Oilfield Drilling Fluid Additives Market

Oilfield Drilling Fluid Additives Market Size (2023-2028)

Oilfield Drilling Fluid Additives Market was worth US$ 1675.10 million in 2022 and is anticipated to increase with a CAGR of 2.56% during (2023-2028)

Oilfield fluids are extensively reliant on additives in the oil and gas industry. In addition, these drilling fluid additives are frequently employed as a supporting agent while drilling holes on the ground surface, such as in oil and gas mining.

In addition to this primary application, drilling fluid additives are used in primary bore wells. The use of drilling mud additives in oil mining is influenced by the fact that it uses hydrostatic pressure to prevent formation fluids from infiltrating into the bore well and keeps the drill bit cool, effectively finishing drill cutting and deferring drill cutting when drilling is halted. The drilling assembly is moving into the hole. This drilling mud ingredient is used to remove formation damage and protect against corrosion. Wetting agents to maintain usability capacity, dispersant, and clay stabilization are among the other functions.

Oilfield Drilling Fluid Additives Market Drivers and Restraints:

The implementation of nanotechnology in drilling fluids, integrated drilling systems, and exploration in offshore drilling are the primary factors that drive the global oilfield drilling fluid additives market growth during the forecast period. Nanoparticles are widely used in practically all industrial operations, and their usage in the oil and gas mining industry to reduce environmental issues associated with oil recovery is risky. However, many studies have found that incorporating nanoparticles into drilling lubricants can improve their thermal stability. According to key players' R&D, nano-additives can strengthen the strength of a good bore, reduce fluid loss, and reduce friction during drilling to a maximum extent. An integrated system that provides numerous solutions in a single unit is always in demand, and the client expects it to be available across multiple geographies. These regionally available integrated solution systems can be made viable through acquisition and merger. For example, whole in one is a multi-component integrated drilling fluid system that may be utilized for multi-directional drills, provides flexible lubricity, and delivers the performance and speed of an OB drilling lubricant in a water-based system.

With a magnificent initiative along the coasts of South America and West Africa, the oil and gas industry shifts its exploration efforts to offshore oil mining. When operating under seawater, a nanofiltration membrane is a sodium chloride permeability capable of rejecting more than 50% sodium chloride components, barium, and sodium sulfate. Seawater sulfate removal (SWSR) is a new product from GE that filters all sulfate composites from water injected for offshore drilling production. Moreover, Oilfield drilling additives are chemical formulations utilized for many tasks in oil processing. Emulsification, thinning, and dispersion of oil-based mud are all things that additive technologies excel at. They aid in creating proper fluid weighing to balance pressure formation and improve fluid flow. Lubricating chemicals also play a role in maintaining robust border lubrication films in silicate-based mud systems optimized for shale drilling. Wettability, dispersion, detergency, and clay stabilization are some of the other functions.

Increased demand from the energy sector is driving the market for oilfield drilling additives. Other key factors driving the market include the protection of oil from various harmful organisms in the biocides industry and oil protection from various harmful organisms in the biocides industry. The total cost with ecologically acceptable fluid systems, European environmental concerns, and stringent environmental regulations are likely restraints on the growth of the oilfield drilling additives market.

OILFIELD DRILLING FLUID ADDITIVES MARKET REPORT COVERAGE:

Market Segmentation: 

Oilfield Drilling Fluid Additives Market By Type:

• Fluid viscosities

• Emulsifiers

• Alkalinity control

• Scavengers

• Dispersants

• Others

Based on type, scavenger type is expected to have the largest global oilfield drilling fluid additives market share in the upcoming years. A contaminant-reacting chemical that is added to drilling mud or other fluids to transform the contamination into a less hazardous substance is treated as a scavenger. Mostly used scavenger is the oxygen scavenger. A chemical agent is used in some brines and completion fluids to prevent corrosion caused by dissolved oxygen or aggravated by it. Oxygen scavengers use a harmless chemical reaction to trap dissolved oxygen, making it unavailable for corrosive reactions. In applications where fluids must be cycled in the wellbore, the use of oxygen scavengers is especially crucial. This is because during agitation at the surface, additional oxygen may be dissolved.

Oilfield Drilling Fluid Additives Market By Fluid Formation:

• Water-based

• Oil-based

• Synthetic based

Based on fluid formation, the water-based segment is anticipated to dominate the global oilfield drilling fluid additives market during 2022 - 2027. Drilling fluid systems mostly use water-based fluids. These fluid systems are less costly, require less chemical treatment prior to disposal, and are environmentally benign. During the projection period, this is projected to fuel demand for water-based fluids. Water-based drilling fluids can meet the requirements of the respective areas by adding an additive with high environmentally-friendly performance. However, as drilling fluid emission regulations increase, environmental performance's source control becomes increasingly critical, necessitating further research.

Oilfield Drilling Fluid Additives Market Regional Analysis: 

• North America 

• Europe

• Asia Pacific 

• Latin America 

• Middle east and Africa 

The global oilfield drilling fluid additive market was dominated by North America. Due to the finding of shale deposits in the United States and the presence of a high number of private oil businesses in the region, this trend is expected to continue during the projected period. This is primarily due to the recovery in crude oil prices. According to Baker Hughes Inc., a General Electric Company, the number of oil rigs in the United States grew by around 42 percent in 2021.

The oilfield drilling fluid additive market in the Middle East is expected to be driven by offshore developments and discoveries, notably in the Red Sea region, by nations such as Qatar, the United Arab Emirates, and Saudi Arabia.

Asia Pacific is anticipated to have the highest global oilfield drilling fluid additives market CAGR in the upcoming years owing to the increasing demand for the energy sector in APAC regions.

Impact of COVID-19 on the Oilfield Drilling Fluid Additives Market:

Despite the fact that the COVID-19 pandemic is still affecting the growth of several industries, the outbreak's immediate impact is diverse. While some industries may see a drop in demand, many others will remain untouched and have bright growth potential. However, the COVID-19 epidemic significantly impacted the oil and gas industry. To contain the outbreak, government authorities issued lockdowns in numerous countries and ordered a complete halt to industrial activities. In addition, the oil and gas industry was substantially impacted by issues such as a reduced labor force and a disturbed supply chain. As a result, the market suffered significant economic losses in 2020, with a growth rate of -24.8 percent.

Recent Developments in the Global Oilfield Drilling Fluid Additives Market:

Dow showcased technology developed for various oil and gas applications, including extraction, production, refining, gas treatment, and oil distribution. Dow claims that its innovations boost energy efficiency, speed, and capacity of oil and gas processes and product performance while reducing the environmental effect.

Oilfield Drilling Fluid Additives Market Key Players:

The companies covered in the report include:

1. Akzo Nobel

2. BASF SE

3. Chevron Phillips

4. Dow Chemical

5. Innospec Inc.

6. Tetra Technologies