Oilfield Chemicals Market Size, Share, Opportunities, And Trends By Type (Corrosion Inhibitor, Biocides, Surfactant, Demulsifiers, Others), By Application (Production, Drilling, Refining, Stimulation, Others), And By Geography - Forecasts From 2024 To 2029
- Published : Feb 2024
- Report Code : KSI061611605
- Pages : 124
The oilfield chemicals market was valued at US$28.178 billion in 2022 and is expected to grow at a CAGR of 5.91% over the forecast period to reach a total market size of US$42.129 billion by 2029.
The oilfield chemicals market is poised for consistent growth, propelled by several key factors. Despite the increasing emphasis on renewable energy sources, oil and gas are projected to maintain a significant share of the global energy mix in the foreseeable future. This sustained demand for oil and gas underscores the importance of efficient exploration and production activities, which heavily rely on oilfield chemicals.
The depletion of easily accessible oil and gas reserves is prompting companies to explore more challenging environments such as deepwater wells and unconventional resources like shale formations. Extracting resources from these environments necessitates the use of specialized oilfield chemicals to enhance drilling efficiency and ensure wellbore stability.
The advent of the shale gas revolution has significantly reshaped the global energy landscape. Shale gas extraction relies on a specific set of oilfield chemicals for hydraulic fracturing, a process essential for unlocking these resources. The burgeoning growth of the shale gas industry serves as a major driver for the oilfield chemicals market.
Furthermore, the imposition of stricter environmental regulations is compelling the oilfield chemicals industry to innovate and develop more eco-friendly and biodegradable formulations. This increased focus on sustainability is opening up a new market segment for "green" oilfield chemicals, thereby creating growth opportunities within the industry.
Market Drivers:
- An increase in drilling and cementing activities-
An uptick in drilling and cementing activities necessitates the use of oilfield chemicals to stabilize temperatures and prevent the ingress of contaminants into the drilling fluid system. These chemicals serve as additives in drilling fluids to uphold hydrostatic pressure and facilitate the removal of cuttings from the wellbore.
Crude oil extraction spans across 32 U.S. states and offshore waters. In 2022, five states collectively contributed approximately 72% of the total U.S. crude oil production. Globally, 98 countries produced around 80.75 million barrels of crude oil in the same year, with five nations accounting for roughly 52% of the total output.
As per the Bureau of Energy Efficiency, India's cement production is anticipated to reach 500 million tonnes by 2020 and surge to 800 million tonnes by 2030, driven by infrastructure development.
Additionally, anticipated growth in deep-water drilling operations underscores the increasing demand for oilfield chemicals. With numerous oil extraction projects underway, drilling and cementing activities represent early phases, thereby heightening the need for oilfield chemicals in this domain.
- Demand from crude oil production-
The oilfield chemicals market is poised for growth, driven by increasing demand across various petroleum activities, including drilling, well stimulation, production, cementing, improved oil recovery, and hydraulic fracturing. Factors such as rising crude oil production, a shift towards unconventional drilling methods, and increasing operational complexity are expected to fuel the demand for oilfield chemicals.
Current estimates suggest that a significant portion, about 79.5% (1,243.52 billion barrels), of the world's proven oil reserves are located in OPEC Member Countries, with the majority concentrated in the Middle East, accounting for 67.2% of the OPEC total. On a per capita basis, OPEC's net oil export revenue saw an increase from $1,205 in 2021 to $1,685 in 2022.
Specialized oilfield chemicals find crucial applications in sectors such as workover and completion. With numerous oil extraction projects underway, where drilling and cementing represent initial stages, there is a growing demand for oilfield chemicals in this segment.
Market Restraint:
- Price fluctuation as a major barrier-
The utilization of oilfield chemicals has raised environmental concerns owing to their potential toxicity and adverse effects on ecosystems. To address these concerns, stricter environmental regulations are being implemented globally, either restricting the use of harmful chemicals or mandating the adoption of eco-friendly alternatives. As a result, oil and gas companies are facing increased costs as they transition towards more sustainable practices.
In January 2021, the U.S. Crude Oil First Purchase Price was recorded at $49.47 per barrel. By January 2022, it had risen to $80.33 per barrel before declining to $75.71 per barrel in January 2023. When crude oil prices fall below the $50 per barrel threshold, many crude oil producers encounter financial losses.
Consequently, this leads to a reduction in drilling activities and the suspension of new well drilling. These fluctuations in prices ultimately contribute to a decrease in crude oil production, thereby negatively impacting the demand for oilfield chemicals in this sector.
