ALBANY, New York, April 8, 2019 /PRNewswire/ -- Transparency Market Research (TMR) analyses that the global drilling fluids market is highly competitive due to the presence of numerous local and global players. Companies including Schlumberger, Newpark Resources Ltd, Baker Hughes- A GE Company, Clariant, and Akzo Nobel are some of the prominent players in the drilling fluids market.
According to TMR, the global drilling fluids market is estimated to expand at a CAGR of 5.9% over the forecast period from 2018 to 2026 to attain a value of US$11,121.1 Mn by 2026-end. The market stood at US$6660.5 Mn in the year 2017.
Based on the type, the water-based muds segment has wide-ranging applications as they are less expensive than synthetic-based muds and oil-based muds. This high demand is expected to help the segment to maintain its position over the forecast period. Based on applications, the offshore drilling segment is expected to be the dominant segment as the mechanical process, is able to drill below the seabed. Based on the region, in terms of value, North America held a leading share in the global drilling fluids market in 2017. This growth of the drilling fluids market in the North America region is attributable to rising investments in production with advanced techniques and exploration of offshore oil & gas.
Growing Investment for Enhancing Production to Propel Market Growth
Drilling fluids or drilling muds are produced during the drilling operation across offshore or onshore drilling of oil and gas. These have extensive applications in the drilling of subterranean wells as it has good control on the surface. Rise in upstream activities by the oil & gas industry in order to enhance their production capacity is boosting drilling fluids market. Additionally, demand for oil & gas is increasing substantially coupled with fluctuations in the prices of the natural gas has lowered; however, the prices are increasing from the past couple of years. These factors are encouraging exploration activities and production of oil & gas, which is benefiting the growth of the drilling fluids market.
Further, growing investment in the exploration of oil & gas is also driving growth of the market. The investment across Marcellus and Bakken field in the U.S. and Gulf of Mexico production platforms, Na Kika, Atlantis, Thunder Horse, and Mad Dog is also boosting production of the drilling fluids and is likely to benefit growth of the global drilling fluids market.
Moreover, growing investments in the chain of the oil & gas sectors are supporting to cater to this demand for drilling fluids. For instance, recently, one of the key players, Exxon Mobil Corporation declared a robust investment of US$20.0 bn to enhance the capacity of its oil refining plant present in the U.S. Gulf Coast. The company will be investing this amount by the end of 2022, which is expected to help to cater to the demand for drilling fluids and drive growth of the drilling fluids market in the coming years.
Growing Government Support to Offer Opportunities for Growth
However, the presence of stringent government regulations toward use and disposal of drilling fluids to ensure the safety of environment along with the geopolitical issues is anticipated to pose as a restrain the market growth over the forecast period. Additionally, the growing need for high initial investment is also restraining the growth of the drilling fluids market mainly in the developing countries.
Nonetheless, numerous initiatives to the expansion of the oil & gas industry globally and mainly in emerging economies are offering lucrative growth prospects for the growth of the global drilling fluids market. Further, the initiative by the government of India for allowing 100% Foreign Direct Investment (FDI) in order to private sector refining projects is also offering opportunities for key players to tap-in growth in the region. Pouring investments in Mexico for oil & gas exploration, enhancing drilling activities, and production of oil & gas are expected to offer opportunities for growth in drilling fluids market in the near future too.
This information is encompassed in the report by TMR, titled, "Drilling Fluids Market (Type: Water-based Muds, Oil-based Muds, and Synthetic-based Muds; and Application: Onshore and Offshore) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026."
For the study, the drilling fluids market has been segmented as follows:
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