Impact of the COVID-19 Outbreak on the Drilling and Completion Fluids Market
The drilling and completion fluids are fundamental necessities for starting the field development process after the positive exploration of an oil field. The increase in drilling operations, deep-water drilling operations, and new shale gas discoveries, are some of the factors driving the growth of the market. Besides, the rising demand for crude oil has increased drilling activities. Large quantities of oil are required as fuel for several industries, including automobiles, transportation, chemicals, and lubricants. However, during the COVID-19 pandemic, the drastic decrease in the demand and prices of crude oil has significantly impacted the oil & gas industry, which has also reduced drilling activities, hindering the growth of the market. The disruptions in the supply chain, trade, and shipping activities owing to the spread of COVID-19 across the world are also hampering the growth of the market. The halt in drilling at onshore and offshore sites owing to the lockdowns initiated by the government authorities to contain the spread of the epidemic has significantly impacted the growth of the market. On the flip side, the decreasing demand for crude oil is expected to impact large oil importers such as India, positively, as the country meets more than 80% of its oil requirements through imports.
FORECASTED GLOBAL DEMAND FOR OIL AMIDST THE CORONAVIRUS PANDEMIC FROM 2020 TO Q1 2021, BY REGION
According to the MRFR analysis, regions such as the Asia-Pacific and the Middle East are expected to dominate the market over the forecast period owing to the increasing exploration activities in the regions and enormous potential resources in countries including Bahrain, Kuwait, and Russia and the South China Sea region. Besides, North America accounts for the highest production of oil & gas, followed by Europe, owing to the constant increase in offshore activities in the North Sea and onshore activities in Russia. The market is expected to face challenges post the lockdown period.
Source: The U.S. Energy Information Administration
Source: Primary Experts, Secondary Sources, and MRFR Analysis