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
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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.
Drilling Chemicals Market Report Coverage
Report Coverage | Details | ||
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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: |
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Segments covered: |
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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. |
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Restraints & Challenges: |
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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
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Recent Developments
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.
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