In 2012, drilling waste management onshore accounted for a share of about 93% of the total drilling waste management market share. However, between 2013 and 2018, offshore waste management is likely to register a strong growth, on an account of the growing environmental practices, and stringent regulatory measures globally. By 2018, offshore drilling waste management is anticipated to reach $684.3 million, up from $360.9 million, at a CAGR of 13.7%.
The major growth driver for the industry is increasing energy demand across the globe. This increased demand forces the oil & gas field operators to explore newer hydrocarbon reserves. These explorations of new reserves required significant drilling activities, which increased by about 3% across the globe from 2011 to 2012. Drilling these new reserves generate huge volumes of waste, containing fluids and cuttings that in turn drive the growth of drilling waste management market.
Of the global drilling waste management market, a major portion of the services is being currently consumed in the North America region due to the large number of onshore wells, unconventional resources development activities, and exploration activities in the Gulf of Mexico region.
Offshore exploration generates waste that has to be transported onshore for processing. Ennox is aggressively pursuing the offshore segment with a technology that is well suited for offshore installation, eliminating the need for expensive the onshore transport logistics.
As a result of relaxed environmental regulations, use of experimental technologies and military conflicts, millions of tons of oil-contaminated soil are creating significant environmental hazards around the world. Today, there is an increased focus on remediate these vast areas. Ennox’ EGX units are highly mobile and can be deployed in field at the source as part of remediation efforts. With the low operational expense, EGX offers the industry an opportunity to turn waste into revenue streams.