Offshore Drilling Waste Management Market Share

North America Market Analysis

North America offshore drilling waste management market is set to hold revenue share of over 39.5% by the end of 2037. The market is rising due to large-scale offshore drilling activities for oil and gas, particularly in the Gulf of Mexico and offshore regions of Canada. The high output of drilling activities also generates large-scale wastes that requires waste management solutions. Authorities have become more stringent in enforcing rules after the Gulf Oil spill of 2010 that had huge ramifications on the environment. The stringent regulations are expected to boost the offshore drilling waste management market.

U.S. retains the largest revenue share in the North America region. The U.S. Energy Information Administration highlights the Gulf of Mexico oil production to account for 14% of U.S. crude oil production. In March 2024, the United States Environmental Protection Agency stated the waste generated from natural gas and crude oil exploration is subject to regulation, and designated as non-hazardous waste. The open dumping of solid wastes is banned and there are criteria set for operation of industrial waste landfills. Such regulations lead to offshore drilling waste management market players in U.S. seeking drilling waste management solutions to prepare effective action plans to treat waste within the regulatory boundaries.

Canada is projected to increase its revenue share in North America during the forecast period. Canadian Energy Regulator estimates 4% of oil production in the country to stem from Hibernia, Terra Nova, White Rose, and Hebron while one offshore project is in development, i.e., West White Rose. Canada has offshore waste treatment guidelines that requires offshore operators to minimize the volume of waste materials generated in their operations. To adhere to the regulatory guideline in Canada, major market players demand robust drilling waste management solutions leading to the offshore drilling waste management market’s growth. For instance, in May 2022, Busch Vacuum Solutions serviced a Cobra vacuum pump to enable green solutions by treating residue oil in offshore drilling waste.

APAC Market Analysis

The Asia Pacific offshore drilling waste management market is witnessing steady growth and is projected to have the fastest increase in revenue share globally during the forecast period. The market is driven by growing off shore oil and gas exploration activities in China, India, Malaysia, and Australia. The Asian Development Bank’s report states that Asia Pacific nations are behind their sustainable development goals (SDG) leading to intensifying efforts to reduce environmental impact. The drive to decrease adverse environmental impact is pushing for drilling waste management solutions as companies in Asia Pacific seek to adhere to the robust regulatory frameworks.

In India, offshore drilling activities are steadily increasing in offshore regions such as Cauvery Basin, Krishna-Godavari Basin, and Mumbai High. The India Brand Equity Foundation reports oil demand in India to rise to 11 million barrels per day by 2045 and consumption of natural gas to register an average annual growth of 9% by 2024. These growing consumption rate leads to more offshore drilling for the resources correlating with the rising demand for offshore drilling waste management solutions.

China is rapidly expanding its revenue share in the APAC offshore drilling waste management market due to aggressive offshore exploration in the South China Sea and Bohay Bay. For instance, in July 2024, the China National Offshore Oil Corporation (CNOOC) reported the installation of a 30 thousand tons offshore drilling platform Xijiang 30-2B in the South China Sea. Offshore drilling activities in China have intensified as it looks to cut down on dependence on imports resulting in tons of waste generation requiring waste management solutions.