Drilling and Completion Fluids Market is forecast to reach US$9.2 billion by 2026, after growing at a CAGR of 5.7% during 2021-2026. Drilling and completion fluids used in oil & gas extraction. Drilling fluids or drilling mud minimizes formulation damages of extra fluids and completion fluids filter of extracted oil & gas during well construction. Hence, oil-based drilling fluids control the water loss of oil-based drilling fluid at high temperatures and high pressure. Drilling and completion fluids manufactured by various chemicals such as oil, mud, and others provide hydrostatic pressure and are used to minimize corrosion. It also prevents formation fluids from entering the wellbore. Hence, these fluids reduce the drilling time and enhance the wellbore stability to maximize the recovery from the reservoir. Hence, such factors are estimated to grow the demand for drilling and completion fluids.
Impact of Covid-19
Due to lockdown, the production of oils was stopped in 2020. According to the US Energy Information Administration (EIA), Natural gas production from in the U.S. regions fallen by 316 MMcf/d from March to April 2021. Thus, the decline in production hindered the consumption of drilling and completion fluids.
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Report Coverage
The report “Drilling and Completion Fluids Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the drilling and completion fluids industry.
By Well Type: High-Pressure/High-Temperature Well, and Conventional Well
By Fluid System Type: Water-Based Fluid System, Oil-Based Fluid System, and Synthetic-Based Fluid System
By Application: Offshore and Onshore
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)
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Key Takeaways
- North America dominated the market of drilling and completion fluids market due to increasing oil & gas production activities in North American countries such as United States, Mexico, and Canada.
- According to the US Energy Information Administration, in Mexico, crude oil production increased by 172,000 b/d in March 2021 from February's 983,000 b/d2021.
- Additionally, increasing drilling activities in Asian countries such as India, China, and others is estimated to grow the demand for drilling and completion fluids as it is used in well construction for excellent stability.
Figure: North America Drilling and Completion Fluids Market, 2021-2026 (US$ Billion)
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Drilling and Completion Fluids Market Segment Analysis – By Well Type
High pressure/High-Temperature well type segment held the largest share in the global drilling and completion fluids market in 2020. HPHT is applied to wells that have both characteristics, high pressure, and high temperature. This type is used to reduce the drilling risk by enabling better well placement and improved borehole stability. Thus, the boreholes are stable with high temperatures between 150°C and 200°C and high pressures between 10,000 pounds per square inch and 20,000 pounds per square inch. High-pressure, high-temperature drilling conducted with synthetic- or oil-based fluids to minimize the risk of a reaction with water-based fluids and the volatile solids in HPHT wells, which is estimated to grow the demand of HPHT well for drilling and completion fluids.
Drilling and Completion Fluids Market Segment Analysis – By Fluid System Type
Oil-based fluid systems held the largest share in the global drilling and completion fluids market in 2020 as they can be used to reduce the filtration loss at high temperature and high pressure. Oil-based drilling treatment enhanced plugging drilling fluid or drilling muds system which makes it suitable for shale gas well construction. It is also used to improve plugging ability and excellent performance in other aspects. Thus, due to such factors oil-based system is widely used for drilling and completion fluids.
Drilling and Completion Fluids Market Segment Analysis – By Application
Onshore segment dominated the global drilling and completion fluids market in 2020 and is growing at a CAGR of 4.9% during 2021-2026. Drilling fluid or drilling muds are used to maintain well control and eliminate drill cuttings from holes drilled in the earth. Drilling and completion fluids offer various functions such as controlling formation pressures, remove cuttings from the wellbore, seal permeable formations, transmitted hydraulic energy to downhole tools, and maintaining wellbore stability. These fluids transfer thermal energy to extremely hot drilling environments, thus heat exchangers may be used at the surface to cool the drilling mud. Thus, these are widely used in well construction which is estimated to grow the demand for the drilling & completion fluids.
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Drilling and Completion Fluids Market Segment Analysis – By Geography
North America dominated the global drilling and completion fluids market in 2020 with 34%, due to increasing oil & gas production and drilling projects in North American countries such as United States, Mexico, and Canada. According to the U.S. Energy Information Administration (EIA), 13 offshore drilling projects could account for about 200,000 barrels per day (bpd) of total Gulf of Mexico crude oil production by 2022. Thus, the Gulf of Mexico (GOM), accounts for 15%–16% of crude oil production of the United States. Hence, GOM crude oil production is forecast to reach 1.71 million bpd in 2021 and 1.75 million bpd in 2022. Furthermore, according to Energy Shale Gas Production, the total natural gas production is projected to contribute 30% and more than 75% in Canada & Mexico, respectively by 2040. Hence, such factors are estimated to grow the demand for drilling and completion fluids in the region.
Drilling and Completion Fluids Market Drivers
Increasing Production Activities in Oil & Gas Sector
According to U.S. Energy Information Administration (EIA), In 2020, the United States' natural gas production reached 34.4 trillion cubic feet (Tcf) and the global crude oil production will average 26.9 million b/d in 2021 and 28.7 million b/d in 2022. In Egypt, oil production increased from 560 thousand barrels per day in January 2021 to 559 thousand barrels per day in December 2020. Additionally, according to the Oil & Natural Gas Corporation (ONGC), in India, crude oil production was 1788.92 TMT in 2020 which is 1.24 higher than in 2019. According to India Brand Equity Foundation (IBEF), oil production is expected to rise 36 billion cubic meters (bcm) in 2021. Hence, the growth in the oil & gas production sector will influence the demand for drilling muds and completion fluids. In addition, according to the International Monetary Fund (IMF), the crude oil production in United Arabia Emited was 2.78 million barrels per day and is expected to grow 2.85 million barrels per day in 2021 and 2.95 million barrels per day in 2022. Hence, such activities are estimated to grow the demand for drilling and completion fluids.
Growing Investment in Drilling Activities in Asia Pacific Region
Drilling and completion fluids help to increase wellbore stability, maximize recovery from the reservoir, and help to carry out under high temperature & pressure conditions. Thus increasing well construction activities is positively impacting the market. In 2019, India’s state-owned company Oil & Natural Gas Corporation (ONGC) allotted INR 6,000 crore in drilling 200 wells over the next seven years in Assam. Additionally, in 2019-2020, more than 500 wells were drilled for the next 4 consecutive years. Furthermore, the Mumbai High North Redevelopment project was approved in April 2019 with an investment of Rs. 32,288 million for drilling of 43 wells and other redevelopment work which is expected to be completed by March 2022. Hence, such growing activities is estimated to grow the market size during the projected year.
Drilling and Completion Fluids Market Challenges
Impact on Environment and Health of Drilling Muds
Drilling and completion fluids are essential for onshore or offshore drilling activities however, these are disrupting wildlife and damaging public lands. Drilling muds are composed of numerous chemicals such as bentonite clay with additives such as barium sulfate, calcium carbonate, or hematite which are harmful to the environment and human health. In addition, drilling muds poses health and environmental risk which may hamper the consumption of drilling and completion fluids.
Drilling and Completion Fluids Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the drilling and completion fluids market. Major players in the Drilling and Completion Fluids Market include:
1. Schlumberger Limited
2. Baker Hughes
3. Halliburton Company
4. CES Energy Solutions Corp.
5. National-Oilwell Vacro Inc.
6. Tetra Technologies Inc.
7. Anchor Drilling Fluids USA Inc.
8. Newpark Resources Inc.
9. Chervon Phillips Chemical Company LLC
10. Scomi Energy Services BHD, and among others.
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