The growing global energy demand continues to drive reliance on the petroleum industry, making effective waste management essential. Petroleum industry operations generate significant waste, impacting both human health and the environment. This review highlights bio-based solutions, focusing on composting, slurry phase treatment, and microcosm approaches as promising bioremediation strategies. It examines key factors influencing composting efficiency, such as temperature, moisture content, carbon-to-nitrogen (C:N) ratio, and microbial activity, while exploring microcosm studies that provide controlled environments for analyzing petroleum contaminant behaviour and microbial degradation. Integrating microbial bioremediation mechanisms, composting optimization, and innovative monitoring techniques, this review presents a holistic framework for petroleum waste degradation. By emphasizing the "wastes-treat-wastes" model, it advocates for a circular economy within the petroleum industry, promoting self-sustaining operations. With increasing environmental concerns and regulatory pressures, this review offers valuable insights into cost-effective, scalable, and eco-friendly remediation strategies, supporting sustainable petroleum waste management.