The global drilling fluids and chemicals market is anticipated to reach USD 15.66 billion by 2026 according to a new study published by Polaris Market Research.
The slow increase in oil prices in the past two years and expected boom post 2020 is expected to bring about increases in demand for drilling fluids and chemicals that are used in well drilling & completion, hydraulic fracturing and EOR operations. This slump and rebound in drilling fluids and chemicals demand is primarily owing to the volatility in crude prices. After reaching all time high in 2013, the prices slumped down tremendously within a significant short period. This resulted in dramatic decline of drilling operations all throughout the globe dripping almost as below as only 900 rigs globally (all time low) which eventually impacted the drilling fluids and chemicals market as well.
Development of several chemical formulations that can address environmental concerns will have an important impact on its market, promoting to added demand for high quality environmentally friendly chemicals, including less toxic biocides and biodegradable shale inhibitors. Offshore operations are anticipated to stay vital contributor for the market globally and the necessity for environmentally compatible chemicals and fluids will be leading in the offshore environments. Increasing concerns for pollution of groundwater and the environment are some of the major concerns for the industry participants. Companies have been investing significantly in R&D operations to constantly upgrade their products and offer novel chemicals to the upstream sector that satisfy every aspect of environmental regulations thus enhancing the required parameters of operations.
However in the short term, these products are anticipated to experience moderate growth in terms of market value before rallying on the later by the end of forecast period. In spite of relatively low demand for these products in the present scenario, the entire level of activities of oilfields and consequently demand for these products is projected to recover at a faster pace starting by the end of 2020. Number of well completion counts is anticipated to increase during the forecast period that will boost demand for completion chemicals. Simulation techniques including acidizing and hydraulic fracturing will increase as well fracturing have been increasing or else subject to other methods of simulation ahead of initial completion.
North America, especially in the U.S. is anticipated to experience healthy growth the next few years overcoming the price declines. The increase in unconventional drilling in the U.S. is the primary development in the global oil industry, successful of altering balance of demand and supply at the global scale and eventually contributing to the collapse and control over oil prices in the recent past. Hydraulic fracturing is anticipated to be one of the major application segments globally. Despite the low crude prices, increase in average volume of chemicals used per well during 2017 was a primary factor driving the market.
Some of the leading industry participants currently operating in the industry include Clariant, Solvay, NALCO, Croda International Plc, Baker Hughes, Kemira, Halliburton, Schlumberger Limited, Stepan Company, Akzo Nobel N.V., The Lubrizol Corporation, BASF SE and Dow Chemical Company.
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