Procurement Market Intelligence Report
Drilling Fluids
Sourcing Guide & Market Intelligence
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Drilling Fluids Global Overview
Definition
Summary
Drilling fluids, also known as drilling mud, assist in drilling boreholes. They maintain wellbore stability by suspending drill cuttings and cooling and lubricating the drill bit. Drilling fluids are also used when drilling for natural gas and oil, mining, and water wells. They can be classified as water-based muds, gaseous drilling fluids, and non-aqueous muds. Common buyers of drilling fluids are mining firms, oil and natural gas extractors, and water well drilling firms.
This Report Includes:
- Water-Based Muds
- Oil-Based Muds
- Synthetic-Based Muds
Not in this Report:
- Drilling Services
- Drilling Equipment
Global Drilling Fluids Procurement Trends
Discover the top international trends affecting procurement in the global Drilling Fluids market.
Warning Trends
Tariffs on fuel additives, lubricants, and anti-corrosive materials to increase costs in the sector
- On August 1, the Trump Administration finalized sweeping tariffs on most major US import partners, in addition to the already announced 25.0% and 35.0% tariffs on Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- These tariffs will increase both the cost of importing fuel additives, lubricants, and anti-corrosive materials and the cost of sourcing primary inputs necessary for making these products, affecting both international and domestic suppliers. However, reduced oil and gas demand tied to higher tariffs and a possible economic slowdown may counteract some of the tariff price increases in this market.
- Tariffs on steel and aluminum and falling oil prices are also increasing vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new oil and gas wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% in price with the increase in tariffs, and because these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Drilling Fluids Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 2,180 |
| #2 Europe | 363 |
| #3 India | 299 |
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2
Geography Drilldown - US
Average Cost of Drilling Fluids
United States
2026 Market Pricing$102.00 to $X,XXX.XX
per metric tonAverage Price
Prices in the Drilling Fluids market range from $102.00 to $X,XXX.XX, depending on Type of Fluid, Additives and Performance Level. For example, lower prices are associated with Water-based mud (WBM), whereas higher prices are associated with Synthetic-based mud (SBM) and Oil-based mud (OBM).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Drilling Fluids Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Drilling Fluids market, prices in the US have grown 2.2% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Drilling Fluids
Total cost of ownership is High in the Drilling Fluids market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Consumables
Additional Fees
Waste Management
Unforeseen
Emergencies
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.2 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Chemical Wholesalers
- Industrial Machinery & Equipment Manufacturers
- Truck & Bus Manufacturers
2nd
Tier Suppliers
- Inorganic Chemical Manufacturers
- Organic Chemical Manufacturers
- Iron & Steel Manufacturers
- Semiconductor & Circuit Manufacturers
Biggest Drilling Fluids Suppliers in the US by Revenue
The largest Drilling Fluids vendors by revenue in the US are Univar Inc., Chevron Phillips Chemical Company LLC and Baker Hughes Company. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Baker Hughes Company | Global | HOUSTON, TX | >10,000 | 10-15 | ||||
| Weatherford International Plc | Global | HOUSTON | >10,000 | 10-15 | ||||
| Newpark Resources, Inc. | International | THE WOODLANDS, TX | 1,001-10,000 | 10-15 | ||||
| Schlumberger Limited | Global | HOUSTON, TX | >10,000 | 15-20 | ||||
| Halliburton Company | Global | HOUSTON | >10,000 | 20-25 | ||||
| Univar Inc. | Global | DOWNERS GROVE, IL | 1,001-10,000 | 5-10 | ||||
| Nov Inc. | Global | HOUSTON, TX | >10,000 | 5-10 | ||||
| Chevron Phillips Chemical Company LLC | Global | The Woodlands, TX | 1,001-10,000 | 5-10 | ||||
| Ces Energy Solutions Corp. | Global | Calgary, CA | 1,001-10,000 | 5-10 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Drilling Fluids market is 4.0% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The United States is a net importer of drilling fluids, meaning it imports more in value than it exports in market products, which can indicate an increased reliance on foreign suppliers. However, in the market for drilling fluids, buyers benefit from having the options to procure from foreign suppliers as increased competition with domestic suppliers drives down market prices and increases product quality over time.
The level of market share concentration is considered high, meaning the top four suppliers account for more than 45.0% of total market revenue. The market is highly concentrated due to the significant up-front costs required to operate in the market, reducing competition in the market and harming buyer power.
