Monday, 17 August 2015

Global Oil Spill Management Industry to Rise Attributed to Government Investment for Oil Spill Management

6 million tonnes of crude oil is transported by tank-ships on a daily basis, incurring the risk of oil spills in spite of strict regulations for lowering the risk of the same and adoption of oil spill management technology. The global oil spill management market is witnessing steady growth in the market due to these risks.

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The stringent rules and regulations enforced by the government mandating higher investments towards avoiding and managing oil spills bring in a substantial amount of capital in the global oil spill management industry. Apart from this, the rise in the volume of seaborne trade is likely to augment the expenditure on offshore oil spill management. The pipeline trade for natural gas and crude oil is also expected to rise in the near future. This growth is expected to strengthen the industry for leak detection and several other spill management equipment and services market.

On the other hand, plunging oil prices are resulting in a reduction in offshore exploration activities, which in turn is limiting the demand for blowout preventers. However, advancement in blowout preventer technology is expected to act as a cost-saver for the major players in the oil spill management.

Asia Pacific and North America Dominate Pre-oil Spill and Post-oil Spill Management Industry, Respectively

Technology-wise, the global oil spill management industry is classified into the pre-oil spill management market and post-oil spill management market. Pipeline leak detection systems, blowout preventers, and double hulling of ships are the major techniques used in pre-oil spill management. Double hulling of tankers is the most common method employed for reducing the chances of oil spills. Mechanical, physical, chemical, and biological methods are employed in post-oil spill management. Apart from the technology, the oil spill management industry is categorized into onshore and offshore oil spill management markets by application.


Among the regional markets for oil spill management, such as North America, Europe, Asia Pacific, and the Rest of the World, the market in Asia Pacific is expected to lead the global pre-oil spill management industry during the period from 2014 to 2020.

The presence of a huge shipping industry has enabled Asian nations such as Japan, China, and South Korea to grab most of the orders for newly constructed double-hulled ships. The substantial growth of the market for shipbuilding in Asia Pacific, which is majorly driven by government-initiated funding by the Export Credit Agency, also known as ECA, and abundant availability of steel and a skilled workforce is the main reason for the rapid development of the oil spill management market in this region.

Apart from this, various Southeast Asian nations such as Thailand, Vietnam, Indonesia, Malaysia, and the Philippines are also witnessing healthy growth rates of local shipbuilding and repair industries, resulting in significant development of the oil spill management industry in Asia Pacific.

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The global post-oil spill management industry was headed by North America during the period of 2000 to 2013. Most of the overall expenditure in the region was utilized to control the Deepwater Horizon oil spill, also known as BP oil spill, which occurred in the year 2010. Mechanical containment is the most popular method to control oil spills in North America.

Global Oil Spill Management Market to Develop Moderately at 2.8% CAGR

In 2013, the global industry for oil spill management generated revenue of US$94,218.1 million. The market is projected to reach a value of US$114,441.1 million by the end of 2020, developing at a 2.8% CAGR from 2014 to 2020.

The global market for oil spill management has a number of players operating it. Cameron International Corporation, Control Flow Inc., National Oilwell Varco, Fender & Spill Response Services L.L.C., SkimOil, Inc, Northern Tanker Company Oy, Hyundai Heavy Industries Co., Ltd., Cosco Shipyard Group Co., Ltd., GE Oil & Gas, Ecolab Inc., and CURA Emergency Services are some of the major players in this market.


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