Market Restraints
Impact of drilling chemicals on the environment
Drilling operations require drilling fluids that contain additive chemicals injected through the drill string. These chemicals, when mixed with stone cuttings, from residues, which when discharge result in detrimental effects on the surrounding ecosystem. The contaminants from this residue get mixed with groundwater and make the groundwater toxic. This causes serious water and soil pollution and disturbs the natural habitat of various organisms. Biodegradable chemicals are costly thus resulting in limited adoption. Various governments around the world have imposed severe regulations on the usage and discharge of drilling fluids to control pollution.
Drivers
Investments in onshore and offshore oil and gas drilling have grown substantially in various parts of the world to extract fossil fuels. Enormous demand for fossil fuels in energy generation is thus a key driver for drilling chemicals market.
Strides made in the strategic production of shale oil and gas in some parts of the world are propelling the expansion of avenues in the drilling chemicals market. Several specialty chemicals in shale gas extraction have steadily been used in various hydraulic fracturing methods.
The COVID-19 outbreak impacted the drilling chemicals market negatively. The market witnessed a sharp decline in demand for drilling chemicals from various industries. Due to the lockdown and shutdown of production factories, the COVID-19 pandemic had a negative impact on market demand. The oil & gas sector has been severely affected due to the COVID-19 outbreak as it resulted in lockdown, which impacted numerous end-use industries owing to disruptions in vendor operations and supply chain. The production facilities have faced major disruptions. Closures of borders and export bans have led to a fluctuation in raw material prices and supplies.
Drilling Chemicals Market Report Snapshots
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