Clear Brine Fluids Market

Market Overview

The global clear brine fluids market was valued at USD 890.57 million in 2021. It is projected to reach USD 1161.99 million by 2030, growing at a CAGR of 3% during the forecast period (2022-2030). 

Clear brine fluids, which are salt solutions of halides and formate, are employed in several upstream oil and gas processes. It is based on chloride, bromide, and formate salts and contains no solid in aqueous solutions. These liquids are offered commercially and come in a variety of densities. Workover, completion, and drilling are some of these operations. Clear brine fluids can be created to function as clay and shale inhibitors, minimizing formation damage and extending the life of an oil well. Major oil and gas companies, including BP, Apache, ConocoPhillips, and ExxonMobil, use clear brine fluids, which have become a crucial component in the upstream oil and gas business.

Market Dynamics

Global Clear Brine Fluids Market Drivers

Fresh Upstream Initiatives

Deepwater and ultra-deepwater drilling and completion activities are anticipated to expand due to new onshore and offshore well development and field extension. Numerous such projects are either finished or in the process of being built. For instance, in Oman, BP Plc began developing the onshore Khazzan Phase 2 field in October 2020.

Another such project is Azeri Central East (ACE), which is being worked on in Azerbaijan by BP, SOCAR, Chevron, and other companies. After going into service in 2023, the well will provide an average gross annual output of 80 Mboed conventional oil. In 460 feet of water, between the Central Azeri and East Azeri platforms, drilling and platform construction are part of the development. These advancements drive the market for clear brine fluids over the forecast period.

Global Clear Brine Fluids Market Restraint

Heightened Attention to Renewable Energy Sources

The entire oil and gas sector uses significant energy and resources, especially upstream operations. It poses severe risks to the ecosystem and could affect it at various levels, including the air, water, and soil. Wastewater, solid waste, and aerosols are produced at all stages of upstream operations, from exploratory activities to drilling and completion. Other effects include worsening the greenhouse effect, water quality deterioration, and groundwater contamination. The oil and gas sector may also contribute to the extinction of species and the destruction of habitats, some of which may be particularly rare. This factor influences renewable energy adoption.

Additionally, solar and wind energy costs have decreased dramatically in the past ten years. It is anticipated that the cost of storing this energy will fall during the projected period, resulting in a drop in gasoline, diesel, and natural gas demand. Europe's oil usage has decreased as a result. Plans to reduce greenhouse gas emissions entail a complete switch to renewable energy. As a result, nations might one day stop producing oil and gas. For instance, France wants to end paying for oil and gas by 2040. Such a development could hamper the expansion of the market for clear brine fluids.

Global Clear Brine Fluids Market Opportunities

Increasing Shale Gas and other Unconventional Natural Gas Output

Natural gas extracted from shale formations is referred to as shale gas. Fine-grained sedimentary rocks called shale are potentially abundant sources of gas and oil. The pores of sedimentary rocks contain it. The global clear brine fluids market has benefited from increased shale gas production. The market is anticipated to profit from the increased focus on other unconventional natural gases over the forecast period.

Natural gas from shale reservoirs that can be proven rose from 68% to 71% between 2018 and 2019. In addition to the United States, recent shale gas discoveries in the Middle East and Asia are anticipated to benefit the regional market for clear brine fluids. Shale gas development is expected to improve domestic supplies in various Asia-Pacific nations, assisting them in meeting long-term natural gas demand. By enabling them to depend less on outside sources, it is also anticipated to improve their energy security.

Regional Analysis

The global clear brine fluids market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

LAMEA Dominates the Global Market

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. Due to the existence of oilfields and upstream operations, LAMEA nations like Brazil, Saudi Arabia, the UAE, Venezuela, and African countries are anticipated to lead the demand for drilling fluids and completion fluids. According to Petrobras, Brazil's pre-salt oil reserves at the Lula oil field in the Santos basins include 16.4 billion barrels of crude oil. The region's production will reach almost five billion barrels in 2025. Therefore, over the forecast period, Brazil is anticipated to contribute considerably to the market's growth for clear brine fluids throughout the projected period. In addition, the International Energy Agency (IEA) emphasizes the importance of Brazil, which would produce around 5.2 million barrels per day, or 50% of the world's offshore oil, by 2040.

North America is anticipated to grow at a CAGR of 3.60%, generating USD 552.39 million over the forecast period. The United States-Mexico-Canada Agreement (USMCA) replaced the North America Free Commerce Agreement (NAFTA) as the framework for governing energy commerce between the two countries on July 2020. The USMCA is anticipated to boost trade between the three nations and strengthen North American energy integration. Most importantly, it is anticipated to maintain the liberalized energy trade, offer investor protection, and lay the groundwork for future American investments in Mexico's natural gas and oil sectors. Therefore, the need for drilling and completion fluids like clear brine fluids is anticipated to rise as oil and gas exploration and production expand.

