Onshore Drilling Fluids Market size was valued at USD 3.42 billion in 2024 and is set to exceed USD 7.95 billion by 2037, expanding at over 6.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of onshore drilling fluids is evaluated at USD 3.6 billion.
The growth of the market can be attributed to the rising expansion of oil & gas industry. The latest data suggests that oil and gas industry is one of the largest sector in the world in terms of revenue generation. In 2022, the global oil and gas industry generated around USD 2 trillion.
At a globe level, the demand for gasoline and fuels is rising in a steady pace. This is anticipated to increase the demand of onshore drilling processes. Thus, the huge population involved in the oil and gas industry is expected to increase the adoption rate of onshore drilling fluids. In the oil and natural gas industry of the United States, there are almost 10 million jobs which is contributing to at least 8% of the nation’s Gross Domestic Product (GDP) as per a report published in 2022.
Growth Drivers
High Demand and Consumption of Oil Across the World – Oil is an essential component in varied processes across numerous industries. Also, the rapid industrialization has propelled the high consumption of oil in order to fulfil the needs and demand of recent urbanization. In 2021, the global oil consumption was approximately 94 million barrels per day, a 6% increment from the previous year.
High Utilization of Petroleum and Fuels – As per the reports of U.S. Energy Information Administration, it was calculated that in the year 2020, around 92.2 barrels of petroleum and other liquid fuels were consumed worldwide.
Rising Support by Various Governments – By 2024, Indian government is planning to invest around USD 120 billion in oil and gas industry. USD 60 billion is expected to direct towards exploration and production (E&P) activities, and rest USD 60 billion in natural gas infrastructure.
High Expenditure in Research & Development – World Bank released the global expenditure made in Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of total GDP in 2016.
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.7% |
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Base Year Market Size (2024) |
USD 3.42 billion |
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Forecast Year Market Size (2037) |
USD 7.95 billion |
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Regional Scope |
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Product Type (Water-Based Fluids, Oil-Based Fluids, Synthetic-Based Fluids)
The global onshore drilling fluids market is segmented and analyzed for demand and supply by product type into water-based fluids, oil-based fluids, and synthetic-based fluids. Out of the three types of products, the oil-based fluids segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the high consumption of petroleum-based products across the world. It is estimated that the consumption of petroleum products in India stood up at 195 million tons (MT) in FY21. Moreover, in 2023, China's daily demand, which decreased last year, is likely to increase by around 800,000 barrels per day.
Well Type (HPHT, Conventional)
The global onshore drilling fluids market is also segmented and analyzed for demand and supply by well type into HPHT, and conventional. Amongst these two segments, the conventional segment is expected to garner a significant share by the end of 2037. The segment growth is primarily attributed to the higher number of conventional wells in the world. Canada holds around 10% share of the world's proven oil reserves, which total slightly under 170 billion barrels, placing it in third place overall. Over 97% of the nation's reserves are oil sand deposits in the province of Alberta. Also, a sizeable portion of the country's conventional oil reserves is in the province.
Our in-depth analysis of the global market includes the following segments:
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By Product Type |
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By Well Type |
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North American Market Forecast
The North American onshore drilling fluids market is projected to hold largest revenue share of 43% by 2037. The growth of the market can be expected to owing to the large consumption of petroleum and petroleum products. As per U.S. Energy Information Administration revealed that in 2021, the United States consumed an average of about 19.89 million barrels of petroleum per day or a total of about 7.26 billion barrels of petroleum. Also, the high demand of energy by the American population is another growth factor of the market in the region. In 2021, total U.S. primary energy consumption was equal to about 97 quadrillions Btu, as stated by U.S. Energy Information Administration.
APAC Market Statistics
The Asia Pacific onshore drilling fluids market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2037. Market growth in the region is also expected on the account of rising consumption of oil in the region. Even though Japan's oil consumption has been progressively reducing along with the nation's overall declining total energy use, oil continues to be the major energy source in the country, making up around 40% of its total energy supply. Moreover, Japan is significantly reliant on the importation of crude oil, around 80-90% of the oil is imported from the Middle East. Furthermore, rise in the number of onshore oil wells present in the region and the rising demand for oilfield chemicals are also expected to drive the market growth. In India, there are around 85 oil wells in just Digboi region.
TETRA Technologies has entered into a licensing agreement with KMX Technologies LLC and Hyrec Holdings Company W.L.L. for recycling of produced water for the purpose of beneficial reuse.
Baker Hughes Company has acquired Quest Integrity, a global leader in the development and delivery of technology-enabled asset inspection and reliability management solutions across the pipeline, refining, petrochemical and power generation sectors.
Author Credits: Rajrani Baghel
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