The global drilling fluids market size is projected to reach USD 11.1 billion by 2027, according to a new report by Grand View Research, Inc. The market is projected to witness a moderate CAGR of 4.2% over the forecast period. Revival of new exploration and production projects on account of recovery in oil prices over the next few years is expected to drive the market growth over the forecast period.
Ongoing demand for advanced and better formulations for horizontal and directional drilling is expected to provide opportunity to market players. Moreover, the rise in demand for oil and gas has resulted in oil exploration companies exploring unconventional methods of oil extraction.
However, some European countries have established stringent norms for drilling fluids. This is because some drilling fluids, for instance, oil-based fluids, when discharged in water, can form piles of mud and cuttings that cover parts of the seabed which hinders aquatic life. These factors are expected to hinder the growth of the market over the forecast period.
Governments in various countries around the world such as U.S., Indonesia, China, and Australia are taking favorable initiatives to explore untapped oil resources. For instance, the Indonesian government provides favorable trade policies such as 0% import duty on imports of floating or submarine production facilities and drilling platforms, thereby driving the demand for unconventional drilling techniques. Moreover, reduced taxes are applicable over Foreign-owned Drilling Companies (FDCs) carrying out drilling activities in Indonesia, which is another factor driving the demand for drilling fluids.
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Further key findings from the report suggest:
Onshore emerged as the leading application segment of the overall market in 2019 owing to the presence of a large number of onshore oil rigs as compared to offshore oil rigs
In 2019, North America dominated the global market due to the presence of favorable initiatives taken by the governments in U.S. and Canada for the exploration of oil and gas
Asia Pacific is expected to register the highest growth rate over the forecast period owing to a rise in oil exploration and production activities in countries such as China, Australia, Brunei, and Indonesia
The water-based fluids segment dominated the market in 2019 owing to factors such as increase in environmental concerns and cost-effectiveness of these fluids
Synthetic-based fluids is expected to register a significant growth rate over the forecast period owing to its low toxicity, low bioaccumulation potential, and lower fluid loss when compared to other variants
Major players in the drilling fluids market include Schlumberger, Baker Hughes, Halliburton, Weatherford International, and National Oilwell Varco. Market players focus on R&D activities and enhancing their product portfolio.
Grand View Research has segmented the global drilling fluids market on the basis of product, application, and region:
Drilling Fluids Product Outlook (Revenue, USD Million, 2016 - 2027)
Oil-based fluids (OBF)
Water-based fluids (WBF)
Synthetic-based fluids (SBF)
Drilling Fluids Application Outlook (Revenue, USD Million, 2016 - 2027)
Drilling Fluids Regional Outlook (Revenue, USD Million, 2016 - 2027)
Central & South America
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