Drilling Waste Management Services Market - Growth, Trends, and Forecast (2020 - 2025)

The global drilling waste management services market is expected to grow at a CAGR of more than 4% over the period of 2020-2025. Factors such as upstream activities, particularly exploration and drilling activities, which continue to expand across the world, are set to increase the demand for oilfield services. The rising drilling activities across the world are likely to augment the drilling waste management services market in the coming years. Increasing government regulations, such as reducing pollution because of the release of harmful gases and landfills during drilling activities, are expected to drive the drilling waste management services market during the forecast period. However, the lack of skilled labour and high initial investments are some of the factors restraining the market from growth.

• Growing drilling activity, particularly offshore drilling activity, is expected to drive the drilling waste management services market during the forecast period. Also, the offshore drilling waste management is highly capital intensive, as compared to that of onshore services.
• Increase in the exploration and production (E&P) activities in deepwater and ultra-deepwater reservoirs is expected to increase the number of wells drilled, and drive the demand for the oilfield services, thereby creating opportunity for the drilling waste management services market.
• North America is expected to lead the drilling waste management services market during the forecast period owing to extensive and widespread exploration and production activities in the region.

Key Market Trends

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.

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.

Competitive Landscape

The drilling waste management services market is consolidated. Some of the key players in this market are National-Oilwell Varco Inc., Halliburton Company, Schlumberger Limited, Baker Hughes Co., Weatherford International PLC, among others.

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