LONDON, April 21, 2016 /PRNewswire/ -- Oilfield drilling fluids are used in a very extensive manner in the oil and field industry and have proven to be a very crucial part of the oil drilling process. Drilling fluids are a key requirement in the vast majority of drilling operations. The main functions performed by drilling fluids are to: provide a barrier for well control; remove cuttings from the well bore as they are produced; maintain drill cuttings in suspension when drilling circulation is stopped; transmit hydraulic power to the drilling bit; maintain formation stability; maintain pressure on the formation; control fluid loss through filtration; cool and lubricate the drill bit and string; and facilitate data logging—drilling fluids characteristics need to be controlled so that logging instruments can accurately provide information about the well and formations being drilled.
The market is segmented in to various types, fluid formation along with detailed geographic analysis. The global oilfield drilling fluids market was $xx million for the year 2014 and is forecast to reach $ xx million by 2020 exhibiting a CAGR of xx. The market volume of oilfield drilling fluids is estimated to be xx KT by 2020 and poised to exhibit a CAGR of xx % through the period 2014 and 2020.
Amidst the continuation of plunging oil prices, there is a favourable cognizance of improvement in the demand for oil. According to the monthly oil market report June 2015 of OPEC, the global oil demand is seen growing for the year 2015. The demand for oil in 2015 is forecast to grow by xx mb/day (million barrels per day), as compared to xx mb/day in 2014. On the whole an increase in oil demand would in turn induce the growth of biocides market.
On the contrary, the supply of oil has not come down and is projected to grow by xx mb/day, according to OPEC. This in return has created a supply over demand ratio, which has induced the ceasing of many new oil wells. The U.S. which is one of the major markets for shale gas fracking has recently undergone the shutdown of approximately 200 new wells in a period of one year from 2014 to 2015. This has apparently, resulted in a humungous dip in the usage of drilling fluids, as they find their major application in oil field wells. But according to OPEC and other OECD countries this trend will not continue for long and the prices are forecast to recover soon, which consequently, would enhance the production of oil. On the whole, an increase in oil demand would in turn induce the growth of drilling fluid additives market.
Fluid viscosifiers hold the largest market share both in terms of volume and revenue, accounting $ xx million revenue and xx KT in terms of volume. As shown in the above figure, in terms of number of products, fluid viscosifiers had dominated the market with a share of xx %, followed by corrosion inhibitors which accounted for xx % share. BASF, Dow Chemicals, Akzo Nobel and Chevron are some of the major suppliers of fluid viscosifiers. The number of fluid viscosifiers products manufactured is more in number and at the same time the market share in terms of revenue also the highest when compared to others, with a market share of xx %, which is followed by defoamers. The main reason attributed to the highest share of fluid viscosifiers is their price, which is far less than its peers. Easy accessibility and lower price makes it the product with highest usage.
Growth in the industry is not uniform across the regions as; developed regions like Europe and North America are estimated to exhibit sluggish growth compared to other parts of the world. On the contrary, APAC and the Middle East are poised to exhibit faster growth due to the favourable macroeconomic factors and strong demand for oil. China, Saudi Arabia, UAE and Russia are the growth frontiers for the oilfield drilling fluid additives manufacturers, providing a huge market to be tapped. Saudi Arabia is estimated to grow at a CAGR of xx % during the forecast period between 2015 and 2020. China's vast demand for energy will continue to drive the country's exploration and development of its significant unconventional resource potential, with a particular emphasis on natural gas, and hence increasing the additives market.
The oilfield drilling fluid additives market is highly competitive due to the dominance of regional players.
The key players in the market are
Chevron Philips Chemical Company,
The Dow Chemical Company (constitutes a major share)
These companies are adopting various growth strategies such as new product launches, expansions, partnerships and acquisitions to consolidate their market share. The companies are investing in R&D extensively to develop technically advanced unique products to differentiate from competitors and increase their market share.
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