Key Market Overview:
Onshore Drilling Fluids Market size was valued at USD 4.07 Billion in 2022, accounting for a CAGR growth of 5.0% during the forecast period (2023-2030), and the market is projected to be valued at USD 6.31 Billion by 2030.
Onshore drilling fluids are specialized fluids that are used during the drilling and exploration of oil and gas wells on land. These fluids are designed to perform several important functions, including lubrication, cooling, and stabilization of the drilling equipment, and removal of cuttings from the wellbore. Onshore drilling fluids are essential for drilling operations as they help to maintain the stability and integrity of the wellbore, prevent damage to the equipment, and ensure efficient drilling progress.
The key manufacturers operating in the onshore drilling fluids market engage in providing drilling, completions, and production services to oil and gas companies operating onshore. For instance, in March 2022, Schlumberger secured a contract from TotalEnergies for the provision of drilling, completions, and production services for the Tilenga onshore oil development project in Uganda. This contract is expected to enhance Schlumberger’s presence in the East African market and enable the company to provide its expertise and services to support TotalEnergies’ operations in the region.
Moreover, Asia Pacific is expected to be the fastest-growing region in the onshore drilling fluids market during the forecast period as the region is home to several major oil and gas-producing countries such as China, India, and Indonesia. These significant reserves of oil and gas are developed to meet the growing demand for energy in the region. Further, the increasing adoption of advanced drilling technologies in the region is also driving the demand for high-performance drilling fluids.
Market Dynamics:
Driver:
The global demand for oil and gas continues to rise, particularly in emerging economies. This led to increased exploration and production activities, which in turn drives the demand for drilling fluids. For instance, for the exploration and production of oil and gas wells, drilling fluids play a critical role. They are used to lubricate and cool the drilling equipment, stabilize the wellbore, and remove cuttings from the well.
Restraints:
The onshore drilling industry requires significant upfront investment in equipment, infrastructure, and personnel because drilling for oil and gas is a complex and technically challenging process that involves several stages. The upfront investment includes the cost of drilling rigs and equipment pipelines, storage tanks, and transportation systems which hinders the growth of the market.
Opportunities:
One major opportunity for the onshore drilling fluids market is the increasing focus on sustainability and environmental regulations. As the world shifts towards cleaner energy sources and more sustainable practices, there is a growing demand for eco-friendly drilling fluids that have a minimal environmental impact. This presents an opportunity for companies to develop and market new types of drilling fluids that are biodegradable, non-toxic, and more environmentally friendly. For instance, the development of eco-friendly drilling fluid by using biodegradable polymers as its base. These fluids have a lower environmental impact than traditional oil-based drilling fluids, which can contaminate soil and water in the event of a spill.
Onshore Drilling Fluids Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 6.31 Billion |
| CAGR (2023-2030) | 5.0% |
| By Product Type | Oil-based Drilling Fluid (Dispersants, Protective Chemicals, Wetting Agents, and Others), Synthetic-based Drilling Fluid (Rheology Modifiers, Viscosifiers, Thinners, and Others), Water-based Drilling Fluid (Surfactants, Defoamers, and Others), and Others |
| By Well Type | HPHT and Conventional |
| By Geography | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | Schlumberger Limited, Halliburton Energy Services, Inc., Baker Hughes Company, NOV Inc., Weatherford International Plc, Newpark Resources Inc., Petrochem Performance Chemical LLC, Tetra Technologies Inc., AES Drilling Fluids LLC, and Canadian Energy Services L.P. |
Market Segmentation:
By Product Type
The product type segment is categorized into oil-based drilling fluid (dispersants, protective chemicals, wetting agents, and others), synthetic-based drilling fluid (rheology modifiers, viscosifiers, thinners, and others), water-based drilling fluid (surfactants, defoamers, and others), and others. In 2022, the water-based drilling fluid segment accounted for the highest market share in the onshore drilling fluids market. This is because, water-based drilling fluids offer a good balance of performance, environmental considerations, and cost-effectiveness, making them a popular choice for many drilling operations. Further, water-based drilling fluids are generally considered to be safer to handle and use than other types of drilling fluids, as they are less toxic and pose fewer health risks to workers. Hence, contributing to the growth of the segment.
However, synthetic-based drilling fluid is expected to be the fastest-growing segment in the market over the forecast period as this offers superior performance in certain drilling conditions, such as high-temperature and high-pressure environments. They also offer better lubricity, thermal stability, and shale inhibition compared to water-based drilling fluids. Thus, these above-mentioned properties are expected to increase the growth of the segment.
By Well Type
The well-type segment is categorized into HPHT and conventional. In 2022, the conventional segment accounted for the highest market share as it typically involves shallower drilling depths and lower well temperatures and pressures compared to HPHT wells. In addition, conventional wells have been the primary source of oil and gas production for decades, and many oil and gas companies have established expertise in drilling and operating conventional wells. As a result, these companies have established infrastructure, personnel, and operational procedures that are optimized for conventional drilling, further contributing to the dominance of this well-type segment.
HPHT well allows for the extraction of oil and gas reserves that were previously inaccessible due to extreme temperatures and pressures. They offer benefits such as higher productivity, longer well life, and increased reserves recovery. Additionally, these wells may help to offset declining production from conventional wells and provide access to new sources of energy. Hence, the HPHT well type is expected to be the fastest-growing segment during the forecast period.
By Region
By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In 2022, North America accounted for the highest market share in the onshore drilling fluids market. This is because North America is home to some of the world’s largest oil and gas producers and has a well-established drilling industry. The U.S., in particular, is a major market for onshore drilling fluid products, driven by shale gas and tight oil production.
However, Asia Pacific is expected to be the fastest-growing region in the market during the forecast period driven by increasing demand for energy from emerging economies such as China and India. These countries have significant potential for onshore oil and gas production, and they are investing heavily in exploration and production activities. In addition, increasing environmental concerns and regulations in the region drive the demand for environmentally-friendly drilling fluids and additives.
Onshore Drilling Fluids Market Competitive Landscape:
The onshore drilling fluids market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include–
- Schlumberger Limited
- Halliburton Energy Services, Inc.
- Baker Hughes Company
- NOV Inc.
- Weatherford International Plc
- Newpark Resources Inc.
- Petrochem Performance Chemical LLC
- Tetra Technologies Inc.
- AES Drilling Fluids LLC
- Canadian Energy Services L.P.
Recent Developments:
- In March 2022, Schlumberger secured a contract from TotalEnergies for the provision of drilling, completions, and production services for the Tilenga onshore oil development project in Uganda. The contract is expected to involve a comprehensive range of services, highlighting Schlumberger’s capability in delivering end-to-end solutions for oil and gas projects.
- In September 2021, Chevron U.S.A. Inc. and Bunge North America, Inc. signed a memorandum of understanding (MOU) to establish a proposed 50/50 joint venture aimed at meeting the growing demand for renewable fuels and developing lower carbon-intensity feedstocks.
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