Onshore Drilling Fluids Market Trends

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

• Adverse Effect on Environment- extracting oil and gas have a negative impact on the environment. The oil drilling causes interference of migratory pathways, it destroys the habitats of animal, plants, and humans as well. Blowouts, pipeline leaks or breakdowns, and shipwrecks can all result in oil spills. Ecosystems are seriously threatened by these spills. Moreover, oil and gas operations have the potential to degrade the clean air and water that polar bears, whales, walruses, and people. In addition to this, the oil drilling spews dangerous chemicals into the ocean and dumps tonnes of harmful pollutants into the air.
• Increased Risks During the Drilling Processes
• Fluctuation in the Price of Crude Oil and End Products