by Drilling chemicals are the specialized additives that are added to drilling mud, cement slurries, well completion and workover fluids to optimize the operational efficiency and improve wellbore stability during drilling operations. Some of the major functions of drilling chemicals include improving the performance properties of drilling fluid systems, minimizing friction between drill pipe and casing wall, controlling corrosion and formation damage. The global drilling fluids market is primarily driven by the rising exploration and production activities in the oil and gas industry to meet the ever-increasing energy demands worldwide. Recent discoveries of new unconventional hydrocarbon reserves have further boosted industry prospects. Drilling chemicals play a vital role in controlling formation pressures, improving drilling rates and efficiency.
The global Drilling Chemicals Market is estimated to be valued at US$ 13370.38 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the drilling chemicals market is the growing demand for bio-based and eco-friendly products. With increasing concerns regarding environmental footprint of drilling operations, chemical manufacturers are extensively focusing on developing biologically produced and sustainable drilling additives. These green chemicals are biodegradable, non-toxic and aid in minimizing operational risks. Moreover, they exhibit properties comparable to synthetic chemicals and prove cost-effective in the long run. Leading industry players have introduced various bio-drilling fluid systems incorporated with plant-derived polymers, esters and formulations that are advantageous in terms of protection, shale inhibition and wellbore stability. Driven by stringent regulations and sustainability goals of drillers, the demand for bio-drilling chemicals is expected to rise significantly over the coming years.
Porter’s Analysis
Threat of new entrants: The drilling chemicals market requires high capital investments and has stringent regulations, making it difficult for new players to enter the market.
Bargaining power of buyers: Oil and gas companies have considerable bargaining power as buyers due to the presence of many drilling chemicals suppliers.
Bargaging power of suppliers: A few large players dominate the supply of drilling chemicals globally, giving them strong bargaining power over oil and gas companies.
Threat of new substitutes: There are limited product substitutes for drilling chemicals as they play a crucial role in rotary drilling operations.
Competitive rivalry: The global drilling chemicals market is moderately competitive due to the presence of large multinational players.
Key Takeaways
The Global Drilling Chemicals Market Size is expected to witness high growth over the forecast period driven by increasing oil and gas exploration activities. The global Drilling Chemicals Market is estimated to be valued at US$ 13370.38 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030.
Regional analysis: The North America drilling chemicals market is projected to dominate the global market during the forecast period. Increasing shale gas exploration activities in the U.S. and Canada are driving the demand for drilling chemicals in the region. The Asia Pacific drilling chemicals market is expected to grow the fastest during the forecast period supported by rising oil and gas exploration in China, India and other Asian countries.
Key players: Key players operating in the drilling chemicals market are ADM, PT Darya-Varia Laboratoria Tbk, Citra Nusa Insan Cemerlang PT, Sido Muncul PT, The Tempo Group, Bayer AG, BASF SE, Pfizer Inc., Nature€TMs Sunshine Products, Inc., Amway, and Glanbia PLC.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
