The Global Drilling Chemicals Market Growth Is Set To Boost Productivity Gains Across Industries
Drilling Chemicals Market
Drilling chemicals are used in various drilling fluids to enhance the
performance and efficiency of drilling operations. Drilling chemicals help in
lubricating and cooling the drill bit during drilling by forming a thin, low
friction filter cake on the walls of the borehole. They aid in removing
cuttings from the bottom of the hole to surface, maintain the stability of the
borehole, and prevent damage to the sub-surface formations. Drilling chemicals
also minimize torque and drag during drilling and improve drilling rate of
penetration.
The
global Drilling Chemicals Market is
estimated to be valued at Us$ 15,402.68
Million 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 Opportunity:
Optimization of drilling fluid properties is one of the major opportunities in
the drilling chemicals market. Drilling fluids play a vital role in drilling
operations by lubricating the drill bit, carrying drill cuttings to the
surface, maintaining downhole pressure, and enhancing drilling rates. However,
adverse formation conditions such as high temperatures and pressures can
deteriorate drilling fluid properties. Chemical additives help restore and
optimize critical drilling fluid properties. They improve shale inhibition,
maintain viscosity and filtration properties, inhibit clay hydration, and
support efficient removal of drill cuttings. The use of tailor-made drilling
chemicals suited for specific well profiles and downhole conditions can boost
drilling productivity substantially.
Porter's Analysis
Threat of new entrants: The drilling chemicals market requires huge capital
investments and technological expertise which poses significant entry barriers
for new players. Regulatory compliance related to chemical usage also deters
new entrants.
Bargaining
power of buyers: Buyers have moderate bargaining power due to availability of
substitutes and fragmented nature of the market with availability of multiple
drilling chemicals manufacturers.
Bargaining
power of suppliers: Suppliers have moderate to high bargaining power due to
availability of raw material sources and barriers for suppliers switching.
Threat
of new substitutes: Threat of new substitutes is low as drilling chemicals have
established demand and new substitutes require huge investments for replacing
established products.
Competitive
rivalry: The market is characterized by tough competition between major players
focusing on product innovation and expansion into new regions.
SWOT Analysis
Strength: Wide applications in oil & gas exploration and deep drilling
activities. Drilling chemicals improve borehole stability and support well
integrity.
Weakness:
Stringent environmental regulations on discharge and disposal of drilling
waste. Fluctuations in crude oil prices impact demand.
Opportunity:
Increasing exploration & production spending on unconventional resources.
Expanding applications in directional drilling and managed pressure drilling.
Threats:
Economic slowdowns curb new oil & gas project sanctions. Growing adoption
of renewable energy reduces dependence on fossil fuels.
Key Takeaways
The Global Drilling Chemicals Market Demand is
expected to witness high growth over the forecast period of 2024 to 2031. The
global drilling chemicals market is estimated to be valued at US$ 15,402.68
million in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast
period 2024-2031.
Regional analysis:
North
America region is estimated to account for over 35% of the global drilling
chemicals market share through 2031 led by USA. Presence of major shale basins
and increasing investments in tight oil & gas reserves are fueling demand.
The Asia Pacific region is anticipated to grow at the fastest rate during the
forecast period led by China, India and Southeast Asian countries pursuing
energy security through domestic oil & gas production.
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 and Epic Systems Corporation are
recognized as the market leaders with wide global presence and service
offerings catering to oilfield operators.
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