Asia-Pacific Drilling Fluids Market Size, Share, Opportunities, And Trends By Fluid Type (Water-Based, Oil-Based, Others), By Application (On-Shore Drilling, Off-Shore Drilling), By End-Users (Oil & Gas, Mining), And By Geography - Forecasts From 2023 To 2028

The Asia Pacific drilling fluids market is expected to grow to US$2.746 billion in 2028, up from US$1.741 billion in 2021, with a CAGR of 6.73% during the projected period.

The rising demand for oil in the region is anticipated to increase the market for drilling fluids. Countries across the Asia Pacific are one of the largest importers of oil in the world. Additionally, in the Asia Pacific region, the discovery of oil and gas reserves coupled with the increasing activities in deep-water and ultra-deep-water drilling is also one of the major driving factors for drilling fluid. For instance, in May 2023, Oil and Natural Gas Corporation Limited made discoveries of oil and gas in MBS171HAA-1 “Amrit” in OALP (Open Acreage Licensing Policy) block MB-OSHP-201/1 in Mumbai offshore in the Arabian Sea. Another remarkable discovery is MB-SHDA-1. With these discoveries, the ONGC continues to make discoveries in consecutive years. Hence, such discoveries are facilitating the market growth for drilling fluids in the region.

Increasing drilling applications in the region

Drilling fluids are one of the crucial components in drilling processes for oil and gas wells and are widely used for efficient drilling. The drilling applications are increasing in countries such as India, and China, as there is an increase in oil and production in these countries. Additionally, exploration and production activities are increasing in the region, which is one of the reasons for the intensified demand for oil and gas. For instance, according to the Ministry of Mines, the mining and quarrying activities in India increased by 9.8% in December 2022 compared to December 2021. The production level for coal in December 2022 was 833 lakh tones and for lignite, it was 35 lakh tones. Hence such increasing production of mineral in the country are pushing the market in an upward direction.

Increasing production of metallic minerals in the region

According to the India Bureau of Mines, the production of metallic minerals is increasing in India. The bauxite production in 2021-22 was 22,494 thousand tonnes which registered an increase of 10% over the previous year. Chromite registered the highest growth of 34% compared to the previous year. The production of chromite in 2021-22 was 3,786 thousand tonnes. Copper, lead, and zinc ores registered a growth of 6% and 9% in the year 2021-2022. The total production of manganese in India in 2021 –22 was 2,696 thousand tonnes in 2021-22. Hence, such increased production can be seen in many developing countries in the Asia Pacific region which is one of the major reasons boosting the market growth in the forecasted period.

China is anticipated to hold a significant market share in the region

The expansion is ascribed to the growing demand in the energy sector, which is anticipated to propel the growth of the oil and gas market in China during the forecast period. The need for oil and gas production has also been driven by a rise in the need for crude oil and gas from a variety of industrial sectors, including transportation and power plants. Throughout the projection period, it is anticipated that growing worries about collapsing boreholes, managing solid waste, and spill control will provide new possibilities for the drilling oil market.

China's National Energy Agency established a domestic crude oil production target of about 1.5 billion barrels for 2022 after the government stated in May 2022 the importance of exploring and producing crude oil. This goal is a 2% rise above the target for 2021. The national oil corporations (NOCs) have declared that capital expenditures (CAPEX) rose by 4.6% in 2022 compared with 2021 in response to China's priority for energy security. Except for Saudi Aramco, PetroChina, and Sinopec had the second and third-highest CAPEX in the world for 2022 if their plans come to pass. Sinopec plans to produce 281.2 million barrels of crude oil in 2022, up over 1.5 million barrels from the year before.

Market Key Developments

• In March 2023, in a deal that would greatly increase its downstream presence in China, Aramco, one of the top integrated energy and chemicals companies in the world, signed final agreements to pay RMB 24.6 billion ($3.6 billion at current exchange rates) for a 10% stake in Shenzhen-listed Rongsheng Petrochemical Co. Ltd. ("Rongsheng").
• In March 2021, Baker Hughes and Akastor ASA announced a joint venture to deliver best-in-class offshore drilling solutions globally. The companies aim to deliver full-service offshore drilling equipment and provide customers with a broad portfolio of products and services.

Asia-Pacific Drilling Fluids Market Scope:

Segmentation:

• By Fluid Type
  • Water-Based
  • Oil-Based
  • Others
• By Application
  • On-Shore Drilling
  • Off-Shore Drilling
• By End-User
  • Oil and Gas
  • Mining
• By Country
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Taiwan
  • Others