Global Fracking Chemicals And Fluids Market by Well Type (Horizontal/Vertical Well) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

Global fracking chemicals and fluids market was worth USD 23.98 Billion in 2016. It is expected to grow at a 10.3% CAGR from 2017-2025. Market growth is expected to be driven by the growing energy demand from the expanding population.

To make the desired mixture of fracking fluid, chemicals are added to water and/or sand. One fracturing operation can use approximately 40,000 gallons of chemicals. A typical fracturing operation requires between 4 and 12 additives. You can use various additives such as sodium chloride and ethylene glycol.

Volume of U.S. fracking chemicals and fluids market by product, 2014-2025 (Kilotons).

The U.S. fracking chemicals market was 1,467.0 kilotons. This is expected to increase significantly during the forecast period. Due to the increasing industrialization of the region, the demand for energy has increased. This is expected to drive the market in the region.

The majority of fracturing fluids contain proppant, water, and chemical additives. As per your requirements, you can add other compressed gases, such as carbon dioxide or nitrogen, and gels to the mixture. Many proppants, including silica and bauxite as well as resin-coated and ceramic sands and sands are added to the mixture depending on the grain strength and permeability.

The water characteristics, well conditions, and desired fracturing type will all affect the fracking chemicals that are used. You can use a mixture that is water-based, oil-based, synthetic based, or foam-based. To allow the drill to move through the wells easily, the fluids are injected at high velocity into the wells. Fracking fluids are characterized by their pH, viscosity, and rheological properties.

The market is investing in R&D and aiming to develop environment-friendly fracking chemicals. The industry is expected to grow through the development of new products, including non-toxic drilling liquids and foams that can be used to replace toxic oil-based fluid (OBF), which can be difficult to remove from the hole.

Product Insights

Mixtures of fracturing chemicals and additives are made according to the needs of the operation. To allow fluid backflow, additives such as enzymes and antioxidants are added to drilling. The oxidizers or enzymes reduce the gelling effect, which in turn decreases the viscosity.

WBF will see the fastest growth with an estimated CAGR 9.2% over the next 8 years. They are the most commonly used product in drilling wells. WBF can be pumped at higher rates to achieve narrow fractures. They are viscous and have low proppant concentrations. Complex fractures can be achieved thanks to WBF's many properties, including high fluid efficiency, low proppant concentration and high pumping rate.

WBF can be made up of freshwater, salt, formate or saturated brine. WBF demand is expected to rise due to growing concern about the environmental impact of oil and gas operations. OBF are not used in large quantities in the hydraulic drilling industry due to their negative impact on the environment from water discharge.

The way that pollutants are distributed throughout the environment has an impact on how they affect the environment. OBF and cuttings can form piles of mud or cuttings when they are submerged in water. High oil levels can negatively impact the sub-sea fauna, flora and surrounding ecology. OBF can decompose to toxic sulfides, which may lead to total elimination of marine organisms.

OBF was responsible for more than 25% of the total market in 2016. OBF was responsible for over 25% of the overall market in 2016. SBF are less toxic and more environmentally friendly. They also have high drilling performance. SBF are also biodegradable, which is a benefit over OBF. Market growth is expected to be driven by the various properties of SBF, including low bioaccumulation and low toxicity.

Well Type Insights

Due to the large surface that horizontal drilling can cover, the trend has been to shift from vertical to horizontal drilling. Horizontal wells allow drillers to access a greater area and extract oil from a reservoir at much slower rates. Vertical wells, on the other hand, extract oil quickly through shorter boreholes. The flow geometry of horizontal wells along the long drain reduces heterogeneous influences, which in turn increases total production.

In 2016, more than 76% of the market was accounted for by horizontal wells. Horizontal wells can be accessed to oil and gas accumulations in large fields and by-passed or isolated gas. This permits the extraction of large quantities of natural gas. Horizontal wells allow for more energy to be harnessed with fewer wells. This makes them more productive and more efficient than vertical wells. Horizontal wells have many benefits, but drilling them is costly and complicated.

Although horizontal wells are more expensive than vertical wells, the many benefits of horizontal wells far outweigh their cost. Vertical wells are inefficient because of complex well formations that pose a risk of producing immature gas and water, as well as a narrow oil column. Horizontal wells are the best option in such situations, as they can extract energy with minimal risk.

Vertically drilled wells only allow access to natural gas at the well's immediate end. Because they are drilled in one direction, vertical wells don't require directional boring. Vertical wells are less costly and more complicated than horizontal wells. Vertical drilling is no longer possible due to recent developments in directional drilling technology.

Function Insights

Fracking chemicals can be used for many purposes, including carrying the proppant to desired formations, improving gel strength, providing lubrication, and increasing the size of the fractures. Market growth is expected to be driven by the rising demand for fracturing chemical and fluids from energy-intensive industries. Gelling agent is used to thicken water, allowing injection of high-viscosity fracturing chemical. This allows fractures to expand significantly.

Volume of global fracking chemicals and fluids market by function, 2016, (%)

The market faces a major challenge to keep up with rising demand for production solutions that can increase production in extreme conditions like extended reach wells and high pressure. Cross-linkers and breakers are used to address this problem. They keep the fracking fluid stable at high temperatures in terms of viscosity and gelling ability.

