Thursday, 18 July 2013


Market Research Reports : Transparency Market Research published new market report "Drilling Fluids (Oil-Based Fluids, Synthetic-Based Fluids and Water-Based Fluids) for Oil and Gas (Offshore & Onshore) Market - Global Industry Analysis, Size Share, Growth, Trends and Forecast, 2012 - 2018," the global market for drilling fluids was valued at USD 7.20 billion in 2011 and is expected to reach USD 12.31 billion by 2018, growing at a CAGR of 8% from 2012 to 2018.


Depleting onshore reserves have prompted the industry to shift focus towards developing deep sea reserves, which increases the overall cost of wells and in turn generates more revenue for drilling fluid manufacturers. This trend is expected to drive the global demand for drilling fluids over the forecast period. Increasing exploration of shale gas, coal bed methane (CBM) and other unconventional resources promotes the use of horizontal drilling, which is also expected to boost market revenue for drilling fluids. However, growing environmental concerns regarding the use and disposal of drilling fluids coupled with geopolitical issues in key oil producers in the Middle East is expected to hinder the market growth over the forecast period.

The successful implementation of nanotechnology in various industries has prompted industry participants to apply nanotechnology in the oil and gas industry. Major companies such as MI-SWACO (a Schlumberger company), Newpark Drilling Fluids, and Halliburton among others, have been investing heavilyin developing drilling fluids using nanotechnology.
WBFs (Water Based Fluids) emerged as the leading drilling fluid product consumed 

worldwide and accounted for more than 55% of the total market in 2012. WBFs are considered to have minimum toxicity among drilling fluids and are extensively used for offshore drilling. Along with being the largest product segment, WBFs are also expected to be the fastest growing segment, at an estimated CAGR of 8.5% from 2012 to 2018. OBFs (Oil Based Fluids) on the other hand operate efficiently but carry the maximum risk of causing environmental hazards owing to which the industry is shifting focus towards SBFs (Synthetic-
Based Fluids) which has both OBF and WBF like attributes.

Onshore oil and gas consumed most of the drilling fluids and accounted for over 70% of the total market in 2012. The increasing onshore drilling activities in the Middle East, North America and Asia Pacific are expected to boost the demand for drilling fluids in onshore reserves. Growing investments in the "Golden Triangle" (Gulf of Mexico, offshore Brazil and offshore West Africa) on account of the presence of extensive natural resources is expected to drive the market for drilling fluids required in offshore oil and gas exploration and production.

North America continues to be the leading market for drilling fluids and accounted for over 55% of the global market in 2012. Growing exploration of shale gas in U.S. and Canada is expected to drive the market for drilling fluids over the forecast period. Central and South America is expected to be the fastest growing market for drilling fluids at a CAGR of 9.5% from 2012 to 2018. Enhanced drilling activity in offshore Brazil and Venezuela is anticipated to drive the market for drilling fluids in the region. Governmental support in the form of tax holidays and subsidies to E&P companies in order to encourage oil and gas production in India and China is expected to boost the drilling fluids market in Asia Pacific.

The global market for drilling fluids is highly concentrated as the top four companies together accounted for over 65% of the total market in 2012. Some of the major companies operating in the global market include Anchor Drilling, Baker Hughes, Canadian Energy Services, China Oilfield Services Limited, Halliburton, Newpark Drilling Fluids, Schlumberger and Weatherford 
International among others.

This report segments the global drilling fluids market as follows:

Drilling Fluids Market: Product Segment Analysis
  • Oil Based Fluids (OBFs)
  • Synthetic Based Fluids (SBFs)
  • Water Based Fluids (WBFs)

Drilling Fluids Market: Application Analysis
  • Offshore Oil and Gas
  • Onshore Oil and Gas

Drilling Fluids Market: Regional Analysis
  • North America
  • Europe
  • Middle East and Africa
  • Asia Pacific
  • Central and South America

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