The "Global Drilling Fluids Market - Forecasts from 2020 to 2025" report has been added to ResearchAndMarkets.com's offering.
The global drilling fluids market is expected to grow at a CAGR of 6.47% over the forecast period to reach a total market size of US$16.278 billion by 2025, increasing from US$11.175 billion in 2019.
Drilling fluids, also known as drilling mud, plays an important role in facilitating the drilling process by suspending cuttings, controlling pressure, stabilizing exposed rock, providing buoyancy, cooling, and lubricating.
Every drilling activity requires drilling fluids and they are used extensively across the globe. Drilling fluids are water, oil, or synthetic-based, and each composition provides different solutions in the well. Drilling fluids are essential to drilling success, as it maximizes recovery and minimizes the amount of time taken to achieve the required goal. Drilling deeper, longer, and more challenging wells being practiced has been made possible by improvements in drilling technologies, including more efficient and effective drilling fluids.
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, many 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, highly volatile crude oil market, strict government laws and regulations, and environmental concerns related to exploration activities may restrain the market growth.
Furthermore, due to growing environmental concerns on account of harmful effects of using oil-based fluids major players are investing heavily in research and development activities leading to the growing adoption of water-based drilling fluids. Therefore, players are shifting their resources on developing new solutions based on nanotechnology to overcome technological and environmental challenges they are facing in the current time and thus opening a wide array of opportunities for the market.
Oil and gas industry
For the extraction of oil and gas, drilling has to be conducted in the oilfields, which makes use of the drilling fluids in order to make the drilling process more efficient and effective, thus, improving the yield of the oil and gas, by reducing the wastage. Some additives are also added to the drilling fluids to increase the viscosity, lower the shear rate when drilling is being performed in high angle situations or deeper oil well. In conjunction, drilling fluids are also able to facilitate the collection of cutting and shavings on the surface to prevent contamination of the oil. Moreover, some of the companies are expanding drilling operations to meet the increasing energy demands.
North America is holding a significant share in the market
By geography, the global Drilling Fluids market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a significant share in the market owing to huge reserves of unconventional hydrocarbon reserves (shale gas) coupled with the growth in gas exploration and increase in drilling activity for oil and gas in the region. Besides, the governments in the region have also formed policies and regulations for the prevention of the degradation of the environment which opens the range of opportunities for new advance products. The Asia Pacific region is expected to witness exponential growth on account of the rise in the exploration of oil fields from untapped reserves due to lack of technology. Also, countries like India and China are investing heavily to reduce the dependency on crude imports showing growth opportunities for drilling fluid manufacturers and vendors in the region.
Baker Hughes, Inc. (GE)
Schlumberger Technology Corporation
Newpark Drilling Fluids
Canadian Energy Services
Flotek Industries, Inc.
Key Topics Covered:
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Global Drilling Fluids Market Analysis, By Fluid Type
5.5. Other fluid types
6. Global Drilling Fluids Market Analysis, By Application
7. Global Drilling Fluids Analysis, by Geography
7.2. North America
7.3. South America
7.5. The Middle East and Africa
7.6. Asia Pacific
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/76xqu6
View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005693/en/
Laura Wood, Senior Press Manager
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