Press Release

GCC Drilling Fluids Market Expected to Grow Based on Expanding Oil & Gas Exploration Activities

The GCC Drilling Fluids Market is projected to grow at a CAGR of 5.9% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growth of the Drilling Fluids market in the GCC region is primarily driven by increased oil and gas exploration activities both onshore and offshore. The GCC region is known for its significant oil and gas reserves, leading to a continuous demand for exploration and production activities. The announcement of new projects of oil & gas exploration in countries like Qatar, Kuwait, Saudi Arabia further contributes to the demand for Drilling Fluids in the region. For instance, in 2022, Kuwait Petroleum announced to increased its crude oil production in line with its 2.81 million barrels-a-day quota under the OPEC+ agreement.

Additionally, expansion of offshore oil & gas fields and the ongoing onshore drilling operations in countries like Saudi Arabia and the UAE are affecting the demand for Drilling Fluids in the forecast years. For instance, Saudi Arabia's Aramco has initiated the development of the Jafurah unconventional gas field, which is projected to commence production operations by 2025.

Furthermore, the growing construction and mining activities in the GCC region require drilling machines, which in turn stimulates the need for Drilling Fluids in the regional market. These activities create additional demand for Drilling Fluids as they rely on drilling machines for project development. And drives the market growth of Drilling Fluids in the GCC region., further states the research report, “GCC Drilling Fluids Market Analysis, 2023.”

Segmentation Analysis

Rising Demand for Oil-Based Drilling Fluids in the GCC Region

Based on the Fluid type segment, the market is further bifurcated into, Water-based, Oil-based and Synthetic-based. In this, oil-based Drilling Fluids holds a dominant share in the GCC Drilling Fluids Market. This is attributed due to the high thermal stability of oil-based fluids which makes them suitable for withstanding extreme temperatures during drilling operations. This characteristic makes them preferable in challenging drilling conditions. In the GCC region, some oil and gas formations contain reactive shales or clay-rich formations that can swell and become unstable when exposed to water-based fluids. To mitigate the risks associated with wellbore instability, oil exploration companies are increasingly using oil-based Drilling Fluids. These fluids minimize the interaction with reactive formations and help maintain wellbore stability.

Moreover, the limited access to water resources and synthetic Drilling Fluids in the GCC region, coupled with the high cost of water treatments, make oil-based Drilling Fluids more cost competitive compared to water or synthetic-based alternatives. This cost advantage further drives the revenue growth of the oil-based segment in the GCC Drilling Fluids Market.

Growing Oil and Gas Industry in the Saudi Arabia Boosts Demand for Drilling Fluids Market

Based on geography the market is classified into the UAE, Saudi Arabia, Bahrain, Kuwait, Bahrain and Oman. Among all, Saudi Arabia's Drilling Fluids Industry is depicting notable market growth in the GCC region due to increased demand for transportation fuels and power generation. Major oilfield projects like Ghawar, Safaniya, Khurais, and Shaybah are set to contribute significantly to the expansion of the oil and gas industry in the country.

Moreover, the rising number of rig counts in Saudi Arabia, combined with the discovery of deepwater metals in the Persian Gulf and the Red Sea, will further drive the demand for Drilling Fluids in the country. These factors create a positive market outlook and provide opportunities for the Drilling Fluids Industry to cater to the growing needs of the oil and gas sector in Saudi Arabia.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (New Park Resources Inc., Drill Chem, Tanjib Holding, Oil chemical Industrial Company, Gumpro Drilling Fluids, NSER corp, Schulmberger, Haliburton, SDF chemical Middle East, Baker Huges ) are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends that have shaped the industry to its current form?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition shaped across various countries, followed by their comparative factorial indexing?
6. How have buying behavior, customer inclination, and expectations from product manufacturers evolved during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?