Drilling Waste Management Market (Updated Version Available)

Key Market Overview:

Drilling Waste Management Market size was valued at USD 5,053.94 Million in 2022, registering a CAGR of 6.8% during the forecast period (2023-2030), and the market is projected to be worth USD 8,514.43 Million by 2030.

Drilling waste management is the process of controlling, treating, and disposing of the waste materials generated during the drilling of oil and gas wells. The major focus of drilling waste management is to reduce the volume of waste and minimize environmental risks. Drilling waste management is vital to enhance the economics and reduce the environmental impact of drilling activities. The primary applications of drilling waste management include onshore and offshore. The booming production activities of oil and gas products are accelerating the growth of the market.

For instance, according to the recent statistics published by the U.S. Energy Information Administration, in 2021, the annual production of crude oil at the global level was 95.69 million barrels per day, and in 2022, it was 99.85 million barrels per day. In 2022, the year-on-year growth of crude oil production at the global level was 4.34%. Henceforth, the increase in the production of crude oil at the global level is accelerating the demand for drilling waste management to ensure the removal of solids from the drilling fluid, thereby propelling the market growth.

Drilling Waste Management Market Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Million)	8,514.43 Million
CAGR (2023-2030)	6.8%
Base Year	2022
By Services	Solids Control, Treatment & Disposal, and Containment & Handling
By Application	Onshore and Offshore
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Baker Hughes Co., Halliburton Company, Schlumberger Limited, National-Oilwell Varco Inc., TWMA, Weatherford International PLC, Eco-Logic Environmental Engineering Inc., GN Solids Control, SAR AS, and Solids Control Services

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Market Dynamics:

Driver:

Drilling waste management is employed in the oil and gas industry for the utilization of resources and materials for the same process. Furthermore, the recovered part or the waste can be deployed in a new process over again. For instance, according to the recent statistics published by the U.S. Energy Information Administration, in 2021, the annual production of crude oil in OPEC countries was 31.66 million barrels per day, and in 2022, it was 34.17 million barrels per day. In 2022, the year-on-year growth of crude oil production in OPEC countries was 7.91%. Thus, the increase in the production activities associated with crude oil in OPEC countries is favoring the demand growth for drilling waste management to minimize waste generated during the drilling activities, which, in turn, is benefiting the market growth.

Restraint:

The health hazards associated with the hazardous waste produced due to the drilling operations are restraining the growth of the drilling waste management market. For instance, drilling waste management can lead to potential threats related to contamination of land, air pollution, and pollution of aquatic life, among others. These pollutants have serious health concerns in the long run. Thus, the health concerns associated with the management of drilling waste are posing a bottleneck for the growth of the market.

Opportunities:

The oil and gas industry generates a wide range of solid and liquid wastes such as drilling wastes, drilling fluids, and others. As a result, the utilization of drilling waste management is increasing in the oil and gas sector to reduce the impact of drilling operations on the environment. The increasing government initiatives for strengthening the oil & gas industry along with the growing foreign direct investments in resource-rich countries are augmenting the development of new oil and gas projects at the global level. For instance, as of July 2023, the Wisting Central Oil Discovery project located in Norway, Europe is under the designing phase. The development of the Wisting Central Oil Discovery project will include 19 producer wells along with 15 water injection wells leading to a processing capacity of 150,000 b/d of oil. The operation of the project will commence in 2026. Therefore, the development of new oil and gas projects at the global level will accelerate the demand for drilling waste management to efficiently dispose of drilling fluids, thereby creating an opportunity for the growth of the global drilling waste management market.

Drilling Waste Management Market Segmentation:



By Services

The services segment is classified into solids control, treatment & disposal, and containment & handling. In 2022, the treatment & disposal segment accounted for the highest market share in the drilling waste management market. The treatment & disposal service providers collect and hold the drilling-associated wastes that are generated from the drilling operation. In addition, key services provided by the treatment & disposal service providers include management & disposal of drilling cuttings, good & proper treatment, and exhaust mud to make oil & gas well drilling highly compatible with natural environmental requirements. For instance, in December 2022, ONGC announced an investment of USD 7.3 billion for the development of new offshore projects in India. Hence, the development of new offshore projects is accelerating the demand for drilling waste management growth to ensure efficient handling of drilling waste. This, in turn, will accelerate the segment growth in the upcoming years.

However, the solids control segment is projected to grow at the fastest CAGR during the forecast period due to the rising technological innovations associated with solids control equipment, which is driving segmental growth.

By Application

The application segment is categorized into onshore and offshore. In 2022, the onshore segment accounted for the highest market share in the drilling waste management market. Drilling waste management is an ideal service for the onshore oil and gas project to provide an integrated solution to the efficient drilling fluids management and the associated drilling waste generated. This ensures efficient operation from waste generation to final disposal. The development of new onshore projects will drive the demand for drilling waste management services. For instance, Pikka Oil Field is an onshore oil and gas project in Alaska, United States. The production activities associated with the Pikka Oil Field are projected to commence by the year 2026. Henceforth, the future anticipated expansion in the development of new onshore oil and gas projects will supplement the market growth.

However, the offshore segment is expected to be the fastest-growing segment over the forecast period owing to the increasing upgradation and expansion of existing onshore oil exploration projects which will boost the demand for drilling waste management.

By Region:

By region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. In 2022, North America accounted for the highest market share in the drilling waste management market. The growth in the North American region is attributed due to the presence of a large part of the oil and gas projects in countries such as the United States and Canada, which created a significant demand for drilling waste management for efficient disposal of waste. For instance, North America is the hub of major global drilling waste management companies, such as National-Oilwell Varco Inc., Baker Hughes Co., and Eco-Logic Environmental Engineering Inc., among others. These companies have a strong presence and influence in the region. As a result, the demand for drilling waste management is increasing in North America.



Moreover, Asia Pacific is anticipated to be the fastest-growing region over the forecast period, owing to the development of new drilling waste management companies, the presence of major players in the market, and others.

Drilling waste management Market Competitive Landscape:

The drilling waste management market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-

• Baker Hughes Co.
• Halliburton Company
• Schlumberger Limited
• National-Oilwell Varco Inc.
• TWMA
• Weatherford International PLC
• Eco-Logic Environmental Engineering Inc.
• GN Solids Control
• SAR AS
• Solids Control Services

Recent Developments

• In March 2023, TWMA, a specialist drilling waste management company based in the United Kingdom acquired a contract with a leading North Sea oil and gas operator. Thus, the recent contacts for the services of drilling waste management are spurring the market growth.