The global Drilling Fluids Market was estimated to be at $6,100.0 million in 2021, which is expected to grow with a CAGR of 7.8% and reach $12,927.6 million by 2031. The growth in the global drilling fluids market is expected to be driven by increasing onshore and offshore drilling activities due to the rise in energy demand.
Market Lifecycle Stage
Drilling fluids are a large and growing industry. Increased research and development activities are underway to develop more efficient drilling fluid while reducing the cost. Additionally, a large number of wells are projected to be drilled in the next few years.
Impact
Increased demand for energy and an increase in drilling processes for oil exploration and production are some of the key driving factors for the drilling fluids market. The shift toward the usage of water-based drilling fluids is more prominent in the oil and gas industry owing to its environment friendly and cost-effective nature. The U.S. has the largest industry for drilling fluids as the oil and gas companies are using these fluids for smooth and efficient well drilling.
Impact of COVID-19
COVID-19 has had a significant global impact on the supply chain of the drilling fluids market. Moreover, the oil and gas industry witnessed a substantial decline in demand due to the several lockdowns and restrictions, which resulted in decreased demand for drilling fluids.
Market Segmentation:
Segmentation 1: by Application
• Onshore
• Offshore
The global drilling fluids market in the application segment is expected to be dominated by onshore applications. This is due to increased oil and gas exploration activities at onshore oil fields and the advantage of the availability of customized drilling fluids according to the formation location.
Segmentation 2: by Product Type
• Water-Based Drilling Fluids
• Oil-Based Drilling Fluids
• Synthetic-Based Drilling Fluids
• Others
The global drilling fluids market is dominated by water-based drilling fluids. This is due to its cost-effectiveness and lower environmental impact. Moreover, growing concern about the toxicity of other drilling fluids is expected to create demand for water-based drilling fluids.
Segmentation 3: by Region
• North America - U.S., Canada, and Mexico
• Europe - Norway, Turkey, Russia, and Rest-of-Europe
• China
• U.K.
• Asia-Pacific and Japan - India, Indonesia, Australia, and Rest-of-Asia-Pacific and Japan
• South America - Brazil, Venezuela, Colombia, Rest-of-South America
• Middle East and Africa - Saudi Arabia, Iran, Iraq, Kuwait, U.A.E., and Rest-of-Middle East and Africa
North America is expected to be the largest market for drilling fluids. This is mainly because growing oil and gas production with substantial oil field development, particularly in the U.S., is projected to trigger the demand in the region.
Recent Developments in Global Drilling Fluids Market
• In May 2019, Baker Hughes Company introduced Delta-Teq low-pressure-impact drilling fluid, a non-aqueous drilling fluid that allows operators working in slender pressure windows to meet their drilling objectives by significantly reducing the threats associated with this activity.
Demand – Drivers and Limitations
Following are the demand drivers for the drilling fluids market:
• Increasing Onshore and Offshore Drilling Activities
• Increasing Focus on Shale Gas
The market is expected to face some limitations too due to the following challenges:
• Volatility in Prices of Crude Oil to Impact the Drilling Fluids Consumption
• Rise in Cost of Deepwater and Ultra-Deepwater Drilling
• Impact of Drilling Fluids on the Environment
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How Can This Report Add Value to an Organisation?
Product/Innovation Strategy: The product segment helps the reader understand the different types of drilling fluids available for drilling wells and their potential globally. Moreover, the study provides the reader with a detailed understanding of the different drilling fluids applications offshore and onshore.
Growth/Marketing Strategy: The global different drilling fluids market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. For instance, in May 2021, Baker Hughes Company and Akastor ASA announced an agreement to create a joint venture company to bring together Baker 'Hughes' Subsea Drilling Systems (SDS) business with Akastor's wholly owned subsidiary MHWirth AS. The company will deliver a full-service of offshore drilling equipment that will provide consumers with a broad portfolio of products and services.
Competitive Strategy: Key players in the drilling fluids market analyzed and profiled in the study involve drilling fluids manufacturers. Moreover, a detailed competitive benchmarking of the players operating in the global drilling fluids market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Analyst Thoughts
According to Shivam Priyadarshi, Principal Analyst, BIS Research, "The drilling fluids are expected to be the best option for carrying out a smooth well drilling. With the increasing government support to increase oil production, the growth of the drilling fluid industry is expected to be exponential."
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