Rise in drilling activities globally fueled by increasing demand for energy for industrial development is one the major factors boosting the demand for pressure control equipment such as Blowout Preventers (BOPs). Moreover, stringent government regulations impose hefty penalties on oil companies that are responsible for oil spillage. This is an additional factor augmenting the demand for pre-oil spill management technologies globally.
The global oil spill management can be divided into pre- and post-oil spill management scenarios. Pre-oil spill management deals with utilization of technologies to prevent oil spills. Post-oil spill management deals with different methods employed to contain, manage or clean an oil spill. Increasing seaborne and pipeline transportation of crude oil and chemicals around the world is one the major factors influencing the oil spill management market. Moreover, stringent regulations pertaining to the utilization of safety devices and technologies while drilling or transporting crude oil is an additional factor augmenting the oil spill management market.
The pre-oil spill management technologies include double hulling of ships, installation of blowout preventers, and pipeline leak detection systems. Increased drilling activities coupled with stringent government regulations against oil spillage are the major factors fueling the demand for BOPs. High cost associated with double hulling of ships is one of the major factors for the large market share of the double hulling segment. Stringent International Maritime Organization (IMO) regulations mandating the construction of double-hulled ships has further contributed to the large market share.
Leaks in oil and gas pipelines have also remained a major cause of concern for pipeline operators, primarily owing to the implied risks and costs associated with such incidents. The costs associated with leakages can be in the form of lawsuits, clean-up costs, and restoration costs. Uneven distribution of fossil fuel resources along with the growing demand for energy across nations has resulted in an increased demand for hydrocarbon logistics solutions including pipelines. These pipeline installations would certainly benefit the companies providing pipeline leak detection systems. Pipeline leak detection systems alarm pipeline operators in case of a leakage from any crude oil or refined product pipelines.
Asia Pacific is expected to lead the pre-oil spill management market during the forecast period. Presence of large shipping industry has enabled countries such as South Korea, China and Japan to acquire majority of the orders for new build double-hulled ships. Rapid growth of the shipbuilding industry in Asia Pacific can be attributed to government-introduced funding through Export Credit Agency (ECA), and easy availability of steel and skilled labor. Moreover, South East Asian countries such as Vietnam, Thailand, Malaysia, Indonesia and the Philippines are also exhibiting rapid development in the domestic shipbuilding and repair industries.
North America led the global post-oil spill management market from 2000 to 2013. Majority of the total expenditure in the region was incurred to manage the Deepwater Horizon oil spill in 2010. Mechanical containment is one of the most prevalent methods to manage oil spills. Mechanical containment includes usage of booms, barriers and skimmers.
Some of the key participants in the global oil spill management market include Cameron International Corporation, National Oilwell Varco, Control Flow Inc., Fender & Spill Response Services L.L.C., Northern Tanker Company Oy, SkimOil, Inc., Hyundai Heavy Industries Co., Ltd., GE Oil & Gas, COSCO Shipyard Group Co., Ltd., CURA Emergency Services, and Ecolab Inc.