The global drilling fluids market is expected to reach USD 12.55 billion by 2024, according to a new report by Grand View Research, Inc. The increasing drilling activities, coupled with shifting industrial players’ focus towards exploration and development of unconventional gas reserves employing horizontal drilling techniques, is expected to translate into product demand.
Escalating environmental concerns regarding harmful effects of using oil-based fluids are leading to increasing adoption of water-based muds. Manufacturing companies are shifting their focus towards developing innovative nanotechnology-based solutions to overcome technological and environmental challenges. Ongoing R&D investments by key industry participants such as Baker Hughes and Halliburton to enhance their product offering are anticipated to steer foam based or non-aqueous drilling fluid demand over the next eight years.
Water-based fluids (WBF) emerged as the leading product segment and accounted for 49.7% of the total revenue in 2015.High demand may be attributed to the low toxicity of the finished products in the category. The ability of WBF to minimize erosion of weak rock formations and circulation loss is anticipated to steer the demand over the forecast period.
U.S. drilling fluids market revenue by product, 2014 – 2024 (USD Million)
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Further key findings from the report suggest:
- Onshore oil & gas was the leading application segment and accounted for 64.3% of total revenue in 2015. Growing number of research initiatives to develop abandoned or depleting oil wells and renewed projects in various onshore oilfields particularly in the Middle East and the U.S. are anticipated to drive penetration in the segment over the long term.
- North America was the leading consumer and accounted for 25.5% of global revenue in 2015. Significant oilfield development in Texas, Gulf of Mexico, and North Dakota along with significant Federal government support for unconventional hydrocarbon resource development in the U.S. is expected to boost industry expansion.
- Asia Pacific is estimated to grow at a CAGR of 5.8% from 2016 to 2024 and emerge as the fastest growing regional market over the forecast period. This can be attributed to the increasing drilling activities in the mature oil fields located majorly in China, India, and Indonesia.
- Key market players in the global drilling fluids industry include Halliburton, Newpark Resources, Baker Hughes, Weatherford International, Schlumberger, and National Oilwell Varco. These companies offer diverse product portfolio for the end-use companies and are highly integrated across the value chain.
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