Drilling Fluids Market Forecasts from 2023 to 2028

The global drilling fluids market is estimated to grow at a CAGR of 4.89%, reaching US$12.147 billion in 2028 from US$8.696 billion in 2021.

The expansion is attributed due to the growing demand in the major end-users of oil & gas such as transportation and power plants which is propelling the global oil & gas drilling activities in major countries. Moreover, new possibilities for the drilling fluids market are anticipated to arise due to the growing worries about handling solid wastes, spill containment, and collapsing boreholes during the forecast period. Over the forecast period, the drilling fluid market is anticipated to have tremendous expansion due to the expanding offshore industry, particularly in the Persian Gulf.

Increasing Energy Consumption

The increase in population and industrialization activity has resulted in increased daily energy usage. It has been determined that around 84% of the world's energy comes from fossil fuels as per the Environmental and Energy Study Institute. As a result, there has been a rise in the extraction of oil, gas, and other fossil fuels. Drilling fluid use is on the rise globally due to increased expenditure in offshore oil and gas exploration and production. Further, according to the IEA 2021 study, by 2040, there will be a 31% increase in global demand for natural gas, which will account for 17% of all energy consumed globally. By 2040, crude oil would likely see an increase in demand of 21%, accounting for 35% of all energy use.

Increasing Investment

The market is experiencing a lot of changes due to rising investments by the government and key market players. For instance, Exxon Mobil Corporation announced plans to invest USD 20 billion by 2022 in expanding its oil refinery on the U.S. Gulf Coast, which might help meet the region's future need for drilling fluids. In addition, measures to develop the oil and gas industry in developing nations are anticipated to promote the expansion of the drilling fluids market. Additionally, the Indian government has approved 100% foreign direct investment in upstream and private refining plants. Furthermore, it is predicted that a great demand for drilling will be created during the estimated period by hurried investments in oil and gas exploration activities in Mexico, drilling, and production accomplishments.

North America is Expected to Grow Considerably

The United States is expected to hold a substantial share of the market owing to its robust drilling activities which is the major factor contributing to the increasing demand during the forecast period. According to the US Energy Information Administration report, new-well production per rig by region was 949 barrels/day in July 2023 which upsurged to 963 barrels/day in August 2023. With the growth in this production, the utilization of drilling fluids is also increasing which is anticipated to fuel the market. West Texas and Southeast New Mexico have been included in the basin. The Permian Basin spans West Texas and Southeast New Mexico, being about 250 miles broad and 300 miles long. The Delaware Basin and Midland Basin are only two of the basin's many sub-basins.

Key Market Developments

• A 1, 600-meter-deep geothermal drilling project was finished by ENGIE Solutions, Schlumberger, and SMP Drillingin March 2021, in Vélizy-Villacoublay, France. The PowerDrive Archer high build rate rotating steerable equipment and AxeBlade ridged diamond element bit were used to drill the multilateral well.
• In April 2023, ADNOC Offshore awarded ADNOC Drilling a $412 million, five-year contract to provide Integrated Drilling Services (IDS) beginning in the second quarter of 2023.
• In July 2023, The Environmental Protection Agency (EPA) of Guyana approved the U.S.-based oil giant ExxonMobil's 35-well exploration and appraisal drilling operation on the Stabroek Block offshore Guyana. To support prospective future development projects, this allows the oil company to find fresh and reassess existing recoverable hydrocarbons from reservoirs in the block.

Segmentation:

By Fluid Type

• Water-Based
• Oil-Based
• Synthetic-Based
• Other fluid types

By Application

• Onshore
• Offshore

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• Spain
• United Kingdom
• Italy
• France
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others