Global drilling fluids market was worth USD 8.0 billion in 2019. It is expected to grow at a 4.2% CAGR between 2020 and 2027. Exploration and production companies have increased their investment in offshore and onshore drilling to meet growing demand for natural gas and crude oil in many energy-intensive sectors such as power generation, manufacturing and transportation.
The oil and gas markets around the globe were positively affected by the recovery in oil prices between 2017 and 2018. The average global oil-rig count increased by around 2211 in 2018, compared to 1,593 in 2016. This was a major boost for drilling activities all over the globe. The forecast period will see a rise in drilling fluid demand due to increased efforts to maintain energy demand from North America and Europe and the increasing number of deepwater discovery in the Persian Gulf, and Pacific regions.
In order to increase economic production from fossil fuels, the U.S. government has invested in unconventional oil and gas drilling projects. In January 2018, for example, the United States Department of Energy directed $30 million to R&D activities in unconventional shale development. This has led to a higher demand for drilling fluids.
There are growing environmental concerns about the disposal of drilling fluids. Therefore, regulatory bodies in Canada, Australia, Norway, Saudi Arabia, the U.S. and Canada have issued stringent regulations on the disposal and treatment. OSPAR Commission is a joint effort of 15 countries and the EU to preserve the North-East Atlantic marine environment. It has established procedures for the disposal of oil-based and water-based fluids in the U.K. The Canadian Association of Petroleum Producers and the National Oceanic and Atmospheric Administration have set strict guidelines regarding the disposal of drilling fluids in North America.
Companies have also been heavily involved in R&D to develop bio-based drilling solutions derived from vegetable oils. Water-based drilling fluids are being increasingly adopted due to increasing environmental concerns. Market growth is expected to be slowed by increasing safety, environmental, and health concerns about mud discharge and disposal. To overcome environmental and technological challenges, manufacturing companies are shifting to nanotechnology-based solutions.
With a market share greater than 51.0%, water-based fluids became the largest product segment in 2019, with more than 51.0%. They are expected to see increased penetration and growth rates due to their cost-effectiveness, lower environmental impact and low environmental impact from the discharged cuttings or mud. Over the forecast period, water-based fluids will see a rise in demand due to the increasing focus on improving the thermal and inhibitive performance of water-based fluids to compete with nonaqueous fluids for difficult applications like offshore and onshore shelf operations.
Because of their excellent thermal stability, borehole control and penetration rates, synthetic-based fluids will experience a substantial growth rate. This helps in reducing overall costs. Due to the negative environmental impact of waste discharge, the oil-based fluids market is expected to see a lower growth rate during the forecast period.
Foams, mists, gas, dust and aerated liquids are all other drilling fluids. These fluids are useful in medium-density drilling mediums where dry and hard formations make few formation liquids. The other drilling fluids sector is expected to grow at a substantial rate due to its lower maintenance costs and decreased lost circulation over the forecast period.
With a market share of more than 60.0% in 2019, the largest application segment was onshore. The forecast period will see an increase in oil drilling activity to meet growing energy demands. Additionally, the oil and gas market will be driven by rising upstream spending to meet oil production goals, which in turn will drive demand for drilling fluids.
The offshore segment, on the other hand is expected to experience the fastest growth rate during the forecast period. The recovery in oil prices has resulted in an increase in oil exploration in offshore oil fields. In January 2019, offshore rigs experienced a 23.0% increase in activity, as opposed to the 2.0% growth seen in onshore rigs. The demand for drilling fluids in offshore locations will continue to grow due to the increasing demand for mud in deep waters, harsh environments and remote areas. Companies are now using synthetic- and water-based fluids to reduce maintenance costs and protect the environment in offshore areas.
North America was the dominant market for drilling fluids in 2019, thanks to factors like the shale boom in North America and the growing offshore drilling activity in the Gulf of Mexico. Over the forecast period, the market will grow due to the increased discovery of untapped oil and natural gas resources. The region is expected to see an increase in drilling activity over the forecast period due to large untapped hydrocarbon reserves, including and shale oil.