Oilfield chemicals market segment by application into production, drilling, refining, stimulation, and others
The oilfield chemicals market is segmented by application into production, drilling, refining, stimulation, and other miscellaneous uses. In production, a diverse array of chemicals is employed for tasks such as reservoir management, fluid handling, and separation processes. Drilling activities prioritize specialized chemicals, particularly for advanced techniques like horizontal and shale gas drilling.
The stimulation segment sees increasing demand for fracturing fluids and other chemicals due to the expanding exploration of shale oil and gas. Additional applications include chemicals used for pipeline maintenance and the prevention of corrosion and contamination in storage tanks.
North America is anticipated to hold a significant share of the oilfields chemical market-
Due to its growing emphasis on shale gas production and development, the North American area is significant in the global oilfield chemicals market. The United States has the largest market share in the North American region, due to the shale gas boom, technological improvements, and increased oil exports.
Shale gas production has increased dramatically in recent years, and demand for natural gas is anticipated to climb throughout the forecast period due to increased demand from Asia-Pacific emerging countries.
Market Developments:
- March 2024- ADNOC closed the acquisition of a 24.9% stake in OMV. The successful completion accelerated the delivery of ADNOC’s global chemicals expansion strategy and reinforced its focus on partnerships, value creation, and growth. ADNOC and OMV remained engaged in open-ended negotiations about a potential merger of Borouge and Borealis.
- December 2023- Innospec Inc. announced that it had completed the acquisition of QGP Química Geral, a prominent specialty chemicals company headquartered in Brazil. With this acquisition, Innospec gained a significant manufacturing, customer service, and product development presence in South America, which was recognized as one of the largest and most significant global markets for all Innospec technologies.
- May 2023- Foremark Performance Chemicals, a portfolio company of SK Capital Partners, announced the completion of its acquisition of NexGen Chemical Technologies, a provider of innovative, alternative natural gas sweetening solutions. These solutions aimed to enhance the efficiency and overall cost-effectiveness of operations for E&P and midstream operators. The acquisition was made from Black Bay Energy Capital.
- October 2022- Clariant and Dorf Ketal, two prominent specialty chemical products and services companies, announced a definitive agreement for Dorf Ketal to acquire Clariant’s North American (NORAM) Land Oil business. This business segment provided chemical technologies and services to the North American oil and gas industry.
Oilfield Chemicals Market Scope:
Report Metric | Details |
Market Size Value in 2022 | US$28.178 billion |
Market Size Value in 2029 | US$42.129 billion |
Growth Rate | CAGR of 5.91% billion from 2022 to 2029 |
Study Period | 2019 to 2029 |
Historical Data | 2019 to 2022 |
Base Year | 2023 |
Forecast Period | 2024 – 2029 |
Forecast Unit (Value) | USD Billion |
Segments Covered |
|
Companies Covered |
|
Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
Customization Scope | Free report customization with purchase |
Market Segmentation:
- By Type
- Corrosion Inhibitor
- Biocides
- Surfactant
- Demulsifiers
- Others
- By Application
- Production
- Drilling
- Refining
- Stimulation
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- UK
- Italy
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- India
- Indonesia
- Taiwan
- Thailand
- Others
- North America
Frequently Asked Questions (FAQs)
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
1.8. Key benefits to the stakeholder
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Key Findings
3.2. CXO perspective
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Analyst View
