December 8, 2024
Ict

Drilling Fluids Market is expected to be Flourished by Increasing Shale Gas Activities

Drilling Fluids MarketDrilling fluids, also known as drilling muds, play a crucial role in oil and gas drilling operations. They work to lubricate and cool the drill bit and drill string when it rotates at high speeds, controlling formation pressures and preventing cave-ins of boreholes and subsequent blowouts. The global drilling fluids market encompasses water-based fluids, oil-based fluids, synthetic-based fluids, and other fluid systems. Water-based fluids dominate the market owing to their environment-friendly nature. They are primarily used in conventional drilling operations involving sandstone and carbonate reservoirs. Oil-based fluids find increasing usage in complex drilling projects involving shales with low porosity and permeability. Drilling fluid system manufacturers provide regular monitoring and analysis of drilling fluid properties to ensure optimal drilling performance.

The global Drilling Fluids Market is estimated to be valued at US$ 8.85 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing shale gas exploration and production activities across North America and Asia Pacific is expected to boost the drilling fluids market growth over the forecast period. According to the International Energy Agency (IEA), global shale gas production is projected to increase by 45% from 2020 to 2024, with 60% of the rise coming from the United States. Countries like China and India are also ramping up their shale gas extraction efforts to reduce dependence on energy imports. The demand for technologically advanced, environment-friendly, and cost-effective drilling fluids iswitnessing significant uptick from shale gas drilling projects involving complex well trajectories and extended reach laterals. Additionally, revival in global crude oil prices post-Covid is encouraging upstream oil companies to scale up exploration spending, which is another key factor likely to favor positive market outlook during the forecast period.

Segment Analysis
The global drilling fluids market is dominated by oil based drilling fluids segment. Oil based drilling fluids have extensive uses in drilling operations as they form stable filter cakes and offer better lubricity compared to other fluids. Their strong adhesion properties and compatibility with drilling tools makes them suitable for deep drilling activities where hydrostatic pressure and temperature are high. Majority of ultra-deepwater and deep gas wells use oil based fluids owing to their superior shale inhibition and solids suspension abilities. However, environmental regulations regarding offshore drilling and well abandonment have boosted development of water based and synthetic drilling fluids.

PEST Analysis
Political: Stringent government regulations pertaining to use of oil based fluids and disposal of drilling waste are driving adoption of eco-friendlier synthetic and water based alternatives. Safety norms regarding offshore drilling operations are also getting stronger.
Economic: Volatility in crude oil prices influences investment in exploration and production activities which in turn impacts demand for drilling fluids. Higher rig utilization and well capital investments provide opportunities for fluid companies.
Social: Growing environmental awareness has increased scrutiny on drilling operations. Proper management of drilling waste and offshore emissions are priorities for fluid manufacturers.
Technological: Advancements in geo-steering, horizontal drilling and shale exploration have expanded applications for high performance, inhibitive and low toxicity drilling fluids. Automation, digitalization and improved fluid systems also aid wellbore stability.

Key Takeaways
The global drilling fluids market is expected to witness high growth over the forecast period aided by revival in crude demand post pandemic, rising investments in complex oil and gas projects globally and growing shale gas extraction.

North America currently dominates and is expected to retain its position led by continuous expansion of unconventional oil and gas production in the US.

Key players operating in the Drilling Fluids Market  are Baker Hughes Company, Schlumberber Limited, Weatherford, DIAMOCO Group, Conquest Drilling, QMax, ChemFor, Dynamic Drilling Fluids, Halliburton, Newpark Resources Inc., AES Drilling Fluids, NOV Inc., Stellar Drilling Fluids. LLC, Secure Energy, Total Energies, and Valence Drilling Fluids, LLC.

Money Singh
+ posts

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →