The drilling fluids market size has grown strongly in recent years. It will grow from $10.08 billion in 2024 to $10.71 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growing exploration and production activities, regulatory compliance and environmental concerns, rise in offshore drilling activities, demand for high-performance fluids, exploration in challenging geographies.
The drilling fluids market size is expected to see strong growth in the next few years. It will grow to $13.47 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to increasing global energy demand, rising focus on enhanced oil recovery (EOR), expansion of geothermal energy projects, development of high-temperature fluids, demand for water-based drilling fluids, global oil price dynamics. Major trends in the forecast period include advanced fluid systems for unconventional resource, technological advancements in fluid additives, rise in deepwater and ultra-deepwater exploration, reservoir drill-in fluids for well completion, increasing use of synthetic-based fluids, emphasis on real-time monitoring and control.
The drilling fluids market is witnessing significant growth, propelled by the increased demand for oil. As a crucial component in petroleum production, oil extraction necessitates drilling fluids for diverse purposes, including cooling and lubrication of the drill. The surge in oil demand has prompted heightened oil extraction activities by companies, consequently boosting the drilling fluids market. According to the International Energy Agency (IEA), global oil demand is projected to rise from 9 mb/d (million barrels per day) in 2019 to 104.1 mb/d, marking a substantial increase of 4.4 mb/d in the foreseeable future. This growth trajectory is further supported by projections from The Organization of the Petroleum Exporting Countries (OPEC), estimating a 1.6 mb/d increase in oil demand in 2022, with concurrent non-OECD growth expected at 1.5 mb/d. Thus, the escalating demand for oil serves as a pivotal driver for the drilling fluids market.
The drilling fluids market is set for expansion, driven by the increasing demand for shale gas. Shale gas, a natural gas reservoir within shale rock formations, necessitates specialized drilling fluids to optimize extraction processes. The surge in shale exploration and production activities contributes to the growing need for tailored drilling fluid solutions, fostering continuous innovation in drilling fluid technologies. According to the Energy Information Administration, U.S. dry natural gas production witnessed a substantial increase of approximately 1.29 trillion cubic feet in 2022 compared to the previous year. This surge in shale gas demand substantiates the pivotal role of drilling fluids in optimizing efficiency and meeting environmental standards, thereby propelling the growth of the drilling fluids market.
Product innovation is a significant trend in the drilling fluids market. Leading companies in this sector are creating new products, such as the DELTA-TEQ low-impact drilling fluid, which is a non-aqueous formulation designed for enhanced hole cleaning in deviated boreholes, utilizing advanced technologies. For example, in April 2022, Ingevity Corporation, a US-based firm in the drilling fluids industry, launched the EnvaWet UHS 3100 wetting agent along with its innovative EnvaDry P-FL dual-functional dry additive for invert emulsion drilling fluids. This combination offers exceptional performance and sustainability, helping to maintain consistent rheology in fluids with a very high solid content, improving emulsion stability, prolonging the life of the drilling mud, and reducing customer expenditures on time, money, and equipment.
Leading companies in the drilling fluids market are forming strategic partnerships to broaden their capabilities. Strategic partnerships involve companies leveraging each other’s strengths and resources for mutual benefit and success. For instance, in June 2023, Vår Energi, a Norwegian oil and gas company, partnered with Halliburton, a Texas-based provider of drilling fluids and solutions for the oil and gas sector, to enhance value creation and improve well performance and drilling efficiency. This collaboration includes drilling services for Vår Energi's production and development drilling across the entire Norwegian Continental Shelf (NCS).
In June 2022, Paragon ISG, a US-based company that offers a variety of energy and environmental solutions, acquired Spirit Drilling Fluids for an undisclosed sum. This acquisition is intended to enhance Paragon ISG's capabilities in drilling fluids, solids management, and environmental services throughout the United States, positioning the company for growth in the competitive energy market. Spirit Drilling Fluids, also based in the US, specializes in providing drilling fluids and related services, with a focus on solutions tailored to the oil and gas industry, particularly in drilling operations.
Major companies operating in the drilling fluids market are Baker Hughes Holdings LLC, Halliburton Company, Weatherford International PLC, Schlumberger Limited, Newpark Resources Inc., Anchor Drilling Fluids USA Inc., TETRA Technologies Inc., Petrochem Performance Chemicals LLC, International Drilling Fluids and Engineering Services Ltd., National Oilwell Varco Inc., Scomi Group Bhd, Stellar Drilling Fluids LLC, Gumpro Drilling Fluids Pvt. Ltd., Global Drilling Fluids & Chemicals Limited, DIAMOCO Group, Q'Max Solutions Inc., Badische Anilin und Soda Fabrik SE, Chevron Phillips Chemical Company LLC, The Dow Chemical Company, Canadian Energy Services & Technology Corp., Secure Energy Services Inc., Sinopec, Horizon Mud Company Inc., Medserv PLC, IMDEX LIMITED, AES Drilling Fluids LLC, Francis Drilling Fluids Ltd., Avril Group, Unique Drilling Fluids Inc., Sunwest Fluids LLC, McAda Drilling Fluids, Geo Drilling Fluids Inc.
North America was the largest region in the drilling fluids market in 2024 and is expected to be the fastest-growing region in the drilling fluid market report during the forecast period. The regions covered in the drilling fluids market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the drilling fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Drilling fluids, commonly referred to as drilling mud, are dense, viscous mixtures utilized in oil and gas drilling to transport rock cuttings to the surface, lubricate and cool the drill bit, and ensure wellbore stability by applying hydrostatic pressure. These fluids can be classified as water-based, oil-based, or synthetic-based, with each type formulated with particular additives tailored for different drilling conditions.
The primary categories of drilling fluids include oil-based, synthetic-based, water-based, and other products. Oil-based drilling fluids are composed of oil as the continuous phase and water as the dispersed phase, often combined with emulsifiers, wetting agents, and gallants. These fluids find applications in both onshore and offshore drilling activities and are used by various end-users, including crude petroleum companies and natural gas extraction companies.
The drilling fluids market research report is one of a series of new reports that provides drilling fluids market statistics, including drilling fluids industry global market size, regional shares, competitors with a drilling fluids market share, detailed drilling fluids market segments, market trends and opportunities, and any further data you may need to thrive in the drilling fluids industry. This drilling fluids market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The drilling fluids market consists of sales of non-aqueous fluid, reservoir drilling fluid, and air drilling fluids, such as foams, mists, and stiff foams. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The drilling fluids market size is expected to see strong growth in the next few years. It will grow to $13.47 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to increasing global energy demand, rising focus on enhanced oil recovery (EOR), expansion of geothermal energy projects, development of high-temperature fluids, demand for water-based drilling fluids, global oil price dynamics. Major trends in the forecast period include advanced fluid systems for unconventional resource, technological advancements in fluid additives, rise in deepwater and ultra-deepwater exploration, reservoir drill-in fluids for well completion, increasing use of synthetic-based fluids, emphasis on real-time monitoring and control.
The drilling fluids market is witnessing significant growth, propelled by the increased demand for oil. As a crucial component in petroleum production, oil extraction necessitates drilling fluids for diverse purposes, including cooling and lubrication of the drill. The surge in oil demand has prompted heightened oil extraction activities by companies, consequently boosting the drilling fluids market. According to the International Energy Agency (IEA), global oil demand is projected to rise from 9 mb/d (million barrels per day) in 2019 to 104.1 mb/d, marking a substantial increase of 4.4 mb/d in the foreseeable future. This growth trajectory is further supported by projections from The Organization of the Petroleum Exporting Countries (OPEC), estimating a 1.6 mb/d increase in oil demand in 2022, with concurrent non-OECD growth expected at 1.5 mb/d. Thus, the escalating demand for oil serves as a pivotal driver for the drilling fluids market.
The drilling fluids market is set for expansion, driven by the increasing demand for shale gas. Shale gas, a natural gas reservoir within shale rock formations, necessitates specialized drilling fluids to optimize extraction processes. The surge in shale exploration and production activities contributes to the growing need for tailored drilling fluid solutions, fostering continuous innovation in drilling fluid technologies. According to the Energy Information Administration, U.S. dry natural gas production witnessed a substantial increase of approximately 1.29 trillion cubic feet in 2022 compared to the previous year. This surge in shale gas demand substantiates the pivotal role of drilling fluids in optimizing efficiency and meeting environmental standards, thereby propelling the growth of the drilling fluids market.
