May 22, 2024
Drilling Chemicals Market

Drilling Chemicals Market is Estimated to Witness High Growth Owing to Increasing Demand for Oil and Gas Exploration

The drilling chemicals market involves the use of chemical additives that are added to drilling muds, cement slurries, and completion and workover fluids used in drilling, cementing and completion processes of oil and gas wells. Drilling chemicals provide essential properties to drilling fluids like viscosity control, shale inhibition, oil and corrosion inhibition, pH control and others. They improve drilling performance, help in maintaining borehole stability and protect the drilling equipment from corrosion and other damages. The growing oil and gas production activities worldwide due to rising energy demand is expected to drive the drilling chemicals market during the forecast period.

The Global drilling chemicals market is estimated to be valued at US$ 15,402.68 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Drilling Chemicals Market are Cerner Corporation, Elekta, Accuray, RaySearch Laboratories, Flatiron Health, Koninklijke Philips N.V., McKesson Corporation, Epic Systems Corporation, CureMD Healthcare, Varian Medical Systems, Inc. Key players are focusing on expanding their product portfolio and global footprint through mergers & acquisitions to strengthen their market position.

The drilling chemicals market provides plenty of opportunities for players as oil and gas exploration and production activities are increasing globally. There is a lot of potential for growth in unconventional oil and gas exploration which requires intensive drilling activities. Furthermore, increasing exploration of deepwater and ultra-deepwater reserves will require advanced drilling fluids and chemicals.

North America and Middle East are expected to remain the key regions for drilling chemicals market. However, Latin America and Asia Pacific are also expected to witness high growth owing to increasing oil and gas E&P activities. Major players are expanding their presence in high growth markets through partnerships and new production plants.

Market drivers

The major driver for Drilling Chemicals Market Growth  is the rising demand for oil and gas globally. According to projections, the energy demand is expected to rise by over 25% by 2040. This will require a substantial increase in exploration and production activities which will boost demand for drilling chemicals. The increasing focus on unconventional resources like shale oil and gas along with deepwater and ultra-deepwater reserves will further drive the market during the forecast period.

PEST Analysis

Political: The drilling chemicals market is influenced by government regulations related to safety and environment protection from chemicals. Changes in political leadership can impact regulations affecting chemical approvals and usage.

Economic: Economic growth drives more drilling projects in exploration and production of oil & gas. Higher crude oil prices and demand for energy fuels more exploration and thus positively impacts the drilling chemicals market.

Social: Rising awareness about environmental protection and need to reduce pollution has led to demand for safer and eco-friendly drilling chemicals.

Technological: Advancements in drilling techniques and well completion methods require customized chemical formulations. Development of nano-technology based solutions is supporting improved productivity from wells drilled.

Geographical regions where market in terms of value is concentrated:

North America region accounts for the largest market share currently due to extensive onshore and offshore drilling activities in the United States and Canada. Presence of key shale reservoirs and ongoing production from mature oilfields supports ongoing demand for drilling chemicals from this region.

Fastest growing region for the market:

Asia Pacific region is expected to grow at the fastest pace during the forecast period driven by rising crude oil consumption and new exploration projects coming up in countries like China, India and Indonesia. Growing investments towards developing unconventional hydrocarbon reserves and expansion of refining capacities will aid market growth in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it