The drilling chemicals are increasingly used in various drilling applications in the oil and gas industry to enhance drilling efficiency and maximize production rates. Drilling chemicals help in improving drilling fluid performance, controlling formation damage, stabilizing shale formations and disposing of drill cuttings. They aid in reducing drilling time, costs and improving recovery. Some key functions of drilling chemicals include borehole stability, cleaning & cleaning, lubrication, shale inhibition and others.
The global drilling chemicals market is estimated to be valued at US$ 13370.38 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing demand from the oil and gas industry is one of the major factors driving the growth of the drilling chemicals market. Drilling chemicals play a vital role in drilling operations by improving drilling fluid performance, reducing drilling time and optimizing drilling efficiency. With increasing investments in oil and gas E&P (exploration and production) activities globally, the demand for drilling chemicals is also growing significantly. Focus on maximizing oil and gas production from mature fields through infill drilling and enhanced oil recovery (EOR) techniques is further augmenting the consumption of drilling chemicals worldwide. Expanding oilfield service sector and economic growth in emerging oil-producing countries will continue to fuel the market growth over the coming years. However, stringent environmental regulations regarding drilling waste disposal may impede the market expansion to some extent during the forecast period.
SWOT Analysis
Strength: Drilling chemicals provide enhanced productivity by improving drilling fluid performance. They help in controlling well pressure, increasing drilling rate, and reducing non-productive time.
Weakness: Stringent government regulations regarding chemical usage may hamper market growth. Improper disposal of drilling chemicals can pollute the environment.
Opportunity: Growing oil & gas exploration activities worldwide due to increasing energy demands creates new opportunities. Technological advancements in drilling chemicals will further aid the market.
Threats: Volatility in crude oil prices impacts exploration budgets of major oil companies. Shift towards renewable energy sources poses a threat.
Key Takeaways
The Global Drilling Chemicals Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global drilling chemicals market is estimated to be valued at US$ 13370.38 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030.
The market is dominated by North America currently due to many mature oilfields and increasing drilling activities in the region. Asia Pacific region is expected to grow at the fastest rate owing to rising energy demands from developing countries such as China and India. Countries like Indonesia and Malaysia are active in offshore drilling as well.
Key players
Key players operating in the drilling chemicals market are ADM, PT Darya-Varia Laboratoria Tbk, Citra Nusa Insan Cemerlang PT, Sido Muncul PT, The Tempo Group, Bayer AG, BASF SE, Pfizer Inc., Nature€TMs Sunshine Products, Inc., Amway, and Glanbia PLC. These major companies are focusing on developing green drilling chemicals through sustainable practices and technological advancements to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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