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Drilling chemicals are majorly used in processes such as oil & gas exploration, metal & mineral extraction, coal seam gas drilling, and bore well drilling. Drilling chemicals are useful in terms of cooling and lubrication of drilling equipment, maintaining the pressure, removing cuttings from bore wells, and providing support and stabilizing the bore well area. Drilling chemicals are widely used to aid in drilling boreholes into the earth’s crust.

Severe environmental conditions such as desert topography, extreme high and low temperatures, and dry environment necessitate the deployment of various types of drilling chemicals either as a cooling agent or as a lubricant for oil field drilling processes. Among applications, the onshore drilling segment holds a dominant position in the market.

Global Drilling Chemicals Market was valued at US$ 11974.03 Mn in 2021 in terms of revenue, exhibiting a CAGR of 5.67 % during the forecast period (2022 to 2030).

Drivers

Investments in onshore and offshore oil and gas drilling have grown substantially in various parts of the world to extract fossil fuels. Enormous demand for fossil fuels in energy generation is thus a key driver for drilling chemicals market.

Strides made in the strategic production of shale oil and gas in some parts of the world are propelling the expansion of avenues in the drilling chemicals market. Several specialty chemicals in shale gas extraction have steadily been used in various hydraulic fracturing methods.

The COVID-19 outbreak impacted the drilling chemicals market negatively. The market witnessed a sharp decline in demand for drilling chemicals from various industries. Due to the lockdown and shutdown of production factories, the COVID-19 pandemic had a negative impact on market demand. The oil & gas sector has been severely affected due to the COVID-19 outbreak as it resulted in lockdown, which impacted numerous end-use industries owing to disruptions in vendor operations and supply chain. The production facilities have faced major disruptions. Closures of borders and export bans have led to a fluctuation in raw material prices and supplies.

Figure 1. Global Drilling Chemicals Market Value Share (%), By Region, 2021

Drilling Chemicals  | Coherent Market Insights

Market Restraints

Impact of drilling chemicals on the environment

Drilling operations require drilling fluids that contain additive chemicals injected through the drill string. These chemicals, when mixed with stone cuttings, from residues, which when discharge result in detrimental effects on the surrounding ecosystem. The contaminants from this residue get mixed with groundwater and make the groundwater toxic. This causes serious water and soil pollution and disturbs the natural habitat of various organisms. Biodegradable chemicals are costly thus resulting in limited adoption. Various governments around the world have imposed severe regulations on the usage and discharge of drilling fluids to control pollution.

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Drilling Chemicals Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 11974.03 Mn
Historical Data for: 2017-2020 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 5.67 % Forecast Period: 2022-2030
Geographies covered:
  • By Region: North America, Latin America, Asia Pacific, Europe, and Middle East & Africa
Segments covered:
  • By Chemicals: Dispersants & Deflocculants, Clean Up Chemicals, Shale Stabilizers, Drilling Mud Defoamers and Foaming Agents, Drilling Mud Lubricants, Drilling Mud Surfactants, Spotting Fluids, Fluid Loss Control Additives, Loss Circulation Material, Emulsifiers for Water-based and Oil-based Systems, Drilling Polymers, Weight Materials, Corrosion Inhibitor, Scavengers & Biocides, Viscosifiers, Adhesives & Sealants, and Commercial Chemicals
  • By Base Fluid Type: Oil-based Fluids (OBF), Water-based Fluids, Synthetic-Based Drilling Fluids, and Pneumatic Drilling Fluids
  • By Application: Onshore Drilling and Offshore Drilling
Companies covered:

Anchor Drilling Fluids Inc., MB Holding Company LLC, Tetra Technologies Inc., International Drilling Fluids and Engineering Services (Idec) Ltd., Canadian Energy Services Inc., Weatherford International Ltd., Global Fluids & Chemical Co., Baker Hughes, Newpark Drilling Fluids LLC., Diamoco Group, M-I SWACO, Schlumberger, Oren Hydrocarbons, and Halliburton. 

Growth Drivers:
  • Rising focus on exploration and production of oil & gas resources 
  • New Oil Reserves Discovery
  • Increasing Investment In Oil Exploration Activities
  • Increasing Shale Gas Activities In U.S.
Restraints & Challenges:
  • Environmental impact of drilling fluids
  • COVID-19 pandemic has also limited the adoption of drilling fluids

Market Trends

Chemicals with lower exposure toxicity, reduced flammability or flashpoint, greater biodegradability, lower bioaccumulation, and sustainability in both application and production are examples of green solutions in the chemicals fields.

Figure 2. Global Drilling Chemicals Market value Share (%), By Product Type, 2021

Drilling Chemicals  | Coherent Market Insights

Recent Developments

  • In February 2021, National Oilwell Varco (NOV) launched a falcon reamer for drilling operations in the Middle East & North Africa (MENA). NOV streamlined design of falcon reamer delivers high quality great operational efficiency and provides high-quality wellbores.
  • In March 2019, Newpark Resources Inc. introduced its new stimulation and completion fluid Kronos at the Offshore Technology Conference (OTC). Kronos is a synthetic-based invert emulsion system designed to comply with the environmental requirements for non-aqueous fluids for use in deepwater drilling applications. Kronos offers thermal stability and excellent environmental performance.
  • In December 2020, The Kraton Company, the world's biggest sustainable producer of specialty polymers, oilfield chemicals, and high-value pine wood pulping co-product biobased goods, extended its senior secured asset-based revolving credit facility.

