Drilling Fluids & Chemicals Market in the US by Product and Location

As Quoted In Oil & Gas 360

A Recovery in Drilling Activity Will Spur Demand for Drilling Fluids

Oil Drill

US demand for drilling fluids is forecast to increase 11% per year to 1.45 billion gallons in 2021, while demand for drilling fluid additives is forecast to increase 13% per year to $930 million in 2021. Growth will be driven by the recovery in drilling activity following the steep downturn in 2015 and 2016, which resulted from oil benchmark price collapse. Although the rebound in drilling activity and recovery in demand for drilling fluids and additives of drilling fluids will be strong, it is not expected to reach peak levels through 2021. Oil and gas prices are forecast to remain well below the high water marks seen in the past 10 years, limiting further advances.

Key Findings in the Drilling Fluids & Chemicals Study:

Horizontal Drilling Increased the Demand for Drilling Fluids

Prior to the collapse in drilling activity in 2014, drilling fluid demand grew on a per well basis. From 2006 to 2014, the practice of drilling horizontal and unconventional wells spread throughout the US, becoming the most common well type. These wells require more drilling fluids than vertical wells due to the addition of lateral lengths in the wellbore. Additionally, lateral lengths continue to increase as operators test the limits of the technology to retrieve more resources from a single well. Going forward, it is expected that the proportion of horizontal wells and the average total depth will continue to increase.

Drilling Activity Will Shift Toward Economical Regional Markets

As a result of the constraints brought on by the current benchmark price environment, operators are dealing with economical restrictions that significantly limit the potential profitability of certain plays. Operators are faced with breakeven costs that only allow them to pursue resources in the most economical drilling opportunities. Operators seek out plays that have geological advantages or other cost savings opportunities like pre-existing infrastructure. Plays such as the Permian Basin in Texas and the STACK and the SCOOP in Oklahoma, valued for their stacked resources and high IP rates, will garner much of the drilling activity in the years to come given the current price environment.

Technology Is Advancing Drilling Fluids to Water-Based Formulas with Higher Value Additives

As a result of technological progression, drillers have come to favor certain formulations of drilling fluids. Water-based fluids are favored for their lower cost and better environmental profile. Additionally, as horizontal and unconventional drilling continue to increase well complexity and create challenging drilling conditions, drillers will favor higher value additives which are multifunctional and able to work in these environments. Unlike the shift to water-based fluids, which are lower in cost than oil-based or synthetic-based fluids, the constraints of the lower benchmark price market is not expected to prevent a shift to higher value additives in drilling fluids.

Study Coverage

This industry study presents historical demand data (2006, 2011, and 2016) and forecasts for 2021 by product (drilling fluids: water-based, oil-based, synthetic-based; drilling fluid additives: barite, bentonite, shale inhibitors, polymer viscosifiers, lost circulation materials), and location (Texas, Oklahoma, Ohio & Pennsylvania, Gulf of Mexico, Louisiana, New Mexico, North Dakota, Colorado). The study also evaluates company market share and competitive analysis on drilling fluid suppliers including Baker Hughes, Canadian Energy Services, Halliburton, National Oilwell Varco, Newpark Resources, and Schlumberger.

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  1. Drilling Fluids & Chemicals Market in the US by Product and Location

    $4,900.00

    1. 1 EXECUTIVE SUMMARY

      $407.00

      1. Figure 1-1 | Key Trends in the US Market for Drilling Fluids & Chemicals

    2. 2 OVERVIEW

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      1. 2.1 Key Findings

        $85.00

        1. Figure 2-1 | Key Trends in the Drilling Fluids & Chemicals Market

      2. 2.2 Market Volatility

        $302.00

        1. 2.2.1 Drilling Fluids

          $162.00

          1. Figure 2-2 | Drilling Fluids: Demand & Wells Drilled, 2006 - 2016

        2. 2.2.2 Drilling Fluid Additives

          $138.00

          1. Figure 2-3 | Drilling Fluid Additives: Demand & Wells Drilled, 2006 - 2016

      3. 2.3 Drilling Fluid Costs

        $133.00

        1. Figure 2-4 | Average Drilling Fluid Cost, 2006 - 2021

      4. 2.4 Additive Pricing Trends

        $268.00

        1. Table | Selected Drilling Fluid Additives Pricing, 2006 - 2021

      5. 2.5 Oil & Gas Drilling Outlook

        $263.00

        1. Table | Oil & Gas Drilling Indicators, 2006 - 2021

      6. 2.6 Trends in Drilling Technology

        $186.00

      7. 2.7 Environmental & Regulatory Considerations

        $309.00

    3. 3 DRILLING FLUIDS

      $2,157.00

      1. 3.1 Key Findings

        $96.00

        1. Figure 3-1 | Key Trends in the US Drilling Fluids Market

      2. 3.2 Drilling Fluids Demand

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        1. 3.2.1 Drilling Fluid Demand Overview