Product innovation is a significant trend in the drilling fluids market. Leading companies in this sector are creating new products, such as the DELTA-TEQ low-impact drilling fluid, which is a non-aqueous formulation designed for enhanced hole cleaning in deviated boreholes, utilizing advanced technologies. For example, in April 2022, Ingevity Corporation, a US-based firm in the drilling fluids industry, launched the EnvaWet UHS 3100 wetting agent along with its innovative EnvaDry P-FL dual-functional dry additive for invert emulsion drilling fluids. This combination offers exceptional performance and sustainability, helping to maintain consistent rheology in fluids with a very high solid content, improving emulsion stability, prolonging the life of the drilling mud, and reducing customer expenditures on time, money, and equipment.
Leading companies in the drilling fluids market are forming strategic partnerships to broaden their capabilities. Strategic partnerships involve companies leveraging each other’s strengths and resources for mutual benefit and success. For instance, in June 2023, Vår Energi, a Norwegian oil and gas company, partnered with Halliburton, a Texas-based provider of drilling fluids and solutions for the oil and gas sector, to enhance value creation and improve well performance and drilling efficiency. This collaboration includes drilling services for Vår Energi's production and development drilling across the entire Norwegian Continental Shelf (NCS).
In June 2022, Paragon ISG, a US-based company that offers a variety of energy and environmental solutions, acquired Spirit Drilling Fluids for an undisclosed sum. This acquisition is intended to enhance Paragon ISG's capabilities in drilling fluids, solids management, and environmental services throughout the United States, positioning the company for growth in the competitive energy market. Spirit Drilling Fluids, also based in the US, specializes in providing drilling fluids and related services, with a focus on solutions tailored to the oil and gas industry, particularly in drilling operations.
Major companies operating in the drilling fluids market are Baker Hughes Holdings LLC, Halliburton Company, Weatherford International PLC, Schlumberger Limited, Newpark Resources Inc., Anchor Drilling Fluids USA Inc., TETRA Technologies Inc., Petrochem Performance Chemicals LLC, International Drilling Fluids and Engineering Services Ltd., National Oilwell Varco Inc., Scomi Group Bhd, Stellar Drilling Fluids LLC, Gumpro Drilling Fluids Pvt. Ltd., Global Drilling Fluids & Chemicals Limited, DIAMOCO Group, Q'Max Solutions Inc., Badische Anilin und Soda Fabrik SE, Chevron Phillips Chemical Company LLC, The Dow Chemical Company, Canadian Energy Services & Technology Corp., Secure Energy Services Inc., Sinopec, Horizon Mud Company Inc., Medserv PLC, IMDEX LIMITED, AES Drilling Fluids LLC, Francis Drilling Fluids Ltd., Avril Group, Unique Drilling Fluids Inc., Sunwest Fluids LLC, McAda Drilling Fluids, Geo Drilling Fluids Inc.
North America was the largest region in the drilling fluids market in 2024 and is expected to be the fastest-growing region in the drilling fluid market report during the forecast period. The regions covered in the drilling fluids market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the drilling fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Drilling fluids, commonly referred to as drilling mud, are dense, viscous mixtures utilized in oil and gas drilling to transport rock cuttings to the surface, lubricate and cool the drill bit, and ensure wellbore stability by applying hydrostatic pressure. These fluids can be classified as water-based, oil-based, or synthetic-based, with each type formulated with particular additives tailored for different drilling conditions.
The primary categories of drilling fluids include oil-based, synthetic-based, water-based, and other products. Oil-based drilling fluids are composed of oil as the continuous phase and water as the dispersed phase, often combined with emulsifiers, wetting agents, and gallants. These fluids find applications in both onshore and offshore drilling activities and are used by various end-users, including crude petroleum companies and natural gas extraction companies.
