June 14, 2024

The Drilling Chemicals Market Is Expected To Be Flourished By Increasing Demand From Offshore Drilling Activities

Drilling chemicals are specialty chemicals used in oil & gas exploration and drilling activities to enhance drilling efficiency and productivity. They include drilling muds, cementing chemicals, workover & completion chemicals, drill bits & cutting tools, and drilling fluids. Drilling muds are formulated mixtures of clays, chemicals, and other agents used to lubricate and cool the drill bit, carrying rock cuttings back to the surface. Cementing chemicals are used during well cementing process to provide zonal isolation and wellbore stability. Workover & completion chemicals improve productivity and maximize hydrocarbon recovery from wells.

The global Drilling Chemicals Market is estimated to be valued at Us$ 15402.68 Mn in 2024 and is expected to exhibit a CAGR Of 7.8% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of drilling chemicals market is the increasing demand from offshore drilling activities. Offshore drilling accounts for approximately 25-30% of global oil production. With onshore wells maturing, exploration and production companies are increasingly focusing on offshore reserves. However, offshore drilling poses unique technical challenges such as extreme pressure and temperature conditions. Drilling chemicals play a vital role in enabling efficient drilling in offshore environments. For example, drilling fluids from accurate wellbore stability control formulations help overcome issues such as lost circulation in offshore drilling. Cementing chemicals provide zonal isolation and well integrity even under harsh offshore conditions. Therefore, rising offshore exploration and production activities are expected to augment the demand for specialty drilling chemicals over the forecast period. Additionally, increasing complexity of wells due to shale development requiring longer horizontal laterals and multistage fracking is also boosting the need for drilling chemicals that provide wellbore stability and maximize hydrocarbon recovery.

Segment Analysis

The global drilling chemicals market is segmented into oilfield chemicals by function, water base fluid system, oil base fluid system and other fluid system. Oilfield chemicals by function is dominating segment of the market and is expected to grow at highest CAGR during the forecast period. This is because oilfield chemicals are widely used for a variety of functions including inhibition of corrosion, reduction of friction between drilling tools and walls of boreholes.

PEST Analysis

Political: The government policies supporting exploration and production activities are positively impacting the drilling chemicals market growth. However, stringent environmental regulations regarding offshore drilling may hamper the market.

Economic: Rise in oil rig activities and exploration of unconventional oil & gas reserves are fueling the demand for drilling chemicals. Shale gas boom in the US and revival of exploration activities post-pandemic are driving the market.

Social: Increasing energy demand due to rapid industrialization and growing population are major social factors propelling the drilling chemicals consumption. However, environmental concerns related to their usage pose challenges.

Technological: Continuous technological advancements are helping reduce drilling time and optimize use of drilling chemicals. Digital technologies are improving efficiency of drilling processes.

Key Takeaways

The Global Drilling Chemicals Market Demand is expected to witness high growth during the forecast period. The global drilling chemicals market is estimated to be valued at US$ 15402.68 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.

Regional analysis :

 

North America region dominates the global drilling chemicals market owing to ongoing exploration and production activities in countries like US and Canada. Presence of large reserves of shale oil & gas coupled with increasing rig count in the US is driving the demand in the region.

Key players :

 

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 new product launches and partnerships with smaller players to expand their global footprint in this growing market.

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