          $205.00

          1. Table | Drilling Fluids: Demand & Wells Drilled, 2006 - 2021

          2. Figure 3-2 | Drilling Fluids: Demand & Wells Drilled, 2006 - 2021

        2. 3.2.2 Fluid Use Per Well

          $102.00

          1. Figure 3-3 | Average Drilling Fluids Demand per Well, 2006 - 2021

        3. 3.2.3 Regional Demand Trends

          $163.00

          1. Table | Drilling Fluids: Demand by Region, 2006 - 2021

        4. 3.2.4 Demand by Formulation Type

          $205.00

          1. Table | Drilling Fluids: Demand by Fluid Type, 2006 - 2021

          2. Figure 3-4 | Annual Growth Rates for Drilling Fluids Volume Demand by Fluid Type, 2006 - 2016

      3. 3.3 Water-Based Drilling Fluids

        $506.00

        1. 3.3.1 Water-Based Drilling Fluids: Demand Forecast

          $222.00

          1. Table | Water-Based Drilling Fluids: Demand by Location, 2006 - 2021

          2. Figure 3-5 | Water-Based Drilling Fluids: Demand & Drilling Activity, 2006 - 2021

        2. 3.3.2 Water-Based Drilling Fluids: Advantages & Disadvantages

          $107.00

          1. Table | Water-Based Drilling Fluids: Advantages & Disadvantages

        3. 3.3.3 Water-Based Drilling Fluids: High Performance Water-Based Muds

          $86.00

        4. 3.3.4 Water-Based Drilling Fluids: Clear Brine Drilling Fluids

          $88.00

      4. 3.4 Oil-Based Drilling Fluids

        $424.00

        1. 3.4.1 Oil-Based Drilling Fluids: Demand Forecast

          $319.00

          1. Table | Oil-Based Drilling Fluids: Demand by Location, 2006 - 2021

          2. Figure 3-6 | Oil-Based Drilling Fluids: Demand & Drilling Activity, 2006 - 2021

        2. 3.4.2 Oil-Based Drilling Fluids: Advantages & Disadvantages

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          1. Table | Oil-Based Drilling Fluids: Advantages & Disadvantages

