The US onshore drilling fluid market is expected to witness a CAGR of 13.92%, over the forecast period, 2018-2023. The market is majorly driven by the factors such as low break even price and high crude oil price, increasing demand for longer lateral length, and continuous growth in demand for permian basin.
Increasing Demand for Longer Lateral Length
The demand for drilling completion fluid in North America has been significantly driven by longer lateral drilling, resulting in more consumption of this fluid than normal vertical drilling. Hydraulically fractured horizontal wells accounted for most of the new wells drilled and completed since late 2014. In 2016, about 670,000 of the 977,000 producing wells were hydraulically fractured and horizontally drilled. Furthermore, in 2016, the total drilled footage reached nearly 13 million feet, approximately 10.7 million of which, were hydraulically fractured and horizontally drilled, and the values are expected to increase significantly during the forecast period. Additionally, over the past decade, the lateral lengths of the unconventional wells drilled in the United States increased from 2,500 feet to nearly 7,000 feet. Each unconventional well, on and an average is being drilled with longer lateral well sections or laterals. This is expected to translate into an increase in demand for higher volumes of drilling and completion fluid. Furthermore, as a result of an improvement in crude oil prices and the threshold oil and gas prices at which wells are profitable to drill, a bigger number of drilling rigs have re-entered the US market in 2016 and this is expected to supplement the hydraulic fracturing services market further. The horizontal drilling in unconventional oil is further driven by increasing unavailability of easy oil.
Permian Basin to Dominate the Market
The Permian Basin is also known as West Texas Basin is one of the most prolific oil and natural gas geologic basins in the United States. The basin spans West Texas and Southeastern New Mexico. The Permian Basin is approximately 250 miles wide and 300 miles long, across West Texas and Southeastern New Mexico. The basin encompasses several sub-basins, including the Delaware Basin and the Midland Basin. The basin holds the largest crude oil fields in the United States, including more than 20 of the nation’s top 100 oil fields. Moreover, with the increasing demand for unconventional resources, the activity in the Delaware Basin and the Marfa Basin has revived. Currently, the number of exploring wells are increasing in the basin. During May-June 2018, the number of rigs increased by five times. Additionally, it is the largest shale oil producing basin in the country and is poised to become one of the largest crude producing regions, only next to Saudi Arabia and Russia. The major operators in the basin include Pioneer Natural Resources Company, Occidental Petroleum Corporation, Apache Corporation, CONCHO RESOURCES INC. (COG OPERATING LLC), BHP Billiton Pet (Txla OP) CO, Cimarex Energy, and Anadarko Petroleum Corporation among others.
Key Developments in the Market
September 2018: Schlumberger launched a new technology named CemFIT Shield mud-sealing cement system at the society of petroleum engineers annual technical conference and exhibition. The CemFIT Shield system provides zonal isolation technology, which helps in the removal of residual drilling fluids in long horizontal wells.
The major players include – Halliburton, Newpark Resources, Schlumberger, Baker Hughes, CES Energy solutions, and Q’Max Solutions, among others.
United States Onshore Drilling Fluid Market Report Summary
United States Onshore Drilling Fluid Market
(2016 – 2023)
Schlumberger launched a new technology named CemFIT Shield mud-sealing cement system at the society of petroleum engineers annual technical conference and exhibition.
IMDEX LIMITED, HORIZON MUD COMPANY INC., AES DRILLING FLUIDS LLC, MEDSERV PLC, BAKER HUGHES a GE CO., SCHLUMBERGER LIMITED, and NEWPARK RESOURCES INC, among others.
Report offers the latest trends, growth prospects, industry competitiveness, major players, value chain, market sizing and forecast to 2023
Reasons to Purchase This Report
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
Identifying the additive type that is expected to dominate the market
Identifying the product type that is expected to dominate the market
Identify the latest developments, market share, and strategies employed by the major market players.
3 months analyst support along with the Market Estimate sheet (in Excel)
1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness – Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
3.3 Regulations & Policies
3.4 Raw Materials Trends
3.5 Technology Snapshot
4. Market Dynamics
4.1.1 Low Breakeven Price and High Crude Oil Price
4.1.2 Increasing Demand for Longer Lateral Length
4.1.3 Continuous Growth in Demand from Permian Basin
4.2.1 High DUC Well Count
4.2.2 Drilling Fluid Challenges
4.3.1 Re-emergence of Austin Chalk
4.3.2 Increasing Exploitation of Unconventional Reserves
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Product
5.1.1 Oil-based Drilling Fluid
5.1.2 Synthetic-based Drilling Fluid
5.1.3 Water-based Drilling Fluid
5.2 By Basin
5.2.2 Eagle Ford
5.2.6 Other Basins
5.3 By Additive Type
5.3.1 Protective chemicals
5.3.2 Fluid Viscosifiers
5.3.3 Weighting Agents
5.3.4 Wetting Agents
5.3.5 Lost circulation materials
5.3.7 Rheology Modifiers
5.3.9 Alkalinity and pH Control Materials
5.3.10 Shale Stabilizers
5.3.11 Other Additive Types (including Defoamers)
6. Competitive Landscape
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**
6.3 Strategies Adopted by Leading Players
7. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
7.1 IMDEX LIMITED
7.2 HORIZON MUD COMPANY INC.
7.3 AES DRILLING FLUIDS LLC
7.4 MEDSERV PLC
7.5 BAKER HUGHES a GE CO.
7.6 SCHLUMBERGER LIMITED
7.7 NEWPARK RESOURCES INC.
7.8 WEATHERFORD INTERNATIONAL PLC
7.9 NATIONAL-OILWELL VARCO INC.
7.10 FRANCIS DRILLING FLUIDS LTD
7.11 OLEON AMERICAS INC. (AVRIL GROUP)
7.12 Q’MAX SOLUTIONS INC.
7.13 UNIQUE DRILLING FLUIDS INC.
7.14 SUNWEST FLUIDS LLC
7.15 MCADA DRILLING FLUIDS
7.16 GEO DRILLING FLUIDS INC.
7.17 CES ENERGY SOLUTIONS CORP.