North America Drilling Fluids Market: Snapshot
The North America drilling fluids market is growing significantly in the drilling process for mineral extraction bore wells, and oil and gas extraction. The drilling fluids also known as drilling mud are used to lubricate and cool the drill bits, carry rock cuttings to the surface, and maintains stability of the well. Moreover, they also function as emulsifiers, corrosion inhibitors, filtration reducers, defoamers, shale inhibitors, biocides, and weighing agents, with specific additives.
Increasing implementation of horizontal drilling is expected to boost the demand for drilling fluids across the region. In addition to that, developing deep sea reserves and rising demand for drilling activities supplemented by the shift towards exploring and developing are also projected to flourish the drilling market in North America.
According to Transparency Market Research, the North America drilling fluids market is projected to attain a valuation of US$7.2 bn by the end of 2019. During the course of seven years between 2013 and 2019, the market is anticipated to rise at 7.5% CAGR.
Low Cost of Water Based Fluids to Boost Demand for Drilling Fluids
North America drilling fluids market is categorized on the basis of product and application of drilling fluids. Based on the oil and gas industry, the drilling fluids market is bifurcated into onshore and offshore. Out of these, onshore drilling fluids segment is projected to dominate the North America drilling fluid market during the forecast period. According to the report the onshore application of drilling fluids in comparatively high than offshore.
Based on product type, the market is segmented on the basis of oil based fluids (OBF), water based fluids (WBF), and synthetic based fluids (SBF). Among these, water based fluids are likely to dominate the market due to its low cost and environmental friendly content during the forecast tenure. Due to technological advancements, inhibition properties, and improved efficiency, the water based fluids is likely to grow in offshore explorations.
Mexico to Strengthen Its Position Due to Increasing Access to Foreign Companies
In 2012, the U.S. dominated the North America drilling fluids market and held 80% of revenue in this market. After the U.S., Canada has led the market but faced sluggish growth rate because of unrealized potential of shale gas. On the other hand, Mexico was considered one of the niche markets, and access to foreign companies in this country is projected to rise in the near future. In addition to that, increasing investment in onshore and offshore drilling activities is anticipated to accelerate the overall product demand during the forecast period.
In 2012, Schlumberger Technology Corporation was considered as a leading player on the North America drilling fluids market by holding substantial shares in the market. The company merged with M-I SWACO that helped them in reinforcing their position in this region. Among the various oilfield service companies, Halliburton Company is considered as one of the leading players.
Rising investments in offshore and onshore drilling activities is a key factor that is expected to stimulate the North America drilling fluids market in the near future. The market research report provides in-depth and high-level analysis of the regional market, focusing on the major product and application segments of drilling fluids. It provides sharp insights on the various forces that drive the market and those that restrict its growth.
The major revenue generating segments with respect to product, application and geography, are accentuated, providing current, historic, and forecast statistics for the same. The report is designed to guide market players and help them make strategic business decisions based on the information provided.
With the help of Porter’s five forces analysis, the report offers a comprehensive assessment of the competitive landscape, identifying key vendors and their strengths and weaknesses. Their individual industry share, progress over the years, financial overview, profitable areas of operation, and future plans are discussed in the research report.
Overview of the North America drilling fluids market
On the basis of application, the North American market for drilling fluids can be divided into offshore oil and gas, and onshore oil and gas. The main products analyzed in the report include synthetic-based fluids (SBFs), oil-based fluids (OBFs), and water-based fluids (WBFs). The three prime regions covered are the U.S., Mexico, and Canada.
The North American drilling fluids industry was estimated to be worth $4,336.8 million in the year 2012, and is forecast to be worth $7,203.6 million in 2019, growing at a CAGR of 7.5% during that period. Owing to rising demand for drilling fluids, the U.S. accounted for 80% of the industry share in 2012, making it the largest regional segment in the overall North American market. Onshore applications gained precedence over offshore ones in 2012 and are expected to register a 7.9% CAGR in terms of revenue.
There has been a growing demand for crude oil and natural gas in North America, and focus has shifted towards developing deep sea reserves and horizontal drilling. These factors have boosted the North America drilling fluids market. Moreover, increasing need to develop unconventional resources such as coal bed methane and shale gas has also bolstered the growth.
Key challenges faced by the industry include growing concern regarding environmental protection and the disposal and contamination of drilling fluids.
Companies mentioned in the research report
The leading industry players in the North America drilling fluids market include Halliburton Company, Schlumberger Technology Corporation, Newpark Resources Inc., Baker Hughes Incorporated, Canadian Energy Services & Technology Corp., Weatherford International Ltd., Anchor Drilling Fluids USA Inc., China Oilfield Services Limited, and National Oilwell Varco.
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
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