Drilling fluids are used to drill wells smoothly and eliminate drill cuttings from boreholes that are commonly generated during the process. Drilling fluids help extract oil and gas from reserves efficiently and effectively. Over the past few years, drilling activities have increased primarily in the offshore areas in Latin America. Drilling activities in the region are estimated to grow rapidly during the forecast period primarily due to impending governmental supportive schemes. Rise in drilling activities can be ascribed to significant investment in exploration and production activities. Majority of demand for drilling fluids arises from offshore regions. Golden Triangle formed by the Gulf of Mexico (GOM), West Africa and Brazil is the most attractive region for deep and ultra-deep water reserves across the world. Increasing distance of an oil field from the seashore signifies an increase in water depth. Drilling deep water reserves would require additional drilling fluids in a proper mix relative to an onshore well. This is expected to propel the consumption of drilling fluids in the region in the near future.
Venezuela and Argentina are among the top oil and gas exporting countries in the world. Venezuela is one of the top 10 oil producers in the world. Most onshore drilling activities in Latin America take place in Argentina and Venezuela. These countries are characterized by the discovery of sizeable shale gas reserves. A shifting trend towards unconventional source of energy is also a major driver for growth of the drilling fluids market. Countries are exploring unconventional gases such as shale gas and coal bed methane (CBM) to increase their production and shift towards higher eco-friendly fuel. Strong governmental support schemes that are likely to transform the demand scenario in Latin America are anticipated to reinforce Argentina’s economy with new avenues for the drilling fluids market.
The drilling fluids market in Latin America is segmented based on types of products into water-based fluids (WBFs), oil-based fluids (OBFs) and synthetic-based fluids (SBFs). Most drilling operations are performed using WBFs due to its cheap price, eco-friendly nature and less chemical treatment required before its disposal. In offshore regions, WBFs can be discharged into the seawater after treatment. This helps save logistics cost to bring waste drilling fluid onshore for disposal. Environmental regulations do not permit the disposal of OBFs and SBFs into the seawater due to their adverse impact on aquatic life. These fluids are transported onshore for treatment or after treatment (as per the facilities available at the offshore rig for treatment), and then disposed of using proper and safe techniques. SBFs and OBFs can be used several times after treatment and are disposed of when further treatment is uneconomical. Based on technology, the drilling fluids market in Latin America has been segmented into dispersed systems and non-dispersed systems. Dispersed systems accounted for majority of the market share in terms of revenue in 2013. This segment is anticipated to grow rapidly during the forecast period.
Baker Hughes Incorporated, Halliburton Company, Schlumberger Limited, and Weatherford International Limited are some of the key players in the drilling fluids market in Latin America. In 2013, these players collectively constituted more than 60% of the total market share in the region. Other players in the drilling fluids market in Latin America include Imdex Limited (AMC Oil & Gas), Unique Drilling Fluids, Inc., and Newpark Resources, Inc.
Rising offshore drilling activities coupled with a paradigm shift towards the development of shale gas and deep-sea reserves is expected to drive the drilling fluids market in Latin America from 2014 to 2020. Currently, manufacturers of drilling fluids are involved in a transition phase; they are striving to capitalize on increasing demand for drilling fluids in offshore areas of Brazil and Venezuela and onshore unconventional reserves of Argentina and Venezuela. However, the drilling fluids industry in Latin America is affected by various factors such as stringent government regulations, lack of infrastructure and rising demand for oil and gas.
This report analyzes and forecasts the drilling fluids market in Latin America in terms of revenue (USD Million) and volume (Kilo Tons) from 2012 to 2020. The report also estimates revenue and volume for major countries in Latin America such as Argentina, Brazil and Venezuela. Additionally, the report analyzes major driving and restraining factors for drilling fluids and highlights potential opportunities for the drilling fluids market in the near future. Drivers, restraints and opportunities for the drilling fluids market are recognized and articulated after conducting in-depth analysis of the oil and gas industry in Latin America. Growth of the oil and gas industry in the region is determined primarily by the government or state-owned oil and gas companies such as Petrobras (Petróleo Brasileiro S.A.), YPF (Yacimientos Petrolíferos Fiscales) and PDVSA (Petróleos de Venezuela, S.A.). Furthermore, the monopoly prevalent in the market directly affects drilling fluids companies operating in Latin America.
Market segmentation of the study is based on product segments including water-based drilling fluids (WBFs), oil-based drilling fluids (OBFs) and synthetic drilling fluids (SBFs). It involves further analysis of sub-segments of each product type in countries in Latin America. Market revenue and volume of the drilling fluids categories mentioned above is also provided for countries, with detailed analysis of the drilling fluids market in Latin America. Water-based drilling fluids (WBFs) are further segmented into dispersed and non-dispersed types. The report is customized as per the client’s requirement to provide an in-depth analysis of the drilling fluids market in Latin America with a detailed analysis of countries such as Brazil, Argentina and Venezuela. The report further offers a combined brief overview of drilling fluids with Ecuador, Colombia, Peru and Bolivia, categorized under the others segment. Additionally, the report covers entire oil and gas based application areas of drilling fluids, including onshore and offshore activities.
The report includes detailed value chain analysis of the drilling fluids sector along with the comprehensive view of major players in the drilling fluids market in Latin America. The study analyzes market competition using Porter’s five forces model and describes the impact of suppliers, buyers, substitutes, new entrants and market competition. Porter’s five forces model is designed based on market dynamics along with micro and macro economic factors that affect drilling fluids companies in Latin America. Market attractiveness analysis helps in estimating the rising popularity of product segments during the forecast period. The study covers market share analysis for major players operating in the drilling fluids market. Companies profiled in the report include Baker Hughes Incorporated, Halliburton Company, Newpark Resources, Inc., Schlumberger Limited, Weatherford International Limited, and Imdex Limited (AMC Oil & Gas). Company profiles comprise product portfolio, financial overview (updated based on data availability), SWOT analysis, business strategy and recent developments.
Prices of drilling fluids are volatile in nature and change depending upon the application and types of product segments. Prices of overall drilling fluids are expected to fluctuate, leading to a squeeze in profit margins. The study presents a comprehensive assessment of stakeholder strategies and winning imperatives for them by segmenting the drilling fluids market as below:
Latin America Drilling Fluids Market: Product Segment Analysis
- Water-based fluids
- Oil-based fluids
- Synthetic-based fluids
Latin America Drilling Fluids Market: Technology Analysis
- Dispersed systems
- Non-dispersed systems
Latin America Drilling Fluids Market: Country-wise Analysis
- Others (Rest of Latin America)