Asia Pacific Drilling Fluids Market - Forecasts from 2023 to 2028

The Asia Pacific drilling fluids market is projected to grow at a CAGR of 6.73% to reach US$2.746 billion in 2028 from US$1.741 billion in 2021.

Drilling fluids are specially formulated fluids used in drilling operations as they serve multiple purposes during drilling, including facilitating the drilling process, cooling and lubricating the drill bit, removing cuttings from the wellbore, and maintaining wellbore stability. Drilling fluids are typically a mixture of water or oil-based fluids, along with various additives and chemicals, and are used in the oil & gas and mining industry for safe and efficient drilling operations. Increasing exploration and production activities in the oil & gas and mining industry in the Asia-Pacific region is expected to boost the demand for drilling fluids, thereby fostering their market growth.

Rising oil and gas production will accelerate the growth of the drilling fluids market in the Asia-Pacific region.

The Asia-Pacific region is rich in diverse geological formations, including both conventional and unconventional oil and gas reservoirs. Exploration and production activities have intensified as the demand for oil and gas continues to rise. Drilling fluids are a crucial component in the drilling process for oil and gas wells as they enable the efficient drilling of wells in various geological formations, ensuring safe and successful extraction. Drilling fluids assist in cooling and lubricating the drill bit and the drilling assembly, reducing friction and heat generated during drilling. This not only enhances the lifespan of the equipment but also improves drilling efficiency and productivity. The growing production of oil & gas in the Asia Pacific is propelling the demand for drilling fluids. In 2022, the Oil and Natural Gas Corporation (ONGC) stated that India's crude oil production would increase by 11% and natural gas output by 25% after the discoveries in western and eastern offshore. In 2019, the Chinese government raised capital of $77 billion to increase the production of oil, and the goal was to raise domestic production by 50%, which was more than 2 million barrels per day over the next five years.

The Asia Pacific drilling fluids market will witness robust demand during the forecast period.

The mining industry involves the extraction of various minerals and ores from the Earth's crust, and drilling is a fundamental process in mining operations. Drilling fluids are extensively used in mining to enable efficient and productive drilling of boreholes for exploration and extraction purposes. Drilling fluids are essential in open-pit and underground mining as they help maintain borehole stability, preventing collapses and ensuring safe working conditions for miners. Drilling fluids assist in the lubrication and cooling of drilling equipment, reducing wear and tear and enhancing drilling efficiency. The expanding mining projects in the Asia-Pacific region accelerate the demand for drilling fluids. According to the Ministry of Statistics and Programme Implementation (MOSPI) in 2022, India's mining and quarrying sector's index of mineral output for December 2022 was 107.4, which is 9.8% more than the level for the same month in the previous year. In 2023, the Ministry of Economy, Trade, and Industry of Tokyo announced that it would provide subsidies for up to half the cost of mine development projects of important minerals by Japanese companies and provided funds of 105.8 billion yen ($788 million) to support mining. This demonstrates that drilling fluids will have a great demand in the future.

Products:

• HTHP Drilling Fluids Viscosifier ADDEZ 150: Such product by Sino-Holding Chemicals Co., Ltd. is an oil-based drilling fluid that can be used in diesel, mineral oil, alpha olefins, and vegetable oil extraction.
• Hipergel/G-500S mud system: This ultra-high temperature drilling fluid is provided by TELNITE Co. Ltd and can be used for drilling deeper than 6,000m with a temperature of 210 degrees Celsius or more.
• AMC TORQUE GUARD™: This product by Imdex Limited uses sophisticated technology to improve the lubricating qualities of drilling fluids through advanced adhesion and film-forming characteristics. This is a high-perform lubricant specifically designed to reduce the coefficient of friction of most water-based drilling fluid systems.

Market Segmentation:

By Fluid Type

• Water-Based
• Oil-Based
• Others

By Application

• On-Shore Drilling
• Off-Shore Drilling

By End-Users

• Oil & Gas
• Mining

By Country

• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others