Global Fluid Loss Additives Market - 2022-2029

Global Fluid Loss Additives Market - 2022-2029

Market Overview

Fluid loss additives market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 3.5% during the forecast period (2022-2029).

Oilfield production and maintenance services often require the usage of drilling muds. When the drilling mud is injected into the ground under high pressure, it comes into contact with porous rock formation and can seep into it, thereby leading to fluid loss. It can lead to widespread environmental contamination and increase drilling and maintenance costs. Fluid loss additives are added to the drilling mud to prevent permeation into the rock surface.

Various operational factors such as density of the drilling mud, the porosity of the rock surface and speed of drilling determine the quantity of fluid loss additives to be used. Using fluid loss additives prevents water leakage and the formation of a filter cake in the oil well bore. A filter cake is a dehydrated slurry that causes a blockage and requires expensive remedial treatment. Fluid loss additives can be natural, synthetic or synthetically modified depending upon the requirement of the specific application. Fluid loss additives exhibit high thermal and chemical resistance, making them suitable for high-temperature drilling environments.

Market Dynamics

The fluid loss additives demand is mainly driven by the increasing global energy demand. The environmental impact of fluid loss additives is a key factor in limiting the growth of this market.

Increasing global energy demand

Global energy demand has increased rapidly in the last decade. Rapid industrialization and economic development have increased global energy demand. Modern lifestyles involve the extensive use of technology and are, therefore, vastly more energy-dense. Despite the advent of renewable energy sources such as wind and solar, oil and gas remain the mainstay of global energy sources. Transportation and logistics depend wholly on oil and gas as an energy source. The share of alternative technologies such as battery electric vehicles and hydrogen fuel cells is absolutely minuscule.

Given the growing energy demand, companies are struggling to raise oil production. Output has plateaued in many countries across the middle east. Companies are looking to survey and exploit new and unconventional sources of oil and gas. For example, three major offshore oilfields were discovered in Guyana in South America, with estimated reserves of 11 billion barrels of crude oil. The commercial exploitation of these reserves is expected to begin in 2022.

Due to the large demand for oil and gas from countries in Asia-Pacific, such as India and China, oilfields in the middle east do not have any spare capacity for expansion. Similarly, oilfields in Russia and the North Sea mostly fulfill the energy demands of Europe. Venezuela, a major South American oil producer and Iran, a major middle eastern oil producer, are both currently under international sanctions, which prevent their oil from being shipped to many international customers.

Therefore, oilfields in Canada, U.S. and the Gulf of Mexico are being reconfigured to raise oil production to meet growing global demand. Fluid loss additives are used in various oil well drilling operations. The growing global energy demand will be a key driver for the growth of the global fluid loss additives market.

Environmental impact of fluid loss additives

Oil well operations are extremely degrading to the local environment. Fluid loss additives are generally made from synthetic branch-chained polymers, making them have high thermal stability and the ability to withstand degradation. However, these same properties make them non-bio-degradable. Fluid loss additives are used for various commercial oil well drilling applications. With surging global energy demand, commercial well drilling operations have increased significantly, including using fluid loss additives.

Fluid-loss additives seep into the groundwater and may get into the drinking water supplies of local communities. Although the long-term effects of fluid loss additives on human health are not yet clear, they are regarded as extremely toxic and have carcinogenic effects. Indigenous communities across North America are protesting commercial oil well drilling on their lands and using environmentally harmful products such as fluid loss additives. The environmental impact of fluid loss additives will present a major challenge for the growth of the global market.

COVID-19 impact analysis

The global fluid loss additives market was majorly impacted in 2020 due to the COVID-19 pandemic. Global governments imposed lockdowns along with other movement restrictions, which caused a precipitous decline in the usage of transportation. Global oil demand decreased significantly and oil prices crashed to below US$ 40 a barrel.

The crash in global oil prices and a severe reduction in demand severely affected the revenues of various oil companies. Many non-conventional oilfields had to cease operations since production became unfeasible due to low oil prices. It led to a massive reduction in demand for oilfield services, reducing demand for fluid loss additives.

With the pandemic situation under control in most countries globally, by the end of 2020, many restrictions were lifted and life slowly began to return to normalcy. The global energy demand also started recovering significantly. Although 2021 witnessed the rise of the second pandemic wave, many countries did not impose total restrictions. Global energy demand is expected to return to pre-pandemic levels by 2022 and is expected to improve demand for fluid loss additives due to the rise in commercial oil well drilling activities.

