Preliminary research of Fairfield Market Research indicates a promising growth outlook for global oil spill management market during the course of next few years.
Oil Spill Management Market Benefits from Growing Emphasis on Reducing Waste, and Overall Environmental Impact
In oil spill management, the use of technologies to prevent oil spills, the design of clean-up techniques after spills, and the implementation of techniques to reduce waste and devastating environmental effects are all essential. Exploration and production, refining and marketing, and chemical industries are all sectors that require operational oil spill management, which drives the growth of oil spill management market. These sectors have been involved in the pipeline and seaborne transportation of crude oil and chemicals. Demand for oil spill management technologies, and methods will thus fuel the growth of oil spill management market. Global oil and gas transportation will be driven by increasing safety concerns, and an increase in oil spills over the past few years. As drilling activities have increased both onshore and offshore, oil and gas transportation has also increased. Global oil spill management market is expected to benefit from expanding oil and gas transportation via tankers and pipelines and strict government safety guidelines. Major industry players are investing heavily in R&D. Over the forecast period, this is expected to create huge opportunities in global oil spill management market.
Governments and safety agencies worldwide have taken various initiatives, including the Occupational Safety and Health Administration (OSHA), to prevent oil spills and leaks at the source and during transportation. The key requirements are the installation of pipeline leak detection sensors and the double hulling of transportation carriers. In the forecast period, pre-oil spill management techniques will continue to be implemented primarily due to growing concerns and stricter safety norms for preventing on-site and transportation occupational hazards in petroleum facilities. In North America, oil spills can occur in the Gulf of Alaska, the Gulf of Mexico, the North Sea, and the Persian Gulf. Over the next nine years, the oil spill management market is expected to grow due to rising onshore and offshore oil spill incidents. Russia, the United States, Azerbaijan, Canada, Indonesia, Australia, Kuwait, Saudi Arabia, Libya, Iraq, Nigeria, Venezuela, and Angola are major onshore areas.
Oil Spill Management Market: COVID-19 Impact
The COVID-19 outbreak significantly affected the oil and gas industry in 2020. Because the manufacturing plants did not function properly due to the nationwide lockdown, production in these industries declined. As a result of COVID-19 restrictions on international travel, the country's socio-economic conditions and international support were limited, and the oil spill negatively affected coastal communities' livelihoods. The pandemic suspended clean-up and remediation, but drilling and exploration of oil and gas continued without any problems under essential services. Despite the growing international support for oil spill management across various regions in the projected period, the market is expected to recover.
High Dependency on Mechanical Containment, and Recovery Strategies to Drive Oil Spill Management Market Growth
Post-oil spill management techniques such as mechanical containment and recovery accounted for over 61% of the market, making them one of the most widely used in the last few years. To clean up oil spills, sorbents, containment booms, and skimmers are used. These response techniques are extremely effective for large-scale spills in the deep sea and close to the shoreline. Furthermore, during the forecast period, environmental concerns will directly affect oil spill management market growth, increased oil spill impacts on soil fertility, and enormous transportation of crude oil.
Regulations and Initiatives Related to Oil Spills and Leaks Influence Oil Spill Management Market Growth
Several initiatives have been undertaken by governments and safety agencies, including the Occupational Safety and Health Administration (OSHA), to prevent oil spills and leaks at their source or during oil transportation. The installation of pipeline leak detection sensors and the double use of transportation carriers are two of the most important requirements. The implementation of pre-oil spill management techniques is expected to remain a major factor contributing to the implementation of stringent safety norms during the forecast period and the concern about preventing transportation and on-site hazards in petroleum facilities. In addition, the increase in off-shore and on-shore activities has increased the demand for oil spill management services due to increased oil and gas transportation.
Management Challenges Associated with Oil Spills to Hamper Oil Spill Management Market Growth
Regardless of the exploration and drilling method used, oil spills can devastate the entire ecosystem and environment. Because of the high amount of waste produced, the number of pipelines connecting them may be harsh. Among the major challenges faced by the Government is establishing strict rules for oil spills and leakage and improving strategies to prevent leaks.