The market share of friction reducer was 23.0% in 2016. Buffers can be used to maintain fluid pH values even under extreme conditions like high pressure and temperature. Clay control agents react with clays in rocks and formations by sodium-potassium exchange and help stabilize clay in shale structures.

Biocides are used to kill bacteria in water that can lead to the spoilage of finished products. Because of their natural starch and gum content, biocides are used a lot in WBF. Biocides, also known as bactericides are used to control slime-forming bacteria, iron-oxidizing bacteria, and sulfate reducing bacteria in recovery fluids.

Regional Insights

North America was responsible for more than 83% of 2016's total market volume. High demand for fracking chemicals is a result of the highly developed drilling industry in the region. The U.S., in particular, has a strong drilling and exploration industry that has a large share of the global industry.

The Asia Pacific region is expected to grow at a CAGR of 13.8% in revenue over the next eight year. The market will continue to grow due to rising energy consumption and increasing demand. The majority of E&P oil and gas activities in the world are currently centered in China and South Korea.

The North Sea deep water discovery is expected to increase Europe's oilfield production. This will drive Europe's fracking chemicals demand for the next eight years. The fracturing chemicals industry will have new opportunities in the near future due to significant oilfield development in unconventional and off-shore reserves, as well as the rapid deployment of mud cap drilling technique in this region.

Over the next eight year, offshore E&P will be driven by developments in offshore activities like the increase in oil production in the Middle East and Africa regions. Offshore oil and gas production will also be driven by factors such as the revival of abandoned oil wells located in the Persian Gulf.

Market Share in Fracking Chemicals and Fluids

With a large number of players, the global fracturing chemicals industry is highly competitive. Baker Hughes Incorporated and Halliburton Company are key industry players. Schlumberger Ltd. BASF SE and E.I. are also important. du Pont de Nemours and Company.

To increase market penetration and meet changing technological demands, Fracking chemical manufacturing companies have formed partnerships, collaborations and joint ventures. Aker Solutions, a Norwegian oil service company, recently signed an agreement to purchase Reinertsen. Reinertsen is an oil services provider. Diverse companies also invest heavily in R&D to create new products that are more environmentally friendly.

To expand their product range, established players such as Halliburton Company and Cargill Inc. have begun to produce bio-based drill fluids. Major players such as BASF SE, Schlumberger and Halliburton Company have merged their operations and are now involved in the whole value chain for fracking chemicals including manufacturing, distribution, and end-use.

For consistent product supply, buyers and manufacturers enter into long-term contracts with distributors. New entrants to the industry will face stiff government regulations about the negative environmental impact of chemical use and disposal. Industry participants have access to lucrative opportunities thanks to technological advancements that modify fluid rheology for effective extraction in various formations.

The report covers segments

This report predicts revenue growth at the global, regional and country levels. It also provides analysis on industry trends in each sub-segment from 2014 through 2025. Grand View Research has divided the global fluid and fracking chemicals market based on product, well type and function.

• Product Outlook (Volume of Kilotons; Revenues, USD Millions, 2014-2025)

  • Fluids based on water

  • Fluids containing oil

  • Fluids based on synthetic chemicals

  • Fluids containing foam

• Well Type Outlook (Volume of Kilotons; Revenues, USD Million, 2014-2025)

  • Horizontal well

  • Vertical well

• Function Outlook (Volume of Kilotons; Revenues, USD Millions, 2014-2025)

  • Friction Reducer

  • Clay control agent

  • Gelling agent

  • Cross-linkers

  • Breakers

  • Other

• Regional Outlook (Volume of Kilotons; Revenues, USD Millions, 2014-2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Italy

    • UK

    • Poland

    • Russia

  • Asia Pacific

    • China

    • Indonesia

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Algeria

    • South Africa

These are the most frequently asked questions about this report

b. Global fracking chemicals and liquids market was valued at USD 32.11 Billion in 2019, and is forecast to grow to USD 35.23 Billion by 2020.

b. Global fracking chemicals and liquids market is expected grow at a compound annual rate of 10.3% between 2017-2025, to reach USD 56.60 billion in 2025.

b. With a market share of 84.9%, North America was the dominant country in fracking chemicals & fluids in 2019, This can be attributed to the well-established drilling and exploration industry.

b. Baker Hughes Incorporated and Halliburton Company are key players in the fracking chemicals market. Schlumberger Ltd. and BASF SE are also important players. du Pont de Nemours and Company.

b. Market growth is driven by the growing energy demand owing to increasing population and the shift towards horizontal drilling.

Up Market Research published a new report titled “Fracking Chemicals And Fluids Market research report which is segmented by Well Type (Horizontal/Vertical Well), By Players/Companies Halliburton Company, Schlumberger Ltd, Baker Hughes Incorporated, EI du Pont de Nemours and Company, BASF SE”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Fracking Chemicals And Fluids Market Report Segments:

The market is segmented by Well Type (Horizontal/Vertical Well).

Fracking Chemicals And Fluids Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Fracking Chemicals And Fluids Market

Overview of the regional outlook of the Fracking Chemicals And Fluids Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Fracking Chemicals And Fluids Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Fracking Chemicals And Fluids Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Horizontal/Vertical Well

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Fracking Chemicals And Fluids Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Fracking Chemicals And Fluids Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.