      5. 3.5 Synthetic-Based Drilling Fluids

        $451.00

        1. 3.5.1 Synthetic-Based Drilling Fluids: Demand Forecast

          $254.00

          1. Table | Synthetic-Based Drilling Fluids: Demand by Location, 2006 - 2021

          2. Figure 3-7 | Synthetic-Based Drilling Fluids: Demand & Drilling Activity, 2006 - 2021

        2. 3.5.2 Synthetic-Based Drilling Fluids: Advantages & Disadvantages

          $82.00

        3. 3.5.3 Synthetic-Based Drilling Fluids: Use in Offshore Drilling

          $114.00

    4. 4 DRILLING CHEMICALS

      $3,245.00

      1. 4.1 Key Findings

        $97.00

        1. Figure 4-1 | Key Trends in US Drilling Fluid Additives Market

      2. 4.2 Drilling Chemicals Demand

        $252.00

        1. Table | Drilling Fluid Additives: Demand by Product, 2006 - 2021

        2. Figure 4-2 | Drilling Fluid Additives: Demand by Product, 2006 - 2021

      3. 4.3 Barite

        $457.00

        1. 4.3.1 Barite: Demand Forecast

          $314.00

          1. Table | Barite: Demand in Drilling Fluids by Location, 2006 - 2021

          2. Figure 4-3 | Barite: Demand in Drilling Fluids, 2006 - 2021

        2. 4.3.2 Barite: Suppliers

          $142.00

      4. 4.4 Polymer Viscosifiers

        $844.00

        1. 4.4.1 Polymer Viscosifiers: Demand Forecast

          $313.00

          1. Table | Polymer Viscosifiers: Demand in Drilling Fluids by Location, 2006 - 2021

          2. Figure 4-4 | Polymer Viscosifier: Demand in Drilling Fluids, 2006 - 2021

        2. 4.4.2 Polymer Viscosifiers: Xanthan Gum

          $111.00

          1. Table | Xanthan Gum: Demand in Drilling Fluids, 2006 - 2021

        3. 4.4.3 Polymer Viscosifiers: Polyacrylamide

          $146.00

          1. Table | Polyacrylamide Viscosifier: Demand in Drilling Fluids, 2006 - 2021

        4. 4.4.4 Polymer Viscosifiers: Guar Gum

          $131.00

          1. Table | Guar Gum: Demand in Drilling Fluids, 2006 - 2021

        5. 4.4.5 Polymer Viscosifiers: Other Polymers

          $140.00

          1. Table | Other Polymer Viscosifiers: Demand in Drilling Fluids, 2006 - 2021

      5. 4.5 Lost Circulation Materials

        $307.00

        1. Table | Lost Circulation Materials: Demand in Drilling Fluids by Location, 2006 - 2021

        2. Figure 4-5 | Lost Circulation Material: Demand in Drilling Fluids, 2006 - 2021

      6. 4.6 Bentonite

        $372.00

        1. Table | Bentonite: Demand in Drilling Fluids by Location, 2006 - 2021

        2. Figure 4-6 | Bentonite: Demand in Drilling Fluids, 2006 - 2021

      7. 4.7 Shale Inhibitors

        $683.00

        1. Table | Shale Inhibitors: Demand in Drilling Fluids by Location, 2006 - 2021

        2. Figure 4-7 | Shale Inhibitors: Demand in Drilling Fluids, 2006 - 2021

        3. 4.7.1 Shale Inhibitors: Choline Chloride

          $99.00

          1. Table | Choline Chloride: Demand in Drilling Fluids, 2006 - 2021

        4. 4.7.2 Shale Inhibitors: Potassium Chloride

          $115.00

          1. Table | Potassium Chloride: Demand in Drilling Fluids, 2006 - 2021

        5. 4.7.3 Shale Inhibitors: Other Shale Inhibitors

          $143.00

          1. Table | Other Shale Inhibitors: Demand in Drilling Fluids, 2006 - 2021

      8. 4.8 Other Drilling Fluid Additives

        $232.00

        1. Table | Other Additives: Demand in Drilling Fluids, 2006 - 2021

    5. 5 DEMAND BY LOCATION

      $2,766.00

      1. 5.1 Key Findings

        $99.00

        1. Figure 5-1 | Key Trends in Area Markets for Drilling Fluids & Chemicals

      2. 5.2 Drilling Activity by Location

        $95.00

        1. Figure 5-2 | Annual Growth Rate of Wells Drilled by Area, 2016 - 2021

      3. 5.3 Drilling Fluid & Chemical Demand by Location

        $90.00

        1. Figure 5-3 | Drilling Fluid & Chemical Demand by Location, 2016

      4. 5.4 Texas

        $355.00

        1. Table | Texas: Comparision of Unconventional Plays & Conventional Drilling

        2. Table | Texas: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        3. Figure 5-4 | Texas: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      5. 5.5 Oklahoma

        $255.00

        1. Table | Oklahoma: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-5 | Oklahoma: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      6. 5.6 Ohio & Pennsylvania

        $263.00

        1. Table | Ohio & Pennsylvania: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-6 | Ohio & Pennsylvania: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      7. 5.7 Colorado

        $272.00

        1. Table | Colorado: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-7 | Colorado: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      8. 5.8 North Dakota

        $269.00

        1. Table | North Dakota: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-8 | North Dakota: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      9. 5.9 Gulf of Mexico

        $310.00

        1. Table | Gulf of Mexico: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-9 | Gulf of Mexico: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      10. 5.10 Louisiana

        $245.00

        1. Table | Louisiana: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-10 | Louisiana: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      11. 5.11 New Mexico

        $261.00

        1. Table | New Mexico: Demand for Drilling Fluids & Chemicals, 2006 - 2021

        2. Figure 5-11 | New Mexico: Wells Drilled & Drilling Fluids Demand, 2006 - 2021

      12. 5.12 Other Locations

        $252.00

        1. Table | Comparison of Secondary Markets for Drilling Fluids & Chemicals

        2. Table | Other Locations: Demand for Drilling Fluids & Chemicals, 2006 - 2021

    6. 6 INDUSTRY STRUCTURE

      $2,437.00

      1. 6.1 Key Findings

        $212.00

      2. 6.2 Industry Composition

        $396.00

        1. Table | Overview of Supply Chain & Selected Industry Participants

      3. 6.3 Drilling Fluids Market Share

        $846.00

        1. Figure 6-1 | US Drilling Fluids Market Share, 2016

        2. Figure 6-2 | Drilling Fluids & Chemicals: Overall Leading Supplier

        3. Figure 6-3 | Drilling Fluids & Chemicals: Second Leading Supplier

        4. Figure 6-4 | Drilling Fluids & Chemicals: Third Leading Supplier

        5. Figure 6-5 | Drilling Fluids & Chemicals: Fourth Leading Supplier

        6. Figure 6-6 | Drilling Fluids & Chemicals: Fifth Leading Supplier

        7. Figure 6-7 | Drilling Fluids & Chemicals: Sixth Largest Supplier

      4. 6.4 Drilling Chemicals Manufacturing

        $177.00

        1. Table | Drilling Chemical Manufacturers

      5. 6.5 Competitive Strategies

        $405.00

        1. 6.5.1 Drilling Chemical Manufacturers

          $239.00

        2. 6.5.2 Oilfield Service Companies

          $163.00

      6. 6.6 Industry Restructuring

        $246.00

        1. Table | Selected Acquisitions & Divestitures

      7. 6.7 List of Industry Participants

        $153.00

    7. 7 APPENDIX

      $1,177.00

      1. 7.1 Scope

        $214.00

      2. 7.2 Methodology

        $138.00

      3. 7.3 Sources

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      4. 7.4 Related Freedonia Group Studies

        $88.00

      5. 7.5 Definitions

        $262.00

      6. 7.6 Abbreviations

        $82.00

        1. Table | Abbreviations Used in Study

      7. 7.7 Macroeconomic Assumptions

        $295.00

        1. Table | Macroeconomic Indicators, 2006 - 2021

        2. Figure 7-1 | Annual Growth in Real GDP, 2000 - 2016, Compared to 1980 - 2005 Average

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