Drilling Chemicals Market Is Expected To Reach US$ 17,266.8 Million by 2027 - Coherent Market Insights

The global drilling chemicals market was valued at US$ 10,829.0 million in 2018, according to Drilling Chemicals Market Report, 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), and by Region (North America, South America, Asia Pacific, Europe, and Middle East & Africa).

The global drilling chemicals market is projected to reach US$ 17,266.8 million by 2027, exhibiting a CAGR of 5.3% during the forecast period (2019-2027). Increasing demand for drilling chemicals in the construction and oil & gas industries is expected to boost growth of the drilling chemicals market over the forecast period. Increase in upstream activities of the oil & gas industry is expected to boost the production volume of crude oil. This in turn is propelling the drilling chemicals market growth. Demand for drilling chemicals is expected to increase in areas such as North Sea in Norway and Bakken field in the U.S.

According to the International Energy Agency, around 65,176 wells were drilled across the world in 2017. New approvals from several governments for drilling operations across the globe is also expected to propel demand for drilling chemicals in onshore and offshore operations. In February 2013, the United Kingdom Onshore Operators Group (UKOOG), the representative body for UK onshore oil and gas companies, published industry guidelines covering best practice for shale gas well operations in the UK. However, a glut in oil supply has resulted in fall of oil prices. In 2017, the oil price of Brent Crude was stabilized to US$ 50/bbl (U.S. liquid barrel), which does not allow for many oil producers to reach breakeven. Low oil prices have affected the oil revenue dependent nations in the Middle East and Africa. Moreover, with a dominance of state-owned oil corporations in Africa, the countries in the region lack the technology to achieve breakeven at low oil prices. This scenario is predicted to hinder the growth of the industry in next coming years.

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Browse 90 market data tables* and 70 figures* on "Drilling Chemicals Market” - Global forecast to 2027.

Key Takeaways of the Market:

• Based on application, the drilling chemicals market is segregated into onshore drilling and offshore drilling. Onshore drilling is considered as the largest application segment, which has a direct impact on the growth of the drilling chemicals market.
• Asia Pacific is expected to emerge as one of the potential areas for investment by the end of 2027, owing to increasing demand for drilling chemicals in countries such as China and India. According to data released by the Department of Industrial Policy and Promotion of India (DIPP), the petroleum and natural gas sector in India attracted FDI valued at US$ 6.8 billion between April 2000 and December 2016.
• According to the Government of India, the country imported 109.09 million tons of crude oil from 10 Middle East nations in the 2015-16 fiscal year, which was 59% of the total oil imports. The demand for crude oil is increasing significantly due to growing automobile and petrochemical industries in Asia Pacific. India is looking to diversify its oil imports and plans to cut its dependence on Middle East by increasing imports from Africa as announced by Ministry of Petroleum and Natural Gas, Government of India in April 2016.
• 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, Halliburton, and others.
• Key players in the market are undertaking various strategies in order to enhance their share in the global market. For instance, in 2017, Schlumberger established new production technology center of excellence and analysis laboratories in the Middle East to improve its product profile and solve challenges related to its oil & gas sector.