A drilling fluid additive system is provided wherein the system is manufactured by a method comprised of admixing graphite with at least one carrier such as a polypropylene glycol or oil to create a suspended mixture, and allowing the surface of the graphite to be pre-wet with the carrier prior to adding the mixture to a drilling fluid; and then further admixing hydrophilic clay, a pH controller, a fluid loss controller, and at least one dispersant to said drilling fluid additive system.