DRILLING WASTE MANAGEMENT MARKET ANALYSIS

The global Drilling Waste Management market was valued at US$ 5.0 Billion in 2022 and is projected to reach US$ 8.9 Billion by 2030, growing at a CAGR of 7.47% from 2023 to 2030 owing to tightening of global drilling waste management regulations coupled with growing environmental concerns towards effective drilling waste management. Stringent legal regulations towards restricting the proliferation of water and land pollution along with financial benefits offered to augment the adoption of effectively managing waste generated is expected to drive the drilling waste management market. However, the current slump in the oil and gas industry has impacted investment in the mining and construction sector. Rising ecological awareness in North America and Europe is predicted to boost business growth.

Global Drilling Waste Management Market: Growth Drivers

• Growing Production and Exploratory Operations in the Oil and Gas Industry

The rise in oil and gas production from places like North America and the Middle East is a direct result of the rise in global energy demand. The region's exploration and production operations have increased as a result of this rise. Drilling is a critical part of the oil and gas exploration and production process (E&P). The amount of drilling waste, which includes drilling mud and cuttings, increases as a result of the growth in drilling activity. As a result, it is crucial to have an appropriate waste management application for drilling procedures that also protects the environment. Opportunities for managing drilling waste are presented by an increase in production and exploratory operations.

• Growing Offshore Exploration Activities

Offshore oil and gas exploration and production activities across the globe have significantly grown over the last few decades. Currently, offshore production represents one-third of the global crude oil output and one-fourth of global gas production. The majority of the hydrocarbon reserves found in recent years have been offshore, which supports the growing significance of the maritime sector for extraction. Technology advancements have also aided offshore drilling in expanding into deep and ultra-deep oceans, which has increased its significance.

Global Drilling Waste Management Market: Market Restraints

• Impacts of Drilling Waste on the Environment

Numerous drilling-related products and wastes have the potential to have a harmful influence on the environment. The material, its concentration after release, and the exposed biotic community are the main determinants of the potential impact. While certain environmental concerns may be relatively minor, others could be quite high. Air pollution, contamination of the land, and pollution of aquatic bodies are the main effects that are of great concern. Marine life is put at peril when contaminated drill cuttings are improperly disposed of in the ocean. The air is made unhealthy for both humans and animals by the excessive emission of air pollutants from internal combustion engines. Some of these pollutants' consequences include respiratory problems in both humans and animals, damage to plants, and soil acidification. As a result, these factors are expected to restrain the global drilling waste management market growth over the forecast period.

Figure 1. Global Drilling Waste Management Market (%), By Application

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On the basis of application, drilling waste management is segmented into onshore and offshore. In 2022, the onshore application segment was the leading segment with the largest market share in the Global drilling waste management market, owing to its wide operations based on land. Furthermore, onshore drilling offers large options for the storage and transport of oil after the extraction process.

On the basis of service type, the drilling waste management market is segmented into solid control, treatment & disposal, containment & handling, and others. Furthermore, the service type is sub-segmented into treatment & disposal, containment & handling, and solids control. Treatment & disposal service segment was the leading segment among service types, and accounted for the largest share in the drilling waste management market, owing to the onsite burial sites which include landfill and pits, land farming, land spreading, slurry injection, thermal treatment, and bioremediation. However, the solid control segment will be the largest growing segment during the forecast period, due to the high efficiency of the process involved with the control system. Furthermore, the service segment is used to remove unwanted solids such as drill cuttings from drilling fluid, gases, and other contaminants in mud, while providing maximum recovery for the re-use of drilling fluids.

Global Drilling Waste Management Market- Impact of Coronavirus (Covid-19) Pandemic

In 2020, swift spread of COVID-19 largely impacted the global business operations, disrupting the supply chain and impairing various industries. The global trading activities were declined severely owing to the nationwide lockdowns, international border seals, and strict social distancing measures. This had a drastic impact on the global economy, as the companies across the globe were forced to either fully close or partially close their operations, leading to disruption in the supply-demand ratio. Moreover, in 2021 several key markets such as U.S., India, and Brazil among others witnessed a second wave of COVID-19 that further disrupted the market. However, it is expected that reopening of trade activities, the market will witness steady growth in demand in the coming years. The impact of COVID-19 on the market demand is considered while estimating the current and forecast market size and growth trends for all the regions and countries.

Global Drilling Waste Management Market: Regional Analysis

North America holds a dominant position in the global drilling waste management market, with a 36.40% market share. This is due to various drilling activities produced by the increase of shale gas. The U.S. Shale Revolution significantly increases its oil and gas production, one of the biggest events for the oil & gas industry. The regulations in the U.S. promote the development of oil & gas, providing a stable process. The stabilization of oil prices may result in increasing drilling activities in North America, which in turn, drives the market growth.

Europe holds the second largest position, in terms of revenue, in the global drilling waste management market. The market is driven by growing exploration activities, supportive regulations, and increasing awareness of environmental pollution. Environmental regulations such as zero discharge policy in the offshore region drive the market growth. The used drilling mud is considered a kind of mining waste, thus, it is subjected to the 20/2006/EC mining waste directive, as per European legislation. The drilling mud cannot be disposed on landfill facilities and can be re-injected into underground strata.

In the Middle East and Africa, the discoveries of gas in Mozambique and Tanzania and increased E&P (Exploration & Production) activities in Kenya and Uganda, hold untapped oil and gas reserve potential in the region. The stringent environmental norms for offshore projects and any spillage may result in additional operation costs, ensuring the adoption of drilling waste management by the industry.

Figure 2. Global Drilling Waste Management Market (%), By Region

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Global Drilling Waste Management Market: Recent Developments

• In September 2019, TWMA has secured a contract from North Sea operators to provide offshore processing of drilling waste using its innovative TCC RotoMill technology which allows drill cutting to be managed safely and effectively on site. The contract value is estimated to be around £20million.
• In June 2018, Halliburton recently unveiled the BaraOmni hybrid separation system, an advanced separation technology able to remove ultra-fine low gravity solids (LGS) resulting in better performing, longer lasting fluid systems. BaraOmni allows drilling fluid, contaminated solids, and other hydrocarbon waste streams to be treated with a single system.
• In September 2016, The State Oil Company of Azerbaijan Republic (SOCAR) has opened a waste management center in Garadagh district of Baku City. The center can process sludge generated during drilling in accordance with the international standards.

Global Drilling Waste Management Market: Key Companies

Some of the key players operating in the global drilling waste management market are Halliburton Co., Weatherford International Ltd., National Oilwell Varco, Inc., Xi'an Kosun Machinery Co., Ltd., Tervita Corporation, TWMA Ltd., Step Oiltools, Soli-Bond, Inc. Specialty Drilling Fluids Ltd., Soiltech, Scomi Group BHD, Secure Energy Services, Inc., Schlumberger Ltd., Nuverra Environmental Solutions, Ridgeline Canada, Inc., Newalta, Hebei Gn, Solids Control Co. Ltd., Imdex Limited, Baker Hughes, Inc., Derrick Equipment Company, and Augean PLC

Definition: Drilling waste management is a constituent of successful operation activities related to E&P operations, which is essential for effective drilling and production operation and for environmental protection.