The global drilling fluid market is expected to witness a CAGR of 9.40% during the forecast period to reach a market size of US$1,670 million by 2022 from a market size of US$1,065 million in 2017. Drilling fluids are employed to help the boring of boreholes into the earth in many applications. Apart from being used in many complex applications such as drilling of oil and natural gas, it can also be used for simpler boreholes such as water wells. Water-based muds, non-aqueous muds, and gaseous drilling fluid can be used for drilling fluids. The primary function of drilling fluids incorporates giving hydrostatic pressure to keep development liquids from going into the wellbore, keeping the drill bit cool and clean amid drilling, doing drill cuttings, and suspending the bore cuttings while boring is delayed. Drilling fluid additives are additives that generally resolve many issues often found in mineral exploration drilling activities. Such additives lubricate the equipment, lower the abrasion and prevent rusting of rods. They can enhance drilling operations in a dry hole, stabilize the walls of the drill hole, allow rock cuttings to be flushed out of the drill hole, and solidify abrasive and non-stable grounds. They are like gel and can hold intact a crumbling core, minimize water loss, decreases abrasion and friction which cools the bit, hence extending its life.
The growing energy demand globally owing to population growth is the major driver for the drilling fluids market. Also, with the successful implementation of nanotechnology in the oil and gas industry, a large number of companies have been investing heavily in drilling fluids. On the brighter side, most of the onshore locations in the global drilling fluids market are currently facing depletion which has prompted many companies to drill deeper. This requires a much larger amount of drilling fluid to function in an optimum condition which will create a higher demand for drilling fluids in most regions.
However, the drilling fluids market faces challenges owing to various environmental and socioeconomic risk factors associated with the drilling industry. Factors like huge demand for clean and renewable energy globally, the highly volatile crude oil market, strict government laws and regulations, and environmental concerns related to exploration activities may restrain the market growth.
Onshore oil and gas dominate the drilling fluids market. The Middle East and Africa region accounted for a major share in the global drilling fluids market. North America dominates the global drilling fluids followed by the Middle East, and Asia Pacific region. Government support in India and China is expected to boost the drilling fluids market in the region over the forecast period. New oil discoveries in the Golden Triangle (Offshore Brazil, Gulf of Mexico, and West Africa) have led to an increasing number of companies investing in the region, thereby positively impacting the demand for these fluids.
The drilling fluid additives contain many elements in them. For instance, drilling additives contain weighting compounds to augment the mud density; corrosion inhibitors as the drilling activities may involve usage of several metallic components like the aluminum bisulfate, protect- pipes of zinc chromate, zinc carbonate, and many others; dispersant such as iron lignosulfonates that allow agents to break up solid clusters of elements in smaller parts which can be easily ported by the drilling fluid; and flocculent which is an acrylic polymer that exacerbates the assistance in the development of a cluster of suspended particles. The global market of drilling fluid additives will be driven by the expansion of the energy sector, increase in crude oil production, and increasing application of bio-based drilling fluids. Moreover, using technology for oil recovery with the help of carbon dioxide may also impact the market growth. However, decreasing shale gas operations in the US may create a negative impact on the market growth.
Geographically, the Asia Pacific region and the Middle East economies are expected to become a favorable market for the drilling fluid additives market on account of the increased demand for oil. Countries like Saudi Arabia, China, UAE, and Russia are potential markets for drilling fluid additives. Moreover, the expansion of the energy sector to withstand the increasing demand of populous countries of the APAC region may also impact the market in the APAC region.
This section of the report presents a detailed research methodology for calculating market size and forecasts, secondary data sources used and the primary inputs which were taken for data validation. This section also outlines various segments which have been covered as part of the report.
Comprehensive market dynamics have been analyzed through key market driving factors, challenges to growth, and the opportunities which exist for vendors in the current scenario. This section of the report also provides supplier and industry outlook as a whole; key industry, global and regional regulations which are determining the market growth, and a brief technological aspect of Drilling Fluid Additives. Complete industry analysis has also been covered by Porter’s five forces model as a part of this report section.
Competitive intelligence section deals with major players in the market, their growth strategies, products, financials, and recent investments among others. Key industry players profiled as part of this section are Baroid Industrial Drilling Products, Halliburton, and Prince Energy among others.
Drilling Fluid Additives Market has been segmented based on type, fluid formation, and geography as follows:
By Fluid Formation
Middle East and Africa