The global Drilling Waste Management Market is estimated to be valued at US$ 5.0 Billion in 2022 and is expected to exhibit a CAGR of 7.47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Drilling waste management involves proper handling, treatment and disposal of drilling waste generated during oil and gas exploration and production activities. Drilling waste typically includes cuttings, mud, cement returns, and reserve pit liquids. Improper management and disposal of drilling waste poses serious threats to the environment. Drilling waste management protects the environment by ensuring safe disposal of drilling waste using technologies and processes that separate recyclable components from non-recyclable waste.
Market key trends:
One of the key trends in the drilling waste management market is the increasing generation of drilling waste due to rising exploration and production (E&P) activities. According to the U.S. Energy Information Administration (EIA), crude oil production is expected to increase from 11.6 million barrels per day in 2020 to 13.1 million barrels per day by 2023 in the U.S. alone. Increasing investment in oil and gas E&P across the globe is leading to rising drilling operations, thereby generating more drilling waste that needs to be managed properly. This growing generation of drilling waste is fueling demand for effective drilling waste management services and solutions.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the drilling waste management market is low as it requires high initial investments and is a highly regulated industry.
Bargaining power of buyers: The bargaining power of buyers is moderate as the drilling waste management services are essential for oil and gas exploration and production activities.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are numerous suppliers in the market who can provide raw materials and equipment required for drilling waste management.
Threat of new substitutes: There are limited alternatives available for proper treatment and disposal of drilling waste generated in oil and gas operations.
Competitive rivalry: The competitive rivalry in the market is high due to presence of several global and regional players competing on parameters of product and service quality, health and safety standards, technology, and price.
Key Takeaways
The Global Drilling Waste Management Market Demand is expected to witness high growth, exhibiting CAGR of 7.47% over the forecast period, due to increasing environmental regulations governing oilfield waste disposal.
The North American region dominated the market in 2022 with highest revenue share owing to rise in shale exploration and production activities in the US and Canada. However, the Asia Pacific region is expected to be the fastest growing market during the forecast period owing to increasing drilling activities in countries such as China, India and Indonesia.
Key players operating in the 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. Halliburton is one of the leading player providing complete drilling waste management services globally.
