The Worldwide drilling fluids market size was valued at USD 7.60 billion in 2016. Growing crude oil & natural gas demand in various energy-intensive industries such as power generation, manufacturing, and transportation has urged the exploration & production companies to increase their investments in onshore and offshore drilling activities.
Increasing participation to sustain the energy demand mainly from North America and Europe coupled with growing number of deep water discoveries in Persian Gulf and Pacific regions is projected to drive drilling fluids market over the forecast period. Manufacturing companies are shifting their focus on developing new solutions based on nanotechnology to overcome technological and environmental challenges.
Growing concern towards environmental impact associated with disposal of waste drilling fluids has urged regulatory bodies in various regions of the UK, Norway, Australia, the U.S., Saudi Arabia, and Canada to issue stringent regulations regarding disposal and treatment of waste drilling fluids.
OSPAR Commission has laid procedures regarding discharge of waste WBF and OBF in the UK and Norway. Atmospheric Administration, National Oceanic and Canadian Association of Petroleum Producers have issued strict guidelines for disposal of waste drilling fluids in North America.
In addition, companies have been extensively involved in R&D to develop bio-based drilling fluids derived from vegetable oils. Increasing environmental concerns owing to harmful effects associated with using oil-based fluids are leading to growing adoption of water-based drilling fluids. Growing environmental, health and safety concerns regarding mud discharge and disposal of cuttings are expected to hamper the market growth over the forecast period.
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Product Insights
Water-based mud (WBF) led the global demand and the market for the same was valued at USD 3.8 billion in 2016. Water-based fluids are estimated to possess high penetration and growth rate on account of cost-effectiveness and lower environmental impacts of the discharged cuttings and mud. The rising focus on improving the inhibitive and thermal performance of water-based systems in order to compete with non-aqueous fluids used in challenging and drilling environment is anticipated to raise demand over the next seven years.
Synthetic muds are anticipated to grow at a CAGR exceeding 3.5% from 2017 to 2025, on account of their ability to provide excellent thermal stability, borehole control, penetration rates and lubricity which are beneficial in reducing overall costs. Oil-based fluids segment is anticipated to witness stagnant growth over the forecast period owing to adverse environmental impact associated with waste discharge.
