Global drilling fluids and chemicals market size would surpass an overall valuation of UD$15.66 billion by 2026, according to the latest research available at Market Study Report LLC, report provides detailed segmentation of the biotechnology market based on type, application, end user and region.
According to the report, the gradual rise in oil prices over the past two years along with the expected boom after 2020 is slated to fuel demand for drilling fluids and chemicals that are utilized in hydraulic fracturing, well drilling & completion as well as EOR operations.
The fluctuations in drilling fluids and chemicals demand have been attributed to the volatile nature of crude prices. In 2013, after hitting an all-time-high, the prices plummeted tremendously within a short time span, resulting in a significant decline of drilling operations across the world. During this time, drilling activities fell as low as 900 rigs worldwide, the lowest of all time, which severely impacted the drilling fluids and chemicals market growth.
Ongoing development of a plethora of chemical formulations, which could effectively address environmental concerns, is projected to make a favorable impact on market growth, further influencers include increasing demand for high quality and eco-friendly chemicals, including less toxic biodegradable shale inhibitors and biocides.
The report cites that offshore operations are projected to stay the key growth contributors for the market across the world. Moreover, owing to their increasing necessity, environmentally friendly fluids and chemicals would be taking a leading stance in offshore environments.
Growing concerns regarding groundwater and environmental pollution would emerge as major worry points for industry participants. Companies have been making substantial investments in research and development activities to continually upgrade their product portfolios and offer chemicals and fluids that meet every aspect of environmental regulations, thereby improving required parameters of operations.
However, over the short term, these solutions are slated to experience moderate growth, particularly in terms of market value before they pick up momentum by the end of the forecast timeframe. Despite relatively low demand for such products in the industry at present, the revival of oilfield activities and these products, by extension, is expected to recover at a significantly rapid pace by the end of 2020.
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The overall number of well completions is slated to grow over the forthcoming years, which would boost demand for completion chemicals. Additionally, simulation techniques, including hydraulic fracturing and acidizing are projected to increase.
From a regional perspective, North America, particularly the U.S. is projected to witness a healthy rate of growth over the forthcoming years by overcoming price declines. A boost in unconventional drilling across the country is a prominent development within the global oil industry. This development has been successful in altering balance of supply and demand on a global scale, eventually contributing to the downfall and control over crude oil prices over the past years, cites the study.
Hydraulic fracturing is slated to be a prominent application segment driving industry growth globally. In 2017, in spite of low crude prices, rise in the average volume of fluids, and chemicals utilized per well was a prominent factor driving industry growth.
Some leading market participants presently operating within the industry include Solvay, Clariant, Croda International Plc, NALCO, Kemira, Baker Hughes, Schlumberger Limited, Halliburton, Akzo Nobel N.V., Stepan Company, BASF SE, The Lubrizol Corporation, and Dow Chemical Company.