Countries in Latin America, namely Argentina, Venezuela and Brazil, are bestowed with some of the largest oil reserves in the world. Venezuela is among the top 10 oil producers in the world. The country has been exporting oil to various nations over the past two decades. Currently, exploration activities in the region have led to new oil & gas discoveries. This, in turn, has resulted in higher investments in Latin America. Large MNCs are likely to invest significantly in the region due to the discovery of sizeable shale gas deposits. Argentina is the only country that is expected to embark on a large-scale shale gas production. Exploration and production of shale deposits in Argentina supplemented by political support is anticipated to reinforce the country’s economy significantly. Hence, government encouragement in terms of supportive schemes is also foreseeable in the next two to four years. This is anticipated to boost the overall growth of the drilling fluids waste management market in the near future.
Major portion of investment has been allotted for exploration and production activities, primarily in deep and ultra-deep reserves of Brazil. Increasing exploration and production activities would lead to accelerated drilling activities over the next two years. This, in turn, is estimated to propel demand for drilling mud, which ultimately would raise concerns regarding its handling, treatment and disposal. Hence, increased drilling activities are anticipated to bolster demand for drilling fluids waste management services. Stringent environmental regulations prohibit the disposal of drilling fluids waste before treatment. As a result, environmental policies have simultaneously led to the growth of drilling fluids waste management market in the recent years. After treatment, the waste so generated is required to comply with the permissible levels of toxic content in fluids. These permissible limits are determined by regulatory authorities in respective countries.
Pre-salt areas of Brazil and the Vaca Muerta shale formation in Argentina are considered the most lucrative options for drilling fluids waste management service providers. Significant investment by the government of Brazil for the development of oil and gas reserves is likely to foster growth of drilling fluids waste management companies in the region. Due to new offshore and onshore oil and gas discoveries, Colombia, Brazil and Argentina witnessed significant growth in the drilling fluids waste management market in the past few years. Increase in drilling activities in Latin America has strengthened the market growth for drilling fluids waste management services in the region. Disposal of drilling fluids waste directly into the seawater or land has affected the flora and fauna. This, in turn, has raised concerns in several environment and government agencies in Latin America, compelling them to deploy effective steps to curtail direct toxic disposal. Stringent regulations enacted by governmental organizations have further accelerated the growth of drilling waste management companies in the region.
Drilling activities in offshore regions are primarily focused on deep and ultra-deep water areas with harsh environmental conditions. These conditions are likely to lead to a delay in completion of drilling activities. This directly impacts the project cost. Apart from the challenges mentioned above, waste management companies need to ensure that their operations comply with the environmental regulations and are cost-effective in nature. Lack of oil and gas infrastructure in Latin America coupled with an increase in offshore activities further compounds the already existing problems.
The drilling fluids waste management market in Latin America is consolidated in nature. Baker Hughes Incorporated, Schlumberger Limited, Weatherford International Limited and Halliburton Company are some of the key players in the drilling fluids waste management market in Latin America. These companies have been providing drilling fluids waste management services for several years and account for majority of market share. Brand image plays an important role in acquiring contracts for drilling waste management. These companies provide turnkey solutions, from waste handling to waste disposal, to exploration and production companies.
Stringent government regulations for disposal of drilling fluids coupled with a paradigm shift towards development of shale gas and deep sea reserves is expected to drive the drilling fluids waste management market in Latin America from 2014 to 2020. Currently, drilling fluids waste management companies are reaping the rewards of the boom in the oil and gas industry in Latin America. Drilling activities, especially in the eco-sensitive areas of Amazon and offshore areas of Brazil, require special attention and monitoring in terms of disposal of drilling fluids waste. However, regulations related to drilling fluids waste management vary in different countries. Disposal limits of drilling fluids also depend upon the types of drilling fluids. Thus, these may differ for oil-based, water-based and synthetic drilling fluids.
This report analyzes, estimates and forecasts the drilling fluids waste management market in Latin America in terms of revenue (USD Million) from 2012 to 2020. The report estimates revenue for major countries in Latin America, including Argentina, Brazil and Venezuela. Apart from geography, the report provides revenue-based segmentation in terms of services (solid control, treatment & disposal and containment & handling) and applications (onshore and offshore). Furthermore, the report analyzes major driving and restraining factors for drilling fluids waste management and highlights potential opportunities for the drilling fluids waste management market in the near future. Drivers, restraints and opportunities for the market are developed after in-depth analysis of the oil and gas industry in Latin America. Growth of the oil and gas industry in Latin America is determined primarily by the government or state owned oil and gas companies such as Petrobras (Petróleo Brasileiro S.A.), YPF (Yacimientos Petrolíferos Fiscales) and PDVSA (Petróleos de Venezuela, S.A.). The monopoly prevalent in the market directly affects drilling fluids waste management companies operating in Latin America. Market segmentation of the study is based on service and application types. Services are classified into solid control, treatment & disposal, and containment & handling.
Applications for drilling fluids waste management are covered for both onshore and offshore areas of Latin America. This involves further analysis of the sub-segments of each service and application type for Brazil, Argentina, Venezuela and others. The report is customized as per the client’s requirement to provide an in-depth analysis of the drilling fluids waste management market in Latin America, with detailed analysis of countries such as Brazil, Argentina and Venezuela. The report further offers a brief overview of drilling fluids waste management in countries such as Ecuador, Colombia, Peru and Bolivia, categorized under the others segment.
The report includes detailed value chain analysis, thereby providing a comprehensive view of major players in the drilling fluids waste management market in Latin America. Value chain provides an analysis of major market players active in the drilling fluids waste management market. The study also analyzes market competition using Porter’s five forces model and describes the impact of suppliers, buyers, substitutes, new entrants and market competition. Porter’s five forces model is designed based on market dynamics along with the micro and macro economic factors that affect drilling fluids waste management companies functioning in Latin America. Market attractiveness analysis helps in estimating the most profitable segment for investment. Market attractiveness is prepared for the application (onshore and offshore) segment. Companies profiled in the report include Baker Hughes Incorporated, Halliburton Company, Schlumberger Limited, Weatherford International Limited, National Oilwell Varco and Imdex Limited (AMC Oil and Gas). Company profiles comprise product portfolio, financial overview (updated based on data availability), SWOT analysis, business strategy and recent developments.
Prices of drilling fluids waste services are volatile in nature and change depending upon the application and types of service segments. Prices of overall drilling fluids waste services are expected to fluctuate, leading to a squeeze in profit margins. The study presents a comprehensive assessment of stakeholder strategies and winning imperatives for them by segmenting the drilling fluids waste management market as below:
Latin America Drilling Fluids Waste Management Market: Service Segment Analysis
- Solid control
- Treatment & disposal
- Containment & handling
Latin America Drilling Fluids Waste Management Market: Application Analysis
Latin America Drilling Fluids Waste Management Market: Country wise Analysis
- Others (Rest of Latin America)