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Drilling Waste Management Market Overview
Rising expenditure for oil production across the world to meet the soaring energy demand and tightening government regulations with respect to the management of drilling waste to avoid its hazardous environmental impact are the major trends identified in the drilling waste management market. Furthermore, significant increase in the exploration of proven gas reserves in Russia, Turkey, and the U.S. is strengthening the market. Additionally, advancements in waste management technologies (focused on achieving zero discharge and increasing the use of nanotechnology) are expected to positively influence the market growth in the near future.
Drilling waste management is a practice of collecting, transporting, processing, recycling, disposing, and monitoring drilling fluids and drill cuttings extracted during the exploration of oil and gas in order to avoid their harmful effects on health and on the environment at large. Over the past years, the industry has demonstrated extensive growth on account of the rise in the spending of oil and gas companies on waste management complemented by stringent government regulations. In this report, the drilling waste management market is segmented on the basis of service, application, and geography.
By service, the drilling waste management market is categorized into solid control; containment and handling; and treatment and disposal. Among these, the treatment and disposal service category contributed the largest revenue to the market during the historical period, while the solid control service category is expected to dominate the market during the forecast period, owing to the increasing consumption of this service, as the high presence of drilled solids reduces the efficiency of drilling equipment, thereby increasing the drilling cost and the risk of wellbore instability.
The global drilling waste management market is also classified into offshore and onshore applications. According to the U.S. Energy Information Administration (EIA), in 2015, onshore oil production accounted around 71% of the total crude oil production in the world, which also implies that onshore activities contributed significant revenue to the market during the historical period. Moreover, the category is projected to continue dominating the market during the forecast period as well on account of technological improvements in onshore exploration and production (E&P) activities.
Geographically, the drilling waste management market is categorized into North America, Europe, Latin America (LATAM), Asia-Pacific (APAC), and the Middle East and Africa (MEA). North America and the MEA are among the largest revenue generators in the market, owing to the presence of a large number of proven oil and gas reserves in countries such as the U.S., Canada, Saudi Arabia, and Qatar. Furthermore, rising investments by oil and gas E&P companies in North America to meet the soaring energy demand globally is expected to strengthen the drilling waste management industry in the region.
Moreover, recovering crude oil prices have led to the huge inflow of cash for the development of the oil and gas sector in the Middle East, which, in turn, would further boost the drilling waste management market in the region. During the forecast period, the market is expected to witness promising growth in natural gas-producing countries such as Russia, Qatar, Nigeria and Iran owing to the paradigm shift in countries in terms of the growing use of natural gas for power generation.
Drilling Waste Management Market Dynamics
The growth of the drilling waste management market is primarily driven by the increasing expenditure of oil and gas companies for the management of drilling waste on account of its rising hazardous environmental effects. Keeping an eye on the harmful effects of the drilling waste, governments of various countries are imposing strict regulations regarding the management of waste generated from drilling activities.
High operational cost and scarcity of skilled workforce are the key factors restraining the growth of the drilling waste management market globally. In addition, growing concerns over illegal drilling activities taking place in remote areas, primarily in the African and Central Asian regions, are affecting the market growth.
Drilling Waste Management Market Competitive Landscape
Some of the major players operating in the global drilling waste management market are Baker Hughes, a GE Company, Weatherford International PLC, Schlumberger Limited, Halliburton Company, National Oilwell Varco Inc., Scomi Group Bhd, Hebei GN Solids Control Co. Ltd., Newalta Corporation, Nuverra Environmental Solutions.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, Russia, Norway, the U.K., China, Brazil, Iran, Iraq, the U.A.E., Saudi Arabia, Kuwait, Qatar, and Nigeria.