5. OILFIELD CHEMICALS MARKET BY TYPE
5.1. Introduction
5.2. Corrosion Inhibitor
5.2.1. Market opportunities and trends
5.2.2. Growth prospects
5.2.3. Geographic lucrativeness
5.3. Biocides
5.3.1. Market opportunities and trends
5.3.2. Growth prospects
5.3.3. Geographic lucrativeness
5.4. Surfactant
5.4.1. Market opportunities and trends
5.4.2. Growth prospects
5.4.3. Geographic lucrativeness
5.5. Demulsifiers
5.5.1. Market opportunities and trends
5.5.2. Growth prospects
5.5.3. Geographic lucrativeness
5.6. Others
5.6.1. Market opportunities and trends
5.6.2. Growth prospects
5.6.3. Geographic lucrativeness
6. OILFIELD CHEMICALS MARKET BY APPLICATION
6.1. Introduction
6.2. Production
6.2.1. Market opportunities and trends
6.2.2. Growth prospects
6.2.3. Geographic lucrativeness
6.3. Drilling
6.3.1. Market opportunities and trends
6.3.2. Growth prospects
6.3.3. Geographic lucrativeness
6.4. Refining
6.4.1. Market opportunities and trends
6.4.2. Growth prospects
6.4.3. Geographic lucrativeness
6.5. Stimulation
6.5.1. Market opportunities and trends
6.5.2. Growth prospects
6.5.3. Geographic lucrativeness
6.6. Others
6.6.1. Market opportunities and trends
6.6.2. Growth prospects
6.6.3. Geographic lucrativeness
7. OILFIELD CHEMICALS MARKET BY GEOGRAPHY BY GEOGRAPHY
7.1. Introduction
7.2. North America
7.2.1. By Type
7.2.2. By Application
7.2.3. By Country
7.2.3.1. United States
7.2.3.1.1. Market Trends and Opportunities
7.2.3.1.2. Growth Prospects
7.2.3.2. Canada
7.2.3.2.1. Market Trends and Opportunities
7.2.3.2.2. Growth Prospects
7.2.3.3. Mexico
7.2.3.3.1. Market Trends and Opportunities
7.2.3.3.2. Growth Prospects
7.3. South America
7.3.1. By Type
7.3.2. By Application
7.3.3. By Country
7.3.3.1. Brazil
7.3.3.1.1. Market Trends and Opportunities
7.3.3.1.2. Growth Prospects
7.3.3.2. Argentina
7.3.3.2.1. Market Trends and Opportunities
7.3.3.2.2. Growth Prospects
7.3.3.3. Others
7.3.3.3.1. Market Trends and Opportunities
7.3.3.3.2. Growth Prospects
7.4. Europe
7.4.1. By Type
7.4.2. By Application
7.4.3. By Country
7.4.3.1. Germany
7.4.3.1.1. Market Trends and Opportunities
7.4.3.1.2. Growth Prospects
7.4.3.2. France
7.4.3.2.1. Market Trends and Opportunities
7.4.3.2.2. Growth Prospects
7.4.3.3. UK
7.4.3.3.1. Market Trends and Opportunities
7.4.3.3.2. Growth Prospects
7.4.3.4. Italy
7.4.3.4.1. Market Trends and Opportunities
7.4.3.4.2. Growth Prospects
7.4.3.5. Others
7.4.3.5.1. Market Trends and Opportunities
7.4.3.5.2. Growth Prospects
7.5. Middle East and Africa
7.5.1. By Type
7.5.2. By Application
7.5.3. By Country
7.5.3.1. Saudi Arabia
7.5.3.1.1. Market Trends and Opportunities
7.5.3.1.2. Growth Prospects
7.5.3.2. UAE
7.5.3.2.1. Market Trends and Opportunities
7.5.3.2.2. Growth Prospects
7.5.3.3. Others
7.5.3.3.1. Market Trends and Opportunities
7.5.3.3.2. Growth Prospects
7.6. Asia Pacific
7.6.1. By Type
7.6.2. By Application
7.6.3. By Country
7.6.3.1. China
7.6.3.1.1. Market Trends and Opportunities
7.6.3.1.2. Growth Prospects
7.6.3.2. Japan
7.6.3.2.1. Market Trends and Opportunities
7.6.3.2.2. Growth Prospects
7.6.3.3. India
7.6.3.3.1. Market Trends and Opportunities
7.6.3.3.2. Growth Prospects
7.6.3.4. Indonesia
7.6.3.4.1. Market Trends and Opportunities
7.6.3.4.2. Growth Prospects
7.6.3.5. Taiwan
7.6.3.5.1. Market Trends and Opportunities
7.6.3.5.2. Growth Prospects
7.6.3.6. Thailand
7.6.3.6.1. Market Trends and Opportunities
7.6.3.6.2. Growth Prospects
7.6.3.7. Others
7.6.3.7.1. Market Trends and Opportunities
7.6.3.7.2. Growth Prospects
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Market Share Analysis
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Competitive Dashboard
9. COMPANY PROFILES
9.1. Huntsman International LLC
9.2. Stepan Company
9.3. BASF SE
9.4. Halliburton
9.5. Ashland
9.6. Gulf Coast Chemical LLC
9.7. The Dow Chemical Company
9.8. Solvay
9.9. Kraton Corporation
9.10. Thermax Limited
Huntsman International LLC
Stepan Company
BASF SE
Halliburton
Ashland
Gulf Coast Chemical LLC
The Dow Chemical Company
Solvay
Thermax Limited
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