According to a new market research report the global drilling and completion fluids market is expected to grow from an estimated $ 9.62 billion in 2018 to $ 12.76 billion by 2023, registering a CAGR of 5.82% during the forecast period. This growth can be attributed to the increased drilling activities for oil and gas production and rise in the exploration of shale gas.
The onshore application segment led the drilling and completion fluids market in 2017 and is projected to dominate the market during the forecast period. As the majority of global oil and gas reserves are present onshore, it accounts for the larger share of the total market. Drilling activities are on the rise in more challenging onshore regions, owing to an increase in the demand for oil and gas globally. The number of wells drilled onshore is drastically large than wells drilled offshore in 2017.
The water-based fluid system is the largest segment of drilling and completion fluids market and is suitable for all applications including onshore and offshore. Water-based fluids are cost-effective and eco-friendly as compared to non-aqueous based fluids. Technological advancements have resulted in the use of water-based fluids in challenging high-pressure high-temperature conditions in deep and ultra-deepwater drilling activities. The discharge policies for water-based fluids are also not very stringent across the world due to the presence of less toxic chemicals. Thus, water-based fluid is the fastest growing segment due to cost effectiveness, less toxicity, and easy availability.
North America is the leading market for drilling and completion fluids. The market is driven by the increase in oilfield discoveries and drilling activities across the region. The rise in the exploration of shale gas, tight oil, and other unconventional resources has increased the demand for drilling and completion fluids. The presence of vast shale gas reserves in the North American region has resulted in improved offshore activities in this region. The offshore exploration activities in the Gulf of Mexico are on the rise, which has led the companies to expand within the region.