Greater drilling activities coupled with surging energy demands from the industrial sector are the two key factors driving the global oil spill management market. This leads to high demand for pressure control equipment. Blowout Preventers are the most extensively used pressure control equipment across several regions. Also, another prominent factor that adds to the overall demand for oil spill management techniques is strict government regulations and standards that impose substantial penalties for spillage of oil by oil companies.
Developing at a 2.8% CAGR from 2014 to 2020, the global market for oil spill management is expected to reach a market value worth US$114441.1 million in 2020 from US$94218.1 million in 2013. It has also been recorded that the total expenditure incurred on post-oil spill management services between 2000 and 2013 was US$12886.5 million. Mechanical containment, which involves the use of barriers, skimmers, and booms, is the most extensively applied method in managing oil spills.
What are some of the Challenges in the Global Oil Spill Management Market?
One of the primary causes of concern that continues to hinder the performance of this market is leaks in gas and oil pipelines. This is in fact, a huge challenge for most pipeline operators in the oil spill management market, who have to bear the costs of dealing with such conditions.
Restoration costs, clean-up costs, and lawsuits are the three main types of costs that the pipeline operators have to frequently deal with. This is a growing problem in the face of rising demand for pipelines, which has proven to be the best logistical solution for transportation of oil and gas to areas that have limited access to fossil fuels.
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Interdependence between Growth of the Shipbuilding Industry and the Oil Spill Management Market
Some of the main regional markets for oil spill management are Europe, Asia Pacific, North America, and Rest of the World. Between 2000 and 2013, North America was a regional leader in the global post-oil spill management market. Much of the expenditure incurred in this region was due to the Deepwater Horizon oil spill that took place in 2010.
It is anticipated that Asia Pacific will be a prominent leader in the pre-oil spill management market in the forecasting horizon. Over the past couple of years, countries such as Japan, China, and South Korea have been receiving several orders for manufacturing double-hulled ships, owing to the presence of a huge shipping industry.
Availability of skilled workforce and an abundant supply of steel coupled with government funding via the Export Credit Agency are the key factors that have led to the robust growth and expansion of the Asia Pacific shipbuilding industry. Prevailing industry trends also indicate that the Philippines, Malaysia, Vietnam, Indonesia, and Thailand are countries with rapidly growing shipbuilding and shipbuilding repair industries.
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Pipeline leak detection systems, installation of blowout preventers, and double hulling of ships are a few of the main pre-oil spill management technologies. The high share of the double hulling segment can be attributed to the steep costs of double hulling of ships.