2022, the two-phase separator segment was the highest revenue contributor to the market, with $304.3 million in 2022, and is estimated to reach $469.3 million by 2032, with a CAGR of 4.7%. The two-phase separators play a vital role in separating the gaseous components from the crude oil. In addition, the growth in number of oil and gas expansion activities and the increase in installations of onshore facilities for two phase separators are expected to boost the market in during the forecast period. Furthermore, Brazil holds a substantial position in the global oil and gas industry, particularly with its offshore deepwater reserves. Oil and gas separators manufacturers have now conducted R&D activities to reduce equipment costs and increase efficiency.
By Gravitational Separator Product Type Polyethylene
Three-Phase Separators segment is the most lucrative segment
Brazil oil and gas separation market, by application
In 2022, the onshore segment was the highest revenue contributor to the market, with $414.5 million in 2022, and is estimated to reach $657.3 million by 2032, with a CAGR of 5.0%. Onshore production activities benefit from the optimization of resource recovery. Efficient oil and gas separators help companies recover more hydrocarbons from the well fluids and maximize economic returns. Moreover, onshore production involves transportation of oil and gas to processing facilities or storage tanks require proper separation of components.
By Application
Onshore segment witnessed the highest market share
Key Strategies
In July 2023, SLB secured a substantial five-year contract from Petrobras to implement its Delfi™ digital platform across the entire enterprise. This agreement encompasses comprehensive digital overhaul of Petrobras, spanning exploration, development, and production operations.
In May 2023, TechnipFMC signed contract with Equinor for an integrated engineering, procurement, construction, and installation (EPCI) project for work at the recently sanctioned BM-C-33 field offshore Brazil. The contract covers the entire subsea system, including Subsea 2.0 tree systems of TechnipFMC, manifolds, jumpers, risers and flowlines, umbilical’s, pipeline end terminations, subsea distribution and topside control equipment, and installation.
Impact Of Covid-19 On The Brazil Oil And Gas Separation Industry
- The country had to enforce lockdown owing to the outbreak of the COVID-19 pandemic. Adequate raw materials could not reach the industries for production due to disruption in the distribution channel.
- The IEA believes the oil market could be permanently altered for the foreseeable future. This scenario could reduce global oil consumption by 5.6 million barrels per day (mb/d) by 2026, and natural gas is a highly significant sector in Brazil amidst diverse energy matrix of the country, representing 13% of the domestic energy supply in 2021 according to the Brazilian Institute of Oil and Gas (IBP). Offshore production corresponds to 83% of the natural gas produced in Brazil (40.5 bcm) and onshore production has increased 10.8%.
Report Key Highlighters
- The Brazil oil and gas separation market is consolidated the major companies profiled in this report SLB, NOV Inc., ABS Group, Sulzer Ltd, Halliburton, TechnipFMC plc and TORMENE GROUP.
- The Brazil oil and gas separation market includes company profiles of 7 key players who are actively engaged in producing various Brazil oil and gas separation.
Brazil Oil and Gas Separation Market Report Highlights
| Aspects | Details |
 By Gravitational separator product type |
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 By Application |
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 By Key players in the Brazil oil and gas separation market are: |
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Analyst Review
The Brazil oil and gas separation market is expected to witness increased demand during the forecast period due to a rise in demand for energy.
Growth in adoption of non-conventional exploratory methods coupled with increase in production of shale gas and oil is expected to drive the market growth. Furthermore, increase in utilization of separators for onsite treatment as well as for pre-processing of fluids extracted from reserves fueled the demand for the oil and gas separation market during the forecast period. Rise in environmental concerns and stringent governmental regulations for exploring sustainable options for oil extraction are some of the other factors expected to drive Brazil oil and gas separation market.
Increase in energy demand from various industries surge in both conventional and non-conventional exploratory activities, also the need for more robust and efficient oil and gas separation solutions. These dynamics have catalyzed significant growth in the oil and gas separation market, further amplified by a push toward sustainability in extraction processes.
The onshore segment was the highest revenue contributor to the market, with $414.5 million in 2022 and is estimated to reach $657 million by 2032, with a CAGR of 5.0%.
The two-phase separator segment was the highest revenue contributor to the market, with $304.3 million in 2022, and is estimated to reach $469.3 million by 2032, with a CAGR of 4.7%.
Fluctuations in global oil prices are expected to impact investment in Brazil oil and gas separation market. High oil prices can incentivize companies to invest in more efficient separation processes to maximize hydrocarbon recovery.
Brazil oil and gas separation market is expected to witness increased demand during the forecast period due to exploration of oil & gas sector.
The leading players operating in the Saudi Arabia fire pump market include SLB, NOV Inc., ABS Group, Sulzer Ltd, Halliburton, TechnipFMC plc, and TORMENE GROUP.
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