Europe is expected to grow significantly over the forecast period. The major producers of crude oil in Europe are Germany and the United Kingdom. In Germany, domestic crude oil production is the primary focus of about 51 oilfields. In contrast, as of 2018, Germany purchased more than 85.2 million tonnes of crude oil from 29 nations. Russia, Norway, Libya, and Kazakhstan are major suppliers. Also, there were 10 to 20 billion barrels of oil equivalent (BOE) or more in the UK, including both identified and undiscovered petroleum resources, according to the Oil and Gas Authority (OGA). Therefore, it is anticipated that these wells' future drilling and production will present new chances to expand the clear brine fluids market during the forecast period. In addition, despite reserve additions, the OGA estimates that the UK's proved and probable (2P) reserves as of the end of 2019 are 5.2 billion BOE, somewhat less than in 2018.

It is expected that Asia-Pacific nations, including China, India, Indonesia, and Vietnam, will present a new market potential for clear brine fluids. Demand for domestic oil and gas production in China is anticipated to rise due to rapid infrastructure development. As a result, during the forecast period, there may be an increase in demand for good drilling and completion materials like clear brine fluids. Natural gas and oil reserves that have not yet been produced can be found in the South China Sea, a body of water that both China and Japan claims. In addition, the auctioning of exploration blocks in Rajasthan's Barmer Basin and the offshore Krishna Godavari Basin has increased dramatically, which is also expected to drive market growth over the forecast period.

Segmental Analysis

The global clear brine fluids market is segmented by product type and end-user.

On the Basis of Product Type

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. A dry, crystalline salt called potassium chloride is mainly utilized as a drilling, workover, and completion fluid. When drilling hydro-sensitive clays and shales, it is regarded as a very effective shale stabilizer. Clay swelling is controlled by water from drilling fluid. However, potassium ions in the brine prevent water from entering individual clay platelets in shale. Its density ranges from 8.4 to 9.7 lbs/gal for this product. Clear potassium chloride brine fluids can be employed as a multi-salt blend or as a stand-alone drill-in fluid. Due to its effectiveness in shale inhibition in crucial water-sensitive shale formations, demand for this brine fluid is anticipated to rise throughout the projection period.

Oil and gas wells are constructed and maintained using calcium chloride. It boosts density, stabilizes shale formations, and aids in suitable fluids acquiring the necessary consistency. It seals well casings and replaces drilling mud as a completion fluid. In an oilfield, calcium chloride serves various purposes, mainly as a fluid for workovers, concrete accelerators, drilling fluids, and completion fluids. Calcium chloride is one of the most cost-effective brines in oilfield completion and workover operations. In order to prevent clay swelling, dispersion, and migration, it is utilized as a single-salt brine.

Calcium bromide is mainly employed as a drill-in fluid in the upstream oil and gas sector. Additionally, it is employed as a fluid for gravel packing, workovers, well completions, and packers. It can also be used as a clear brine fluid that stands alone or mixed with calcium chloride to create fluids with various densities and crystallization temperatures. Clays prone to swelling cannot hydrate or migrate thanks to their inhibitive qualities. Mixing calcium bromide with other brine provides better fluid and thermal stability. For instance, in 2016, an operator drilling an exploratory well in the Panna deposit in India replaced blended calcium bromide brine with Cesium formate brine. The excellent test showed that the test fluid effectively controlled fluid loss and suspended solids. Additionally, calcium-based brine has been utilized in place of chloride-based brine because it reduces formation damage by solid invasion and shale dispersion. Throughout the projection period, this is anticipated to boost industry demand.

On the Basis of End-User

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. Producing oil and gas onshore involves placing an oil rig on land or drilling beneath the earth's surface. When it comes to a mobile rig, the assembly process can be completed in a relatively short amount of time. Preparing a well for drilling and completion is necessary before beginning the oil recovery process. Onshore oilfields account for more than 70% of all recoverable crude oil worldwide. Well-produced oil is piped or delivered to petroleum refineries, where it is used as a feedstock. With minor amounts of ethane, propane, butanes, pentanes, and heavier hydrocarbons, methane makes up the majority of natural gas.

The drilling rigs used in offshore oil and gas production are situated on platforms on the ocean floor. Offshore oil and gas production can be classified as shallow water, deep water, or ultra-deep water, depending on the depth of the seabed. Thousands of platforms are operating in seas up to 6,000 feet deep in the central and western Gulf of Mexico, where most offshore oil and natural gas lease and development activity currently occurs. In addition, approximately 15% of the nation's crude oil output in 2019 and 3% of the nation's total dry natural gas production were produced offshore in the Federal Gulf of Mexico. Oil and gas producers favor onshore oil wells because onshore production is less expensive than offshore production. However, it is anticipated that the discovery of new oilfields and shale gas reserves in North America would increase offshore drilling and thus raise the demand for drilling and completion fluids.

Recent Developments

• May 2019- A non-aqueous formulation of DELTA-TEQ low-pressure-impact drilling fluid manufactured by Baker Hughes, a GE business, was introduced. Its innovative composition of specific clay and polymers lessens the hydraulic impact.
• June 2018- The world's largest provider of oil services, Halliburton and TETRA Technologies Inc., announced that they had signed a global cooperative marketing and development agreement for the sale and distribution of TETRA's exclusive TETRA CS Neptune completion fluids. The cooperative agreement promotes and motivates the development of additional oil and gas drilling and completion fluids based on their respective technological and resource capacities.