Competitive Section

Major players operating in the global drilling chemicals market include Anchor Drilling Fluids Inc., MB Holding Company LLC, Tetra Technologies Inc., International Drilling Fluids and Engineering Services (Idec) Ltd., Canadian Energy Services Inc., Weatherford International Ltd., Global Fluids & Chemical Co., Baker Hughes, Newpark Drilling Fluids LLC., Diamoco Group, M-I SWACO, Schlumberger, Oren Hydrocarbons, and Halliburton. 

Drilling chemicals are also called drilling muds which are heavy, viscous fluid mixture that is used in oil and gas drilling operations to carry rock cuttings to the surface and also to lubricate and cool the drill bit. Drilling chemicals find application in simpler bore holes such as water wells and metal and mineral extraction. Depending on the application, drilling chemicals are classified into onshore and offshore chemicals. Therefore, increasing demand for drilling chemicals is expected to boost the drilling chemicals market growth over the forecast period.

Market Dynamics

Among applications, the onshore drilling segment is expected to witness a significant market share in the global drilling chemicals market. In 2021, the segment accounted for around 70.0% share of the global drilling chemicals market in terms of revenue. The onshore oil and natural gas industry continue to evolve, developing best practices and improving well designs. This evolution resulted in reduced drilling and completion times, lower total well costs, and increased well performance.

Asia Pacific is expected to emerge as one of the potential areas for investment by the end of 2030. This is owing to the significant growth of the oil and gas industry in India and China. According to India Brand Equity Foundation, the oil and natural gas industry in India is expected to attract US$ 25 billion investment in exploration and production projects by 2022.

Key features of the study:

  • This report provides in-depth analysis of drilling chemicals market and provides market size (US$ Million & KT) and Cumulative Annual Growth Rate (CAGR%) for the forecast period (2022 – 2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by key players
  • It profiles key players in the global drilling chemicals market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Anchor Drilling Fluids Inc., MB Holding Company LLC, Tetra Technologies Inc., International Drilling Fluids and Engineering Services (Idec) Ltd., Canadian Energy Services Inc., Weatherford International Ltd., Global Fluids & Chemical Co., Baker Hughes, Newpark Drilling Fluids LLC., Diamoco Group, M-I SWACO, Schlumberger, Oren Hydrocarbons, and Halliburton
  • Insights from this report would allow marketers and the management authorities of the companies to make an informed decision regarding their future products launches, technology up-gradation, market expansion, and marketing tactics
  • The global drilling chemicals market report caters to various stakeholders in this industry including investors, suppliers, drilling chemicals manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the drilling chemicals market

Detailed Segmentation:

  • Global Drilling Chemicals Market, By Chemicals:
    • Dispersants & Deflocculants
    • Clean Up Chemicals
    • Shale Stabilizers
    • Drilling Mud Defoamers and Foaming Agents
    • Drilling Mud Lubricants
    • Drilling Mud Surfactants
    • Spotting Fluids
    • Fluid Loss Control Additives
    • Loss Circulation Material
    • Emulsifiers for Water-based and Oil-based Systems
    • Drilling Polymers
    • Weight Materials
    • Corrosion Inhibitor
    • Scavengers & Biocides
    • Viscosifiers
    • Adhesives & Sealants
    • Commercial Chemicals
  • Global Drilling Chemicals Market, By Base Fluid Type:
    • Oil-based Fluids
    • Water-based Fluids
    • Synthetic-based Drilling Fluids
    • Pneumatic Drilling fluids
  • Global Drilling Chemicals Market, By Application:
    • Onshore Drilling
    • Offshore Drilling
  • Global Drilling Chemicals Market, By Region:
    • North America
      • U.S.
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Rest of South America
    • Europe
      • Germany
      • Italy
      • France
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Rest of Asia Pacific
    • Middle East & Africa
      • Middle East
      • Africa
  • Company Profiles
    • Anchor Drilling Fluids Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • MB Holding Company LLC
    • Tetra Technologies Inc.
    • International Drilling Fluids and Engineering Services (Idec) Ltd.
    • Canadian Energy Services Inc.
    • Weatherford International Ltd.
    • Global Fluids & Chemical Co.
    • Baker Hughes
    • Newpark Drilling Fluids LLC
    • Diamoco Group
    • M-I SWACO
    • Schlumberger
    • Oren Hydrocarbons
    • Halliburton

Frequently Asked Questions

Global drilling chemicals market was valued at around US$ 11974.03 Mn in 2021.
The market was valued at US$ 11974.03 Mn  in 2021 in terms of revenue, exhibiting a CAGR of 5.67 % during the forecast period (2022 to 2030).
The key market trend guiding the growth of the market includes the increasing environmental concerns associated with wastewater treatment.
Increasing demand for base metals, precious metals, oil, and natural gas is one of the major factors that is expected to propel the growth of the market over the forecast period
Major players operating in the market include Anchor Drilling Fluids Inc., MB Holding Company LLC, Tetra Technologies Inc., International Drilling Fluids and Engineering Services (Idec) Ltd., Canadian Energy Services Inc., Weatherford International Ltd., Global Fluids & Chemical Co., Baker Hughes, Newpark Drilling Fluids LLC., Diamoco Group, M-I SWACO, Schlumberger, Oren Hydrocarbons, and Halliburton.
Global drilling chemicals market is estimated to grow at around 5.67% CAGR in the forecast period (2022-2030).

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