Drilling chemicals are additives used during the exploration and drilling process in the oil and gas industry. These chemicals aid in drilling by emulsifying cuttings, reducing friction, maintaining pressure, controlling corrosion, and stabilizing shale. Various types of drilling chemicals include shale inhibitors, lubricants, fluid loss additives, detergents, dispersants, pH adjusters, and breakers. Their application helps increase productivity and efficiency along with the prevention of cave-ins.
The global Drilling Chemicals Market is estimated to be valued at Us$15402.68 Mn in 2024 and is expected to exhibit a Cagr Of 7.8% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increase in offshore and unconventional drilling activities is one of the major drivers fueling the growth of the drilling chemicals market. According to BP statistics, the volume of oil and gas extracted from offshore fields has significantly increased in the last decade owing to declining reserves from onshore fields. Further, shale reserves have also become increasingly accessible due to advancements in hydraulic fracturing and horizontal drilling techniques. Drilling chemicals play a vital role in offshore and unconventional drilling by maintaining wellbore stability, reducing friction, and controlling well pressure. Their application helps overcome challenges arising from high-pressure zones and unstable formations. This extensive use of drilling chemicals for offshore and shale exploration is expected to propel the market growth over the forecast period.
SWOT Analysis
Strength: The Drilling Chemicals market witness high profit margins as drilling chemicals help enhance productivity and efficiency of drilling operations. Drilling chemicals also assist in controlling wellbore stability. The rising shale gas and shale oil exploration activities require extensive use of drilling chemicals.
Weakness: Stringent environmental regulations regarding disposal and release of drilling waste poses challenges for the growth of the drilling chemicals market. Additionally, volatility in crude oil prices impacts exploration and production budgets of oil & gas companies.
Opportunity: Advancements in drilling technology have increased the complexity of drilling operations. This makes optimizing drilling performance with chemicals increasingly important. Furthermore, the focus on unconventional resources such as tight oil creates demand for drilling chemicals.
Threats: Economic slowdowns can negatively impact capital expenditure of oil & gas industry players on drilling activities. Development of alternatives to drilling chemicals also threatens the market.
Key Takeaways
The Global Drilling Chemicals Market Demand is expected to witness high growth over the forecast period of 2024 to 2031 supported by increasing complex drilling activities. The global drilling chemicals market is estimated to be valued at US$15402.68 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024-2031.
North America currently dominates the market owing to ongoing exploration and production activities in the region. The United States, led by shale developments, account for the largest market share in the region. This is attributed to high drilling and completion activities in the prolific unconventional plays of the US such as the Permian basin, Eagle Ford, and Bakken. Increasing exploration of tight oil reserves has significantly contributed to the demand for drilling chemicals in the region.
Key players :
Key players operating in the drilling chemicals market are Cerner Corporation, Elekta, Accuray, RaySearch Laboratories, Flatiron Health, Koninklijke Philips N.V., McKesson Corporation, Epic Systems Corporation, CureMD Healthcare, Varian Medical Systems, Inc. Cerner Corporation dominates the market owing to its collaboration with drilling companies to provide optimized chemical programs. Elekta also has a strong presence with its portfolio of drilling chemicals and chemistries.
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