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Nanotechnology growing drilling, completion fluids market until 2020 – Technavio

Synthetic drilling and completion fluids is expected to grow USD $2.40 billion by the end of 2020, a 6% CAGR

2020

Nanotechnology

The global drilling and completion fluids market is expected to reach USD$16.65 billion by 2020, growing at a compound annual growth rate (CAGR) of approximately 7 per cent, according to the latest market study released by Technavio.

This research report titled ‘Global Drilling and Completion Fluids Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends.

The vendors analyzed in this report are selected based on the importance of the products they offer. Through analysis, the report also enlists certain nascent areas in the market.

With a focus on these areas, vendors can take accurate business decisions and also capture and sustain a significant share in the market.

One of the most impactful scientific inventions of the past century has to include the introduction of nanotechnology.

The use of nanotechnology in the field of electronics and material science has revolutionized the way people perceive things.

The oil and gas industry, especially the drilling and completion segment, has significant potential to be unlocked by the utilization of nanotechnology.

Nano-sized entities of effective type and in sufficient amounts can combat performance-related challenges faced by the industry and help improve properties when incorporated in drilling and completion fluids.

Nanoparticles are expected to provide stability to drilling fluids in different pressure and temperature conditions, block or escalate formation porosity, reduce friction, and provide additional functionalities.

One of the largest segments of application of this nanotechnology is the drilling of the shale gas formations. Specially designed nanoparticles have been used to plug the nano-sized shale pores, thus reducing the pressure transmission in the formation.

Technavio’s energy analysts categorize the global drilling and completion fluids market into three major segments by technology.

They are:

  • Water-based
  • Oil-based
  • Synthetic

Global drilling and completion fluids market by water-based fluids

In terms of revenue, the water-based drilling and completion fluids market is expected to reach USD 10.34 billion by the end of 2020 at a CAGR of above 7 per cent.

Based on the trajectory of the water-based drilling and completion fluids during the forecast period, the timelines have been divided into two distinct periods. The first phase begins with the base year and goes on till 2017 fiscal and the other phase from 2018 to end of 2020.

In the first phase, the water-based fluids segment is expected to have a slower growth rate mainly due to the low crude oil and ancillary industry prices.

Due to this factor, the market will likely grow at a pace of almost 6 per cent in 2016 to earn revenue of USD 7.71 billion.

Similarly, in the next fiscal year the market is estimated to grow at almost 6.41 per cent. The market revenue of this particular segment is projected to reach USD 8.20 billion by the end 2017 fiscal.

During the second phase, the market will likely see higher growth rates. As a result, the water-based drilling and completion fluids market is projected to see a growth rate of almost 7.71 per cent in 2018 to earn a revenue of almost USD 8.81 billion.

“The main driver for this spur in the growth rate is the return of investment sentiments to the upstream sector and spur in the number of new wells drilled. This is expected to take the market revenues to USD 9.56 billion by the end of 2019,” said Thanikachalam Chandrasekaran, a lead oil and gas research analyst from Technavio.

Global drilling and completion fluids market by oil-based fluids

The oil-based fluids segment for the oil-based drilling and completion fluids is projected to reach USD 3.99 billion by the end of 2020 at a CAGR of almost 6 per cent.

This segment can be divided into two distinct phases based on the global crude oil prices. The first phase begins in 2015 and continues until 2017; during this tenure, the market is expected to see a slower growth rate.

The other phase begins in 2018 and continues till the end of 2020. During this tenure, the segment is expected to see higher growth rate mainly due to the recovery of global energy prices.

Technavio analysts noticed that the growth of the market is slightly slower than the counterparts.

“The main reason for this lower growth rate can be attributed to the shift in focus of the market to create of an environmentally sustainable drilling industry. Although, the use of the oil-based drilling and completion fluids has been established over the years, these fluids have a serious environmental impact. Therefore, the main issue lies with the disposing of the used drilling and completion fluids, which affects the nearby water resources and related ecosystems,” said Thanikachalam.

Global drilling and completion fluids market by synthetic fluids

The market share of this particular segment of the drilling and completion fluids market is the smallest amongst the segments by base fluid types.

The synthetic drilling and completion fluids is expected to grow to almost USD 2.40 billion by the end of 2020 at a CAGR of around 6 per cent during the forecast period.

The first phase of the forecast period, i.e., from the base year till 2017 fiscal, is expected to see slow growth rates due to low crude oil and ancillary industry prices.

With this factor in hindsight, the market is expected to grow at a pace of almost 5.48 per cent to earn revenue of USD 1.91 billion by the end of 2016.

The next phase of the forecast period, i.e. from 2018 to end of the forecast period, the market is expected to see higher growth rate.

The crude oil prices are expected to correct themselves by mid to end 2017 and are expected to reach USD 60/barrel price range by the onset of 2018.

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

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