With Rising Demand for Crude Oil, Double-hulling Technology Remains Dominant in Oil Spill Management Market
Since the past few years, double-hulling has been the predominant pre-oil spill management technique and has accounted for the largest revenue share in oil spill management market. Oil & gas products are primarily transported by marine shipping. Over the next nine years, the market is expected to grow due to the increased demand for crude oil and petroleum products from Europe and Asia Pacific's energy industries. The growing concern over the harmful environmental impacts caused by hull-breach incidents has prompted international organizations and governments to standardize tanker designs. As a result, tankers have also been better protected against collisions and natural disasters. As a result, double-hull technology is expected to grow during the forecast period.
Offshore Category Dominate Oil Spill Management Market with a Large Number of Ongoing Pre-oil Spill Technologies
In the forecast period, the offshore segment held the largest market share, and it is anticipated that it will continue to rule the oil spill management market during the forecast period. A growing need for oil spill management technology in harsh environments, remote locations, and deep water is expected to drive demand for the product in the near future. For the foreseeable future, offshore E&P activity is expected to be driven by upcoming projects primarily in the South China Sea & Persian Gulf region and the renewal of abandoned wells. Regulations, taxes, and fines associated with oil spill containment are increasing pressure on oil and gas companies to deploy safety equipment for uninterrupted operations. Many ongoing pre-oil spill technology demands, particularly in the US, Qatar, and Saudi Arabia, are anticipated to witness considerable growth over the forecast period. Such systems include pipeline leak detection systems, and blowout preventers (BOPs).
North America Reigns Supreme in Oil Spill Management Market
Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. Due to the rise in oil & gas exploration and production activities in the region, the region is expected to gain market share. As a result of oil spill incidents in the region, such as Marathon Oil, Exxon Valdez, and Deepwater Horizon, stringent regulatory frameworks have been implemented for both onshore and offshore production activities. As a result of the rapid growth in oil and gas end-use industries, oil spill management has also grown, as it is excessively used in industries such as exploration and development, chemicals, and refining and marketing, all industries that utilize oil spill management. Moreover, government investments in the oil & gas industry will the growth of oil spill management market.
According to the International Trade Administration, ExxonMobil and Fieldwood, for instance, will invest US$ 18 billion in Mexico between 2021 and 2024 to purchase drilling, exploration, seismic services, and extraction equipment, including platforms and related services for 794 wells. This will drive the growth of the oil spill management market during the forecast period due to the increasing investment in the oil and gas industry. The Asia Pacific market is projected to experience stable revenue growth throughout the forecast period. Several Asian countries, including Japan, South Korea, and China, have experienced considerable growth in the regional market, which big shipping companies have driven. In recent years, a number of shipbuilders have seen substantial demand for double-hulled vessels. Additionally, due to a rapidly growing domestic market, shipbuilding activities are expected to increase rapidly in Thailand, Vietnam, Malaysia, the Philippines, and Indonesia.
Global Oil Spill Management Market: Competitive Landscape
As part of Fisheries and Oceans Canada’s commitment to funding Dr. Jianbing Li’s research, the department announced in January 2020 that it would provide around US$ 1.9 million to fund the next phase. In order to combat oil spills, Jianbing Li is seeking to discover a groundbreaking solution. Further, Log 9 Spill Containment, a Mumbai-based start-up in November 2019, developed graphene-based oil sorbent pads called Sorbene. In contrast to other polypropylene-based products, Sorbene absorbs oil, petrochemicals, and various hydrocarbon-based fluids up to five times more effectively. Sorbene is reusable and safe for disposal.
A few of the players in the oil spill management market include National Oilwell Varco, Cameron International Corporation, Control Flow Inc., Northern Tanker Company Oy, Fender & Spill Response Services L.L.C., SkimOil, Inc., GE Oil & Gas, COSCO Shipyard Group Co., Ltd., Hyundai Heavy Industries Co., Ltd., Ecolab Inc., and CURA Emergency Services.
Global Oil Spill Management Market is Segmented as Below:
By Product Type
Key Elements Included In The Study: Global Oil Spill Management Market
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