The pandemic has also hampered the production of fluid loss additives due to global supply chain problems, creating shortages of raw materials. These shortages are expected to be resolved and production will return to normalcy by early 2022. Despite the challenging period of the pandemic, given the rising global energy demand, the long-term outlook for the global fluid loss additives market is positive. The demand for fluid loss additives remains strong and is expected to grow gradually in the coming years.

Segment Analysis

The global fluid loss additives market is segmented into type, application and region. The fluid loss additives market by type is further segmented into synthetically modified natural, synthetic and natural additives. Synthetically modified natural additives are leading within this segmentation.

Synthetically modified natural fluid loss additives have enhanced performance characteristics, enabling them to perform under extreme temperature and pressure conditions without degradation. Given the more non-conventional nature of modern oilfields and exploration practices, using synthetically modified natural fluid loss additives is becoming increasingly popular.

Geographical Analysis

North America is expected to have a leading share in the global fluid loss additives market. It is an advanced industrialized region and a major global oil and gas production center. Oil production in North America occurs in the tar sand oilfields of Canada, fracking and conventional oilfields of U.S. and in the offshore oilfields of the Gulf of Mexico.

Many globally reputed oilfield service companies such as Halliburton and Schlumberger Limited are headquartered in U.S. and Canada. Due to the non-conventional nature of the oilfields in North America, the usage of fluid loss additives is required during commercial oil well drilling operations. Fluid loss additives are also used during routine maintenance operations such as slacklining, pumping and wire lining.

The U.S. government has drafted rules to increase the production of shale oil and gas to reduce dependence on imports and improve the country's energy security. Mexico also outlines plans to increase geological exploration for new oilfields in the Gulf of Mexico. Canada is increasing oil and gas production, intending to increase liquified natural gas (LNG) exports. North America will continue to have the largest market share in the global fluid loss additives market in the coming years.

Competitive Landscape

The global fluid loss additives market is moderately competitive since a wide range of fluid loss additive formulations cater to various oilfield applications such as drilling, cementing and completion. Some of the major players in the global fluid loss additives market contributing to growth are Schlumberger Limited, Halliburton, Chevron Phillips Chemical Company LLC, BASF SE, Nouryon, Clariant, Kemira, Solvay and Aubin Group and Newpark Resources Inc. The main players in the global fluid loss additives market adopt several growth strategies such as launching new formulations, improving existing formulations, production capacity expansion, joint ventures and collaborations, thereby contributing to the growth of the global industry.

Schlumberger Limited

Overview: Schlumberger Limited is a multinational company that specializes in oilfield services. The various services offered by the company include oil well drilling, geological prospecting, well construction, formation evaluation and completion services. The company has a global presence with offices and operations in more than 120 countries. Schlumberger was established in 1926 by Conrad and Marcel Schlumberger. The company's headquarters are in Paris, France and Houston, Texas, U.S.

Product Portfolio

VeraVis is a fluid loss additive from Schlumberger's wide range of additives for oilfield applications. VeraVis is a synthetic branched-chain polymer-based fluid loss additive for high-temperature oil well drilling water-based fluids. The additive ensures optimal drilling and extends operations in wells with bottom hole temperatures exceeding 150℃. The additive is compatible with almost all types of oilfield brines. Industrial protective equipment is necessary for handling this additive since it exhibits high toxicity. The additive is produced in powder form, is white in color, and is available in packaging of 10 kg bags.

Key Developments:

In March 2022, Schlumberger Limited suspended its oilfield services and technology offerings in Russia due to the ongoing war in Ukraine. The company provided its entire range of oilfield services to Russian oil companies in the development and exploitation of oil reserves in the Arctic as well as existing Russian oilfields. The exit of Schlumberger from the Russian market is expected to complicate plans for the exploration and exploitation of new oilfields in the country.

Why Purchase the Report?
• Visualize the composition of the fluid loss additives market segmentation by the type, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the fluid loss additives market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global fluid loss additives market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the critical product of all major market players

The global fluid loss additives market report would provide approximately 51 market data tables, 48 figures and 200 pages.

Target Audience 2022
• Fluid loss additives manufacturers
• Oilfield service providers
• Oil and gas companies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals