Drilling fluids, commonly known as drilling muds, play a crucial role in enabling oil & gas exploration by maintaining wellbore stability and removing cuttings from the bottom of the borehole during drilling operations. Some key advantages of drilling fluids include improved drilling efficiency, well control, and protection of producing formations from damage. The rising global energy demand along with depletion of existing reserves have accelerated oil & gas exploration activities in recent years. This has significantly fueled the demand for high-performance drilling fluids worldwide.
The global Drilling Fluids Market is estimated to be valued at US$ 8.43 Bn in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased exploration spending by major oil companies in recent past has particularly driven the demand for drilling fluids. As per the International Energy Association, the global upstream oil and gas spending increased by around 11% to nearly US$ 491 billion in 2021. The growing exploration activities to cater to rising energy demand are expected to propel the drilling fluids market over the forecast period. Furthermore, the advancing offshore exploration projects owing to depletion of onshore reserves will continue boosting the market for high-performance drilling fluids specifically designed for offshore applications.
Segment Analysis
The drilling fluids market is dominated by oil-based fluids which accounts for over 40% share. Oil-based fluids are preferred for drilling through formations containing swelling clays and shales to minimise damage to the formation. It provides better lubrication and offers excellent suspension properties for cuttings removal during drilling. However, growing environmental concerns regarding oil contamination have increased demand for water-based and synthetic-based fluids.
Key Takeaways
The Global Drilling Fluids Market Size is expected to witness high growth over the forecast period driven by rising exploration and production activities around the world. Rapid industrialization along with growing population has increased demand for oil and gas, boosting the drilling market.
Regional analysis: North America dominates the global market with over 30% share owing to rising exploration of shale reserves in the US and Canada. The market in Asia Pacific is anticipated to grow at the fastest pace supported by increasing drilling activities in China, India and Southeast Asian countries. Major operators are shifting focus towards the region in view of significant reserves.
Key players analysis: Key players operating in the drilling fluids market are Orana Group, AECOM, Babcock International Group Plc, Westinghouse Electric Company LLC, Enercon Services Inc., KDC Contractors Limited, NUVIA Group, Onet Technologies SAS, and Sogin S.p.A. Major players are investing in product development and acquisition strategies to strengthen their footing in the market.
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