Market Trends of Drilling Waste Management Services Industry
This section covers the major market trends shaping the Drilling Waste Management Services Market according to our research experts:
Offshore Oil & Gas to Dominate the Market
- The offshore oil and gas sector generates a variety of solid and liquid wastes. Some of these wastes are attributable to exploration and production (E&P) activities (drilling wastes, produced water, treatment, and workover fluids), while others are due to a generic industrial operation.
- Of the total waste produced from the offshore drilling activity, over 85% of them are hazardous. Also, the offshore drilling waste management is highly capital intensive, as compared to that of onshore drilling waste management.
- During offshore drilling, drilling fluid requirements are very specific. To meet these requirements, the drilling fluid comprises of many different chemicals, which can be hazardous to the environment if released untreated.
- At the beginning of 2018, the Trump administration announced the opening of 98% of the coastal water for oil and gas exploration and production, which was not allowed under the Obama administration. The announcement is expected to drive the demand for drilling waste management services in the offshore sector of the United States in the long run.
- Adding to this, offshore exploration activities are growing in the Asia Pacific region, which influences the market in a positive way. Population expansion, growing the industrial base, and increasing energy demand is expected to boost the market in the coming years.
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North America to Dominate the Market
- Drilling activity, onshore and offshore, is expected to grow substantially in North America during the forecast period, owing to the growth of the upstream sector in the United States.
- The production in the Permian Basin of Texas and Gulf of Mexico has registered a CAGR of about 13.5% during the 2014-18 period. The United States government has also announced that it plans to open almost all the United States' waters for exploration & production activity.
- Canada, with stability in oil prices, is expected to experience increasing investments in the oil & gas industry, allowing private players to explore some of its most prominent oil sand reserves.
- Factors such as efforts to meet the growing demand for crude oil and natural gas along with government policy to encourage upstream activity in the United States and expected growth of upstream industry in Canada are expected to drive the drilling activity, in turn, driving the drilling waste management services market in the region.
- Hence, increasing oilfield exploration with the presence of several companies offering oilfield services are some of the major factors that augment the market growth in North America.
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