Clear Brine Fluids Market is Expected to Reach $1.3 Billion by 2027

According to a new report published by Allied Market Research, titled, Clear Brine Fluids Market By Product Type And End User: Global Opportunity Analysis And Industry Forecast, 2020-2027," 

The global clear brine fluids market size was valued at $1.0 billion in 2019, and is projected to reach $1.3 billion by 2027, growing at a CAGR of 3.6% from 2020 to 2027.

Clear brine fluids are salt solutions of halides and formate that are used in various operations in the upstream oil & gas industry. These operations include drilling, completion, and workover. In addition, clear brine fluids can be formulated to function as clay and shale inhibitors, thus minimizing formation damage and increasing life of an oil well. 

Clear brine fluids have become a critical material in the upstream oil & gas industry and are used by major oil & gas operators such as BP, Apache, ConocoPhillips, and ExxonMobil. These fluids are available in various density ranges and crystallization temperature to suit conditions inside an oil well. Global demand for crude oil and natural gas is expected to remain steady during the forecast period. Major crude oil products such as petrol and diesel are still primary source of fuel in the transportation sector. In addition, petroleum feedstock is used in the petrochemical industry to produce plastics and synthetic fibers. This is expected to drive oil & gas operators to explore new oil & gas fields as well as enhance operations in old oil rigs. There are many such upstream projects that make use of drilling fluids, completion fluids, and workover fluids, which, in turn, drives the demand for clear brine fluids during the forecast period.  All the aforementioned factors propel the market growth, thus increasing the clear brine fluids market size. However, increase in reliance on renewable energy sources has hampered the global oil & gas industry, which hampers growth of the global clear brine fluids market. An effort to reduce greenhouse emissions has forced countries around the world to shift toward solar, wind, and tidal energy. These alternatives are clean and are becoming increasingly affordable. In addition, most countries presently import their crude oil and natural gas, which adds to their import expenditure. This reliance is a threat to their energy security and moving toward renewable energy will increase energy security. This factor is expected to act as a restraint for the global clear brine fluids market during the forecast period. On the contrary, there are other non-conventional natural gases such as shale gas and coalbed methane that could offer fresh opportunities for drilling fluids. Hence, investments in this domain are anticipated to benefit the global clear brine fluids market during the forecast period. 

The global clear brine fluids market is segmented on the basis of product type, end user, and region. By product type, the global clear brine fluids market is segmented into potassium chloride, calcium chloride, calcium bromide, potassium formate, cesium formate, and others. Potassium chloride held the largest revenue market share in the global clear brine fluids market in 2019. It is also projected to be the fastest growing segment, growing at a CAGR of 4.3% during the forecast period. Potassium chloride clear brine fluids are used to formulate solid-free drill-in, workover, and completion fluids. By end user, the market is divided into onshore oil & gas production and offshore oil & gas production. Onshore oil & gas production segment accounted for the largest revenue share in the global clear brine fluids market, as more than 70% of crude oil production is from onshore oilfields. The offshore oil & gas production segment is the fastest growing segment at a CAGR of 4.1%.Offshore oil & gas exploration and production increases the overall supply of oil & natural gas, compared to onshore production.

Region wise, the global clear brine fluids market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, LAMEA accounts for the largest share of the clear brine fluids market, followed by North America and Asia-Pacific. 

The major companies profiled in this report include Albemarle Corporation, Clements Fluids, Egyptian Mud Engineering & Chemicals Company, Halliburton, ICL Group Ltd., Lanxess AG, Schlumberger Ltd., Sinomine Specialty Fluids, Tetra Technologies, and Zirax Ltd. Supply agreements between clear brine fluids producers and major upstream oil & gas operators is a key trend visible in the global clear brine fluids market. For instance, in 2019, Sinomine Specialty signed a supply agreement with Equinor for supply of Cesium drilling and completion fluids for Equinor’s operations on the Norwegian Continental Shelf.

Key findings of the study

• Asia-Pacific clear brine fluids market is projected to grow at the highest CAGR of around 4.6%, in terms of revenue, during the forecast period.
• By product type, the potassium chloride segment accounted for the largest clear brine fluids market share in 2019
• On the basis of end user, the onshore segment garnered the largest market  share in 2019.

Impact Of Covid-19 On The Global Clear Brine Fluids Market

• Even before the COVID-19 pandemic, the global oil & gas industry was facing a massive disruption.
• Increase in commercial viability of renewable energy led to a decline in demand for crude oil and its related products.
• The global clear brine fluids market was already under strain prior to the pandemic.
• The COVID-19 pandemic only amplified this turmoil by drastically reducing consumption of gasoline and jet fuel, as lockdown in countries such as the U.S., Germany, India, and China reduced air traffic and vehicle movement. 
• According to Haynes and Boone, an international corporate law firm based in Texas, 46 exploration and production companies and 61 oil-field service companies filed for Chapter 11 bankruptcy in 2020.