Clear Brine Fluids Market Size, Share & Growth Report 2031

(MENAFN- Straits Research) Introduction

In various upstream oil and gas processes, clear brine fluids, which are salt solutions of halides and formate, are employed. Drilling, completions, and workovers are a few examples of this work. Clear brine fluids can be created to function as clay and shale inhibitors, preserving the formation and extending the useful life of the oil well.

Market Dynamics Fresh Upstream Initiatives Drive the Global Market

The development of new onshore and offshore wells and field expansion is expected to increase deepwater and ultra-deepwater drilling and completion activities. Many of these projects have either been completed or are currently being constructed. In October 2020, BP Plc in Oman started constructing the onshore Khazzan Phase 2 field. Another such project is Azeri Central East (ACE), which is being worked on in Azerbaijan by BP, SOCAR, Chevron, and other businesses. The well will start producing conventional oil in 2023, with an average gross annual output of 80 Mboed. These developments drive the market for clear brine fluids.

Shale, which is made of sedimentary rocks with fine-grained, is likely to be a rich source of gas and oil. Increased shale gas production has boosted the global demand for clear brine fluids. The market should benefit from the increasing attention paid to other unconventional natural gases during the forecast period. Between 2018 and 2019, natural gas from confirmed shale reservoirs increased from 68% to 71%. Recent shale gas finds are expected to assist the regional market for clear brine fluids and the United States and the Middle East. Shale gas development is anticipated to increase domestic supplies in several Asia-Pacific countries, helping them meet long-term natural gas demand. It should also increase its energy security by allowing them to rely less on foreign sources.

Regional Analysis

LAMEA is the most significant shareholder in the global clear brine fluids market and is anticipated to grow at a CAGR of 4.20% over the projection period. LAMEA countries, including Brazil, Saudi Arabia, the UAE, Venezuela, and African countries, are expected to lead the demand for drilling fluids and completion fluids due to the presence of oilfields and upstream operations. By 2025, production in the region is anticipated to be close to five billion barrels. Therefore, it is estimated that Brazil will significantly contribute to the clear brine fluids market expansion during the forecast year. Brazil, which by 2040 will generate almost 5.2 million barrels per day or 50% of the world's offshore oil, is highlighted by the International Energy Agency (IEA).

North America is anticipated to grow at a CAGR of 3.60%, generating USD 552.39 million over the forecast period. The North America Free Trade Agreement (NAFTA) was replaced by the United States-Mexico-Canada Agreement (USMCA) as the framework for regulating energy trade between the two nations on July 1, 2020. The USMCA is predicted to promote North American energy integration and increase trade between the three countries. Most significantly, it is expected to uphold the energy trade's liberalization, provide investor protection, and establish the framework for upcoming American investments in Mexico's natural gas and oil industries. As oil and gas exploration and production increase, it is therefore projected that the demand for drilling and completion fluids, such as clear brine fluids, will increase.

Key Highlights

• The global clear brine fluids market was valued at USD 1,080.40 million in 2021. It is projected to reach USD 1,524.49 million by 2030, growing at a CAGR of 3.90% during the forecast period (2022-2030).
  
• Based on product type, the global clear brine fluids market is bifurcated into calcium chloride, potassium formate, calcium bromide, sodium formate, potassium chloride, and others. The potassium chloride segment is the highest contributor to the market and is anticipated to grow at a CAGR of 4.60% over the forecast period.
• Based on end-user, the global clear brine fluids market is bifurcated into onshore oil and gas production and offshore oil and gas production. The onshore oil and gas production segment owns the highest market share and is anticipated to grow at a CAGR of 3.80% during the forecast period.
• LAMEA is the most significant shareholder in the global clear brine fluids market and is anticipated to grow at a CAGR of 4.20% over the projection period.