Severe Environmental Repercussions of Oil Spills to Put Oil Spill Management Market on Growth Track

An oil spill refers to the release of oils into the environment, particularly in marine areas. Oil spills are typically caused due to human negligence and are considered as a form of pollution. Leakages in oil and gas pipelines are a major concern for key pipeline operators because of the hefty fines and liabilities associated with oil spills. The use of advanced technology to prevent, manage, and clean oil spillage and further minimize its effect on the environment is thus required. This has boosted the emergence of the oil spill management (OSM) market. By type, the global market for oil spill management has been segmented into onshore and offshore.

According to a research study by Transparency Market Research, in 2013, the global market for oil spill management was worth US$94.2 bn and is projected to reach a valuation of US$114.4 bn by the end of 2020. The market is anticipated to register a 2.80% CAGR between 2014 and 2020.

How Have Oil Spills Risen Over the Years and What Does this Mean for the OSM Market?

The refined fuel and crude oil spills from tanker ships accidents have damaged the ecosystems in several parts of the world. Oil spills at sea are comparatively more damaging than those occuring on the land, as they can spread over hundreds of nautical miles and can cover several beaches with a thin coating of oil. The presence of oil in the sea can kill mammals, shellfish, seabirds, and other organisms they coat.  

Research Report: http://www.transparencymarketresearch.com/oil-spill-management.html

Some of the most alarming oil spills recorded in the last few decades are:

•    GulfWar Oil Spill (240 mn gallons) in 1991
•    Deepwater Horizon (206 mn gallons) in 2010
•    Ixtoc (140 mn gallons) in 1979
•    Atlantic Empress/Aegean Captain (90 mn gallons) in 1979
•    Fergana Valley (88 mn gallons) in 1992

An increasing number of oil spills in the last few decades has boosted the demand for the contingent planning of the oil spill management market.

Asia Pacific to Lead Global Oil Spill Management Market

From the geographical standpoint, in 2013, North America accounted for the largest share in the global oil spill management market. Nevertheless, the Asia Pacific market for oil spill management is anticipated to grow at a fast pace in the next few years. The rapid growth of this region can be attributed to the increasing demand for doubled-hulled ships by several big shipping companies in South Korea, Japan, and China. In addition, the increased government funding and easy availability of trained labor are expected to fuel the growth of the global oil spill management market in this region.

Moreover, several South East Asian nations including Thailand, Indonesia, Vietnam, Malaysia, and the Philippines are also anticipated to grow at a fast pace in the domestic shipbuilding and repair segments.

The prominent players operating in the global market for oil spill management include SkimOil, Inc., Control Flow Inc., CURA Emergency Services, Cameron International Corporation, Ecolab Inc., GE Oil & Gas, Hyundai Heavy Industries Co., Ltd., COSCO Shipyard Group Co., Ltd., Northern Tanker Company Oy, National Oilwell Varco, and Fender & Spill Response Services L.L.C.

Global Oil Spill Management Market to be driven by Surging Demand for Energy

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. 

Browse Market Research Report of Oil Spill Management Market: 

http://www.transparencymarketresearch.com/oil-spill-management.html

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. 

Browse Market Research Press Release of Oil Spill Management Market: 

http://www.transparencymarketresearch.com/pressrelease/oil-spill-management.htm

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.