Global Oilfield Chemicals Market: Information By Type (Inhibitors & Scavengers, Demulsifiers, Others), By Application (Upstream, Midstream, Downstream) and By Region (North America, Europe, Asia-Pacific, South America and the Middle East & Africa) - Forecast till 2027

Market Overview

According to MRFR, the Global Oilfield Chemicals Market is expected to register a CAGR of 4.64% to reach USD 1.56 Billion by 2025. The growth of the global market is mainly led by growing activities across the globe in oil & gas exploration.

COVID-19 Analysis

Owing to the Covid-19 epidemic, the oil and gas industry was seriously impacted when it resulted in a lockdown that affected various end-use sectors due to delays in the supply chain and distributor activities. The manufacturing plants have undergone substantial delays. Furthermore, border closures and export bans have contributed to increases in the costs and stocks of raw materials. Focus is put on reducing capital spending by postponing final investment decisions (FIDs) on new oil & gas developments by key players in the global oil & gas industry. With the ease of lockout and trade limits, however and government funding, demand for oil from end-use sectors is expected to see a massive rise in demand, which is likely to lead to higher oil extraction activities and thus boost demand for chemicals from the oilfield.

Market Dynamics

Drivers

Expansion Of Shale Oil & Gas Drilling & Production to Fuel Market Growth

The aspect expected to fuel the growth of the global oilfield chemicals industry is the growing output of crude oil coupled with increasing deep drilling operations both offshore and onshore. In addition, growing spending on advanced oilfield chemicals to boost properties such as thickening, emulsification, stabilisation and conditioning is likely during the forecast period to generate growth opportunities for market players. Evaluating shale gas extraction technology is another important factor guiding the expansion of the oilfield chemicals industry. The market is motivated by the rise in activities for oil exploration & development, which in turn raises the need for oilfield chemicals, demand for specialised drilling fluids, growth in projects for deep-water & ultra-deep-water drilling, and rapid expansion of shale oil & gas drilling & production. In addition, ongoing activities to satisfy global energy demand have added more petroleum crude oil wells to the worldwide output state, which increases the demand for oilfield chemicals.

Opportunities

Growing demand for Technologically Advanced Cement Products to Boost Market Growth

It is estimated that development initiatives created by developed countries would serve as an opportunity for the future market. Many oil exploration schemes have begun, including fracking and cementing as the initial phases and increasing the market in this sector for oilfield chemicals. In addition, the tremendous demand for technologically advanced cement products with non-ionic and low-viscous properties, such as Selvol Polyvinyl Alcohol, is expected to open up opportunities in the oilfield chemical industry.

Restraints

Stringent Regulations to Impede Market Growth

However as an alternative to conventional fossil fuels, tight environmental legislation and changes towards renewable energy sources such as solar, biomass, wind, geothermal, and hydropower are projected to hamper the development of the global forecast era for the oilfield chemicals sector. In the other hand, dropping oil prices are projected to impede the market's ability.

Segmental Analysis

By Type

Based on type, inhibitors & scavengers, demulsifiers, friction reducers, rheology modifiers, biocides, surfactants, pour-point depressants, and others have been segmented through the global sector. The category of inhibitors & scavengers leads the market and is projected to hit a size of USD 21,28 million during the forecast period, recording a CAGR of 6.12 percent. The demulsifier segment, led by the biocides portion, is the most profitable on the market. To distinguish water and oil in the oilfield, demulsifiers are used. They enable the oil density to adjust and allow for better separation by reducing the deterioration of the pipelines. This results in the total operating expense of the equipment being lowered.

By Application

The global oilfield chemicals industry has been bifurcated into upstream, midstream, and downstream on the basis of application. In 2018, the upstream market accounted for around half of the global demand for chemicals from oilfields. During the review period, the downstream segment is projected to expand at a substantial rate.  

Regional Analysis

The geographical overview of the global market has been conducted in four major regions, comprising the Asia Pacific, North America, Europe, and the rest of the world.

North America to Lead the market due to Growing Exploration Projects

Due to the increased focus on shale gas production and exploration in the region, the North American region dominates the global demand for oilfield chemicals. In North America, the United States accounts for the largest share, primarily due to the boom in the shale gas sector, technical developments, and growing oil exports. In exchange, this increasing shale gas production in North America is expected to boost demand for chemicals from oilfields over the forecast period. In North America, rapid growth of unconventional oil and gas production has resulted in a rise in the amount of chemicals used. The volumes consumed in the future would constitute a significant portion of the market based on the expected development in this region.

Growing Development in the Oil & Gas Sector to Drive APAC Market Scope

During the review period, the Asia-Pacific and Middle East & Africa markets are projected to experience substantial growth due to a rise in exploration and development activities and the launch of new oil and gas production ventures. Shale gas supply has risen significantly in recent years, and demand for natural gas is projected to grow over the forecast horizon due to growing demand from the big emerging Asia-Pacific economies.

Growing Demand for Petroleum-Based Fuel From The European Automotive Sector to Bolster the Market Growth

In Europe, the market is projected to see modest expansion, led by Russia, Germany, France and the United Kingdom. Increased shale gas exploration and development, and the demand for petroleum-based fuel from the automotive sector are the key drivers of the studied sector.

Growing Foreign Investments to Boost Market Growth

The Latin American market is expected to report a modest CAGR due to increased investment by private and international companies in Brazil and Argentina on exploration, offshore operations, and development activities.

Competitive Landscape

The major players competing in the global market for oilfield chemicals concentrate mainly on the production of innovative and specialised blends of oilfield chemicals. In order to retain the role and extend the regional footprint, the players operating in the global oilfield chemicals industry follow different strategies such as growth, mergers & acquisitions, partnerships, joint ventures, and expansion. The most commonly used growth strategies by industry players in 2018 were expansion and acquisitions to gain full market share.

• Schlumberger Limited (US)


• Baker Hughes, a GE Company LLC (UK)


• Ideal Energy Solutions, LLC (US)


• Royal Dutch Shell PLC (The Netherlands)


• BASF SE (Germany)


• Solvay (Belgium)


• Halliburton (US)


• Clariant (US)


• Kemira (Finland)


• Albemarle Corporation (US)


• Stepan Company (US)


• Nalco Champion (US)


• Croda International PLC (UK)


• Huntsman International LLC (US)


• Ashland (US)


• The Lubrizol Corporation (US)

Recent Development

December 2020: Kraton Company, the world's largest sustainable manufacturer of specialty polymers, oilfield chemicals and high-value pine wood pulping co-product biobased products, announced an extension to its senior secured asset-based revolving credit facility.

November 2020: In the Upstream Oil & Gas sector, Detechtion Technology, the proven Asset Performance Control, Industrial IoT, and Mobile Oilfield Management system provider, declared the availability on a hardware-as-a-service basis of its Enbase product range. The new business model helps clients to track oilfield properties remotely in a cost-effective way.

Report Overview

This analysis by MRFR is an all-encompassing tool for business dynamics. It primarily involves crucial examination of the journeys of consumers or clients, existing and evolving avenues and strategic structure to enable CXOs to make successful decisions.

By Type

• Inhibitors & Scavengers


• Demulsifiers


• Others

By Application

• Upstream


• Midstream


• Downstream

Frequently Asked Questions (FAQ) :

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