Oilfield Drilling Fluid Additive Market: Overview
Drilling fluid plays an important role in oil and gas exploration activities. It is the mixture of water, oil, clay, and several chemicals. It is also called drilling mud. Oilfield drilling fluid additives are chemical formulations used in various functions in the oil & gas industry. They help create proper fluid weight to balance pressure formation and optimize fluid flow. Other functions include maintaining strong boundary lubrication films in silicate-based mud systems specialized for shale drilling, which is done by lubricating agents. Other important functions are wettability, detergency, and clay stabilization. Selection of drilling fluid additives requires careful consideration of several criteria such as well design, rock composition, potential formation pressures and temperatures, reservoir chemistry, protection of the producing zone, and environmental regulations.
Oilfield Drilling Fluid Additive Market: Demands & Developments
Rise in demand for oil and gas due to industrialization, urbanization, and population growth is driving the drilling market across the globe. This is ultimately boosting the oilfield drilling fluid additive market. Increase in exploration and new discovery of oil and gas deposits are fueling the oilfield drilling fluid additive market. Furthermore, rise in investments in the oil & gas sector is boosting the oilfield drilling fluid additive market. For instance, in April 2018, U.S. Oil & Gas Plc (USOIL) started new exploration drilling at the Hot Creek Valley project in Nevada. However, high cost of drilling and stringent government regulations on offshore drilling are estimated to hamper the oilfield drilling fluid additive market.
Oilfield Drilling Fluid Additive Market: Key Segments
The global oilfield drilling fluid additive market can be segmented based on type, fluid formulation, and region. Based on type, the oilfield drilling fluid additive market can be classified into fluid viscosifiers, corrosion inhibitors, weighting agents, fluid loss control additives, defoamers, dispersants, and others. Fluid loss control additives, also known as filtration control agents. Clays, dispersants, and polymers such as starch are widely used as fluid-loss control additives. Weighting agents such as barite and hematite are high-density minerals. They are largely used to increase the hydrostatic pressure of mud to equalize downhole pressures.
Based on fluid formulation, the oilfield drilling fluid additive market can be segmented into water based fluids, oil based fluids, and synthetic based fluids. Water based fluids are largely used drilling fluid systems. These fluid systems are less expensive, require less chemical treatment before disposal, and are eco-friendly. This is expected to fuel the demand for water based fluids during the forecast period.
Oilfield Drilling Fluid Additive Market: Regional Outlook
In terms of region, the global oilfield drilling fluid additive market can be segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. North America dominated the global oilfield drilling fluid additive market in 2017. This trend is estimated to continue during the forecast period owing to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region. According to Baker Hughes Inc. a General Electric Company, the oil rig count in the U.S. increased by approximate 42% in 2017 compared to that in 2016 owing to the recovery in crude oil prices. Offshore developments and discoveries, particularly in the Red Sea region, by countries such as Qatar, the UAE, and Saudi Arabia are anticipated to drive the oilfield drilling fluid additive market in the Middle East.
Oilfield Drilling Fluid Additive Market: Key Players
Major companies operating in the global oilfield drilling fluid additive market include Baroid Industrial Drilling Products, Prince Energy, OMNOVA Solutions Inc., Flotek Industries, Inc., The Dow Chemical Company, Akzo Nobel N.V., Lubrizol Corporation, Ltd., Croda International Plc, and Stepan Company.
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