The global clear brine fluids market was priced at USD 926.7 million in 2013. Countries including Egypt, Gulf of Mexico, the U.S., China, and Russia have experienced an increase in the drilling activities due to rising demand for energy. This is anticipated to increase the overall clear brine fluids demand. There has been a significant increase in the global count of the rig on account of these increased drilling activities, which has additionally boosted the market demand.
North America clear brine fluids market value by product, 2012 - 2020 (Kilo Tons)
There has been a considerable shift towards the expansion of unconventional resources of energy which include CBM, shale gas, and tight gas. This shift has been observed majorly in the U.S. and China and is forecasted to benefit their respective regional market. In 2012, Asia Pacific made more than 10% of the total investment for deep water drilling. Hence, the advent of Asia Pacific being a profitable region for deep water drilling is expected to positively impact the global clear brine fluids market.
The growing requirement for these fluids as a substitute to the conservative drilling fluids may further fuel the demand in the market. Moreover, there has been an increase in the investments made for exploring the deep water, predominantly in the golden triangle, which is predicted to profit the market over the forecast period. The golden triangle is the oil and gas reserve in deep water casing offshore West Africa, Brazil, and the U.S. Gulf of Mexico (USGOM).
However, the regulatory bodies including Environmental Protection Agency (EPA) have allotted inflexible regulations concerning the discarding of clear brine fluids. Growing consciousness regarding the contamination of ground water may further obstruct the growth of the overall clear brine fluids market over the forecast period.
Key industry players such as Great Lakes and Albemarle have increased their rates of clear brine fluids because of limited potassium chlorides supply. The discrepancy in agreements regarding the trade because of the civil crisis and political uncertainty is projected to negatively impact the exploration activities of oil and gas in North Africa and the Middle East. Aforementioned factors are anticipated to hinder the market growth over the next six years.
In 2013, potassium chloride segment witnessed the highest consumption, of over 20%, whereas potassium bromide generated the maximum revenue, accounting for more than 15% of the total revenue. An extensive variety of all the bromides and chlorides applications are estimated to benefit the worldwide market over the forecast period.
Potassium bromide and chloride fluids find application in examining wells in oil & gas industry. Additionally, potassium chloride is also estimated to be the most rapidly growing segment in the near future. The primary applications include deep water wells, high-pressure & deep oil wells and oil sands where drilling muds are at risk to block the constructions.
In 2013, North America clear brine fluids market accounted for more than 60% of the global demand. This huge consumption pattern can be attributed to the boom of shale gas in the U.S.
Asia Pacific demand is projected to grow at the highest pace, at an estimated CAGR of 11.0%, on account of the increasing drilling activities in oil and gas segments, predominantly in China. India also witnessed a flourishing oil and gas section along with rising exploration activities, which is expected to increase further the demand in the near future.
The global clear brine fluids market is moderately consolidated in nature. The four major companies accounted for more than 50% of the total market. The prominent players in the market include Halliburton, Great Lake Solutions, TETRA Technologies, M-I SWACO, Albemarle Corporation, and Israel Chemicals Ltd. Market players are taking initiatives such as M&As and product diversification to cope with the current backdrops of the market.
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