The market for Clear Brine Fluids is expected to grow at a CAGR of more than 4% during the forecast period.
- Increasing enhanced oil recovery operations to improve the efficiency of oil production accompanied by extensive exploration for locating crude oil reservoirs will stimulate the clear brine fluids market growth.
- The Middle-East and Africa region is estimated to dominate the market with the largest consumption coming from countries like Saudi Arabia and Qatar. However, North America is likely to register the fastest growth rate during the forecast period.
Key Market Trends
Increasing demand from the oil and gas industry
- Clear brine fluids are salt-based solutions that find applications in extracting and drilling operations for the petroleum and gas sector. These fluids also aid in controlling high-temperature and high-pressure in the reservoir during conventional drilling processes and further reducing the damage and hazards. Proliferating the oil and gas sector along with increasing drilling of rigs for gas extraction will significantly contribute to the industry expansion during the forecast period.
- Depleting of easily available natural gas and crude oil sources is forcing energy companies to look for unconventional energy sources, accompanied by increasing adoption of efficient techniques like enhanced oil recovery will further boost the clear brine fluids markets. Industry players are developing energy products from unconventional resources including gas hydrates, coal bed methane, shale gas/oil, and tight gas sands. Clear brine fluids requirement for the exploration and extraction of such energy sources from the reserves will accentuate the volume.
- However, due to COVID-19, the number of oil rigs in operation has reduced in 2020. For example, according to Baker Hughes, the number of oil rigs have fallen from 2,073 in January 2020 to about 1,176 May 2020. This is expected to negatively affect the clear brine fluids market in the current year.
- The raw materials including sodium, calcium, cesium, chlorine, potassium, and bromine are used in the manufacture of multiple types of clear brine fluids. Zinc/calcium bromide and potassium chloride products are estimated to have significant market share. Calcium bromide brine solutions are used for reducing formation damage due to clay swelling and dispersion. While Potassium chloride is used for stabilization of water-sensitive clays from the high pressure developed in the reservoirs.
Middle-East and Africa is expected to dominate the market
Middle East and Africa accounted for a significant share in the clear brine fluids market owing to region being largest producer of crude oil in the world from countries like Saudi Arabia, UAE, Iraq, and Iran. Moreover, Qatar is the fifth-largest gas producer in the world and holds the third largest gas reserves in the world (estimated at 16% of the global total). Nigeria, Angola, Kenya, and Mozambique are the key contributing nations to the African oil and gas sector. However, Africa has witnessed a downward trend in oil and gas industry with players shifting towards geologies offering promising returns with attractive fiscal terms. Until 2019, the oil and gas production was expected grow significantly due to increasing energy import demand from the Asia-Pacific and Europe. Meanwhile, due to collapse of OPEC+ agreement and COVID-19 crisis has given demand shocks for the industry. This is expected to affect the exploration activities in the region in turn effecting the demand for the clear brine fluids. However, as the prices stabilize and exploration and drilling activities resume, the clear brine fluids market of this region is expected to dominate the global market.
The market studied is partially consolidated in nature. Some of the key players in the market include Schlumberger Limited, Halliburton., Ltd, Albemarle Corporation., Ltd., TETRA Technologies, Inc., Clements Fluid, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support