On average, suppliers in the drilling fluids market are considered to have low financial risk, which indicates a low risk of experiencing service disruptions as a result of a supplier’s financial instability.
Supply chain risk is high in the market for drilling fluids as suppliers depend on high-risk chemical wholesalers to provide key inputs necessary for the production of drilling fluids. Disruptions in the supply of common chemicals used in drilling fluids can have a negative impact on the availability of drilling fluids.
Supplier Information
Baker Hughes Company
Baker Hughes Company is a public company operating globally in the mining, manufacturing, manufacturing and professional, scientific and technical services sectors. The company's offerings include inflow control devices, coiled tubing monitoring systems, drilling fluids, hydraulic power tongs, oilfield separators.... Subscribe to learn more
Newpark Resources, Inc.
NPK International Inc. is a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products and services, including planning, logistics, and site restoration. It serves power transmission, oil and natural gas exploration and production, pipeline, renewable... Subscribe to learn more
Weatherford International Plc
Weatherford International Plc is a public company operating globally in the mining, manufacturing and professional, scientific and technical services sectors. The company's offerings include inflow control devices, drilling tools, drill bits, downhole instrumentation, coiled tubing monitoring systems. Founded... Subscribe to learn more
Schlumberger Limited
Schlumberger Limited is a public company operating globally in the mining, manufacturing, manufacturing, professional, scientific and technical services and other services (except public administration) sectors. The company's offerings include inflow control devices, drilling tools, drill bits, downhole instrumentation,... Subscribe to learn more
Halliburton Company
Halliburton Company is a products and services provider to the energy industry. It organizes its business into two operating segments: Completion and Production segment, which delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and... Subscribe to learn more
Ces Energy Solutions Corp.
Ces Energy Solutions Corp. is a public company operating globally in the manufacturing sector. The company's offerings include drilling fluids. Founded in 1986, the company is currently headquartered in Calgary, Canada with an estimated 5500 employees. Subscribe to learn more
Chevron Phillips Chemical Company LLC
Chevron Phillips Chemical Company LLC is a private company operating globally in the manufacturing sector. The company's offerings include refining catalysts, paraffins and drilling fluids. Founded in 2000, the company is currently headquartered in The Woodlands, Texas, United States of America with an estimated... Subscribe to learn more
Imdex Limited
Imdex Limited is a public company operating globally in the manufacturing sector. The company's offerings include drilling fluids. Founded in 1980, the company is currently headquartered in Balcatta, Australia with an estimated 750 employees. Subscribe to learn more
Nov Inc.
NOV Inc. is a provider of equipment and technology to the global energy industry. It organizes its business into two reporting segments: the Energy Products and Services segment, which provides drill bits, downhole tools, completion tools, artificial lift system, tubular coating and inspection services, solids... Subscribe to learn more
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Procurement Management KPIs for the Drilling Fluids Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Quality Assurance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Total response time Number of customer queries |
The average response time represents the average amount of time it takes to respond to a customer regarding questions about drilling fluids. Fast response times are important for the buyer, as the buyer and the drilling fluid supplier may need to be in close communication to solve difficult problems and optimize fluid performance. |
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of negative customer responses |
Customer satisfaction represents customers’ overall satisfaction with a company. High levels of customer satisfaction typically indicate that the vendor is providing quality drilling fluids and customer service. This KPI can be used as a proxy for a company's reputation. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Shipping
Can you provide a list of your distribution facilities’ locations, both domestically and internationally, if applicable?
What are the average shipping rates to my facility? What factors affect these rates?
Supply Chain Risk
How have fluctuations in the price of key inputs affected the price of your drilling fluids?
What type of agreements and contracts do you have with your upstream suppliers? What is the remaining duration on these contracts?
Vendor Financial Risk
Has your company ever been at risk of bankruptcy and what was done to prevent this?
How does your company stay profitable during contractions in the economy?
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Drilling Fluids RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe the size of their organization and their location.
Buyers should specify the cities and state(s) where they require drilling fluid deliveries.
Statement Of Need
Buyers should specify the type(s) of drilling fluids required (e.g., water-based mud, oil-based mud or synthetic-based mud).
Buyers should provide drilling fluid specifications, such as viscosity, density, and additives.
Project Budget
Buyers should specify the total budget for the purchase.
Buyers should state their preference for a pricing model.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