The drilling fluids market research report is one of a series of new reports that provides drilling fluids market statistics, including drilling fluids industry global market size, regional shares, competitors with a drilling fluids market share, detailed drilling fluids market segments, market trends and opportunities, and any further data you may need to thrive in the drilling fluids industry. This drilling fluids market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The drilling fluids market consists of sales of non-aqueous fluid, reservoir drilling fluid, and air drilling fluids, such as foams, mists, and stiff foams. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Drilling Fluids Market Characteristics3. Drilling Fluids Market Trends and Strategies4. Drilling Fluids Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Drilling Fluids Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Drilling Fluids Market34. Recent Developments in the Drilling Fluids Market
5. Global Drilling Fluids Growth Analysis and Strategic Analysis Framework
6. Drilling Fluids Market Segmentation
7. Drilling Fluids Market Regional and Country Analysis
8. Asia-Pacific Drilling Fluids Market
9. China Drilling Fluids Market
10. India Drilling Fluids Market
11. Japan Drilling Fluids Market
12. Australia Drilling Fluids Market
13. Indonesia Drilling Fluids Market
14. South Korea Drilling Fluids Market
15. Western Europe Drilling Fluids Market
16. UK Drilling Fluids Market
17. Germany Drilling Fluids Market
18. France Drilling Fluids Market
19. Italy Drilling Fluids Market
20. Spain Drilling Fluids Market
21. Eastern Europe Drilling Fluids Market
22. Russia Drilling Fluids Market
23. North America Drilling Fluids Market
24. USA Drilling Fluids Market
25. Canada Drilling Fluids Market
26. South America Drilling Fluids Market
27. Brazil Drilling Fluids Market
28. Middle East Drilling Fluids Market
29. Africa Drilling Fluids Market
30. Drilling Fluids Market Competitive Landscape and Company Profiles
31. Drilling Fluids Market Other Major and Innovative Companies
35. Drilling Fluids Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Drilling Fluids Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on drilling fluids market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for drilling fluids? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The drilling fluids market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Product: Oil-Based; Synthetic-Based; Water-Based; Other products2) by Application: Onshore; Offshore
3) by End-User: Crude Petroleum Companies; Natural Gas Extraction Companies
Subsegments:
1) by Oil-Based: Mineral Oil-Based Fluids; Ester-Based Fluids2) by Synthetic-Based: Synthetic Oil-Based Fluids; Biodegradable Synthetic Fluids
3) by Water-Based: Polymer-Based Fluids; Bentonite-Based Fluids; Saline-Based Fluids
4) by Other Products: Foam-Based Fluids; Emulsion-Based Fluids
Key Companies Mentioned: Baker Hughes Holdings LLC; Halliburton Company; Weatherford International PLC; Schlumberger Limited; Newpark Resources Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Drilling Fluids market report include:- Baker Hughes Holdings LLC
- Halliburton Company
- Weatherford International PLC
- Schlumberger Limited
- Newpark Resources Inc.
- Anchor Drilling Fluids USA Inc.
- TETRA Technologies Inc.
- Petrochem Performance Chemicals LLC
- International Drilling Fluids and Engineering Services Ltd.
- National Oilwell Varco Inc.
- Scomi Group Bhd
- Stellar Drilling Fluids LLC
- Gumpro Drilling Fluids Pvt. Ltd.
- Global Drilling Fluids & Chemicals Limited
- DIAMOCO Group
- Q'Max Solutions Inc.
- Badische Anilin und Soda Fabrik SE
- Chevron Phillips Chemical Company LLC
- The Dow Chemical Company
- Canadian Energy Services & Technology Corp.
- Secure Energy Services Inc.
- Sinopec
- Horizon Mud Company Inc.
- Medserv PLC
- IMDEX LIMITED
- AES Drilling Fluids LLC
- Francis Drilling Fluids Ltd.
- Avril Group
- Unique Drilling Fluids Inc.
- Sunwest Fluids LLC
- McAda Drilling Fluids
- Geo Drilling Fluids Inc.
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | February 2025 |
Forecast Period | 2025 - 2029 |
Estimated Market Value ( USD | $ 10.71 Billion |
Forecasted Market Value ( USD | $ 13.47 Billion |
Compound Annual Growth Rate | 5.9% |
Regions Covered | Global |
No. of Companies Mentioned | 33 |