The Middle East is expected to see growth due to offshore activities like contract signing and increased oil production in different regions including Iran and Qatar. Over the forecast period, this is expected to further drive offshore exploration and production activities. Other factors, such as the revival of oil wells abandoned in the Persian Gulf or the sale of rig operations, are expected to increase offshore oil and gas production.
Due to the increased exploration of oil fields from untapped resources, the Asia Pacific market will experience significant growth. Australia, Brunei and Papua New Guinea are just a few of the countries that have large untapped offshore oil resources.
Baker Hughes, Newpark Resources and Halliburton are key market players in this global market. These companies provide a wide range of drilling fluids and services to operators companies. They are also highly integrated throughout the value chain.
Due to growing demand from the industrial sector for high-tech drilling technology, companies are focusing more on technology-based products. Manufacturing companies are focused on field service and batch testing, which can help with application problems and potential solutions. Baker Hughes, for example, launched DELTATEQ in May 2019. It is a drilling fluid that has a low pressure impact. This non-aqueous drilling fluid allows operators to operate in tight pressure windows, reducing hydraulic impact and minimizing risk.
This report predicts revenue growth at the global, regional and country level and offers an analysis of industry trends in each sub-segment from 2016 to 2027. Grand View Research segmented the global market for drilling fluids based on product, region, and application.
Product Outlook (Revenue USD Million, 2016-2027)
Oil-based fluids (OBF).
Water-based fluids (WBF).
Synthetic-based fluids
Other
App Outlook (Revenue USD Million, 2016-2027)
Offshore
Offshore
Regional Outlook (Revenue USD Million, 2016-2027)
North America
The U.S.
Canada
Mexico
Europe
The U.K.
Russia
Norway
Azerbaijan
Kazakhstan
Asia Pacific
China
India
Indonesia
Malaysia
Pakistan
Myanmar
Singapore
Australia
Vietnam
Thailand
Middle East
Saudi Arabia
UAE
Qatar
Kuwait
Iran
Iraq
Africa
Algeria
Libya
Nigeria
Gabon
Zaire
Central & South America
Brazil
Argentina
Venezuela
Columbia
Peru
b. In 2019, the global drilling fluids market was worth USD 8.0 billion.
How is the market for drilling fluids growing?b. From 2020 to 2027, the global drilling fluids market will experience a 4.2% CAGR. Exploration and production companies have increased their investments in offshore and onshore drilling to meet growing demand for oil and natural gas.
Which segment had the largest share of the drilling fluids market?b. b. They are expected to see increased penetration and growth rates due to their cost-effectiveness, lower environmental impact and low toxicity from the mud and cuttings.
Which are the major players in the drilling fluids marketb. Baker Hughes, Newpark Resources and Halliburton are the key market players in this global market.
What are the driving factors for the drilling fluids marketb. The forecast period will see an increase in oil drilling activity to meet growing energy demands.
Up Market Research published a new report titled “Drilling Fluids Market research report which is segmented by Application (Offshore, Onshore), by Product (Oil-based, Synthetic-based, Water-based), By Players/Companies Schlumberger These companies offer a diverse portfolio of drilling fluids in terms of both, Baker Hughes, Halliburton, products and services for operator companies and are highly integrated across the value chain, National Oilwell Varco Weatherford International, Newpark Resources”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Drilling Fluids Market Research Report |
By Application | Offshore, Onshore |
By Product | Oil-based, Synthetic-based, Water-based |
By Companies | Schlumberger These companies offer a diverse portfolio of drilling fluids in terms of both, Baker Hughes, Halliburton, products and services for operator companies and are highly integrated across the value chain, National Oilwell Varco Weatherford International, Newpark Resources |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 201 |
Number of Tables & Figures | 141 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Application (Offshore, Onshore), by Product (Oil-based, Synthetic-based, Water-based).
Drilling Fluids Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Drilling Fluids Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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