Oil Field Chemicals Market Size

Global Oilfield Chemicals Market Overview

The  Oilfield Chemicals Market Size was valued at USD 17.02 Billion in 2022. the oilfield chemical industry projected to grow from USD 17.89 Billion in 2023 to USD 29.10 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.64% during the forecast period (2023 - 2030). The global growth of the market is a result of the expansion activities that are being carried out on the global scale for oil and gas exploration. The global market is being motivated by the rise in activities for oil exploration and development, which in turn raises a diversified need for oilfield chemicals, and hence, creates major demand for specialized drilling fluids. There is a growth in projects for deep-water and ultra-deep-water drilling, alongside a rapid expansion of shale oil and gas drilling and production that have good opportunities for a store in the market.

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Oilfield Chemicals Market Trends

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

  
  

The expected factor that will help to fuel the market growth of the global oilfield chemicals industry is the growing degree of the output of crude oil that is coupled with the increasing deep drilling operations for both offshore and onshore work. In addition, there is a growth in spending on advanced oilfield chemicals to boost properties such as thickening, emulsification, and stabilization alongside the conditioning process that is likely during the forecast period that is likely to generate growth opportunities for the global market players. Evaluating shale gas extraction technology is propelling which is another important factor guiding the expansion of the oilfield chemicals industry in the global market premises during the ongoing forecast period ending in 2030. 

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Additionally, t is estimated that the development initiatives created by developed countries functioning in the global market premises would serve as an opportunity for the future market during the ongoing forecast period that will be ending in 2028. Many oil exploration schemes are on the rise, including fracking and cementing as the initial phases alongside the increasing degree of the market in this sector for oilfield chemicals. The tremendous demand for technologically and innovatively advanced cement products with non-ionic and low-viscous properties, such as Selvol Polyvinyl Alcohol, is expected to open up opportunities and expansion chances in the oilfield chemical industry.

Oilfield Chemicals Market Segment Insights

Oilfield Chemicals Chemical Type Insights

The  Oilfield Chemicals Market segmentation, based on Chemical type, includes demulsifiers, corrosion inhibitors, water clarifiers, biocides, scale inhibitors, paraffin inhibitors, hydrogen sulfide scavengers, gas well foamers, and others. The demulsifiers segment is expected to dominate the market in the forthcoming years and grow at a CAGR of 8%. Demulsifiers are used to separate water and oil from the oil field. They create changes in oil density and make separation easier by reducing corrosion of the pipelines. Thereby resulting in a reduction in the overall equipment maintenance cost.  Factors that may be incorporated in the extensive application of water separation and oil from the crude water-oil emulsions, thus reducing the chances of adultery in the oil produced. 

Oilfield Chemicals Application Insights

Based on Application, the  Oilfield Chemicals Market segmentation includes drilling, cement, stimulation, and production. The drilling application segment dominated the market share in 2021 and may continue its dominance during the forecast period. The increase in oil gas operations through the development of hydraulic fracturing and drilling processes shall drive industry growth. In the drilling segment, these chemicals stabilize temperatures and prevent contaminated products from entering the drilling fluid system. They are also additives to the drilling fluid used to maintain hydrostatic pressure and to clear the wellbore from cutting. In addition, technological advances and the rise in drilling activities are expected to increase product demand. 

Figure 2:  Oilfield Chemicals Market, by Application, 2023 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Oilfield Chemicals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The market in North America is expected to dominate the global market during the forecast period. This is attributed to the increase in oil gas operations through the development of hydraulic fracturing and drilling processes. In addition, technological advances and a rise in drilling activities are expected to increase regional growth during the forecast period. The growing exploration and production of shale gas in the U.S. are expected to increase oil-based chemicals.

Figure 3:  OILFIELD CHEMICALS MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review 

The market in Asia Pacific may witness the highest growth rate in terms of value during the forecast period. The increase in consumption and demand for shale gas from various industries, rapid urbanization, and population growth in the region is attributed to industry growth. The regional market growth is mainly attributed to rising exploration activities in India, Mainland China, the South China Sea, and Southeast Asian countries. The growing demand for crude oil and petroleum and huge investment in the energy sector to develop the economy is leading the Asia Pacific region.

The Europe oilfield chemicals market size is expected to witness a significant growth rate during the forecast period. The growth is attributed to increased shale gas production and exploration along with growing demand for petroleum-based fuel from the automotive or transportation industry.

Oilfield Chemicals Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Oilfield Chemicals market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Oilfield Chemicals industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Oil field Chemicals. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Oilfield Chemicals industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Oilfield Chemicals industry to benefit customers and expand the market sector. The oilfield chemical companies has recently given medicine some of the most important advantages. Major Oilfield Chemicals market players, including Schlumberger Limited (US), Halliburton (US), Ideal Energy Solutions, LLC (US), Kemira (Finland), and others, are attempting to increase market demand by funding R&D initiatives.

SLB (also known as Schlumberger) is a technology company that provides digital solutions and technologies for the energy industry. It operates through four divisions: Digital and Integration, Reservoir Performance, Well Construction, and Production Systems. The Digital and Integration division offers digital solutions, multiclient seismic surveys and data processing, and asset performance solutions.

Also, Zero Halliburton is a manufacturer of briefcases. It offers hard-wearing travel cases, luggage carriers, bags, attach cases, backpacks, packing systems, tri-fold garment sleeves, camera cases, and other accessories.

Key Companies in the Oilfield Chemicals market include

• Schlumberger Limited (US)


• Halliburton (US)


• Ideal Energy Solutions, LLC (US)


• Kemira (Finland)


• Royal Dutch Shell PLC (The Netherlands)


• Solvay (Belgium)


• Baker Hughes, a GE Company LLC (UK)


• BASF SE (Germany)


• Clariant (US)

Oilfield Chemicals Industry Developments

In June 2021, Uzma, a Malaysian contractor, landed a deal to offer production and oilfield chemicals to the operator of the Bualuang oilfield in the Gulf of Thailand. Uzma stated that the three-year contract with the operator Medco Energi includes manufacturing and oilfield chemicals, including technical services for a chemical management program at the Bualuang field. The deal is on a callout sourced whereby the services will be offered upon Medco Energi's written callout notice and is worth USD 3 million. Medco is the sole owner of the Bualuang field, operating since 2008.

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. 

Oilfield Chemicals Market Segmentation

Oilfield Chemicals Type Process Outlook

• Demulsifiers


• Corrosion Inhibitors


• Water Clarifiers


• Biocides


• Scale Inhibitors


• Paraffin Inhibitors


• Hydrogen Sulfide Scavengers


• Gas Well Foamers


• Others

Oilfield Chemicals Application Outlook

• Drilling


• Cement


• Stimulation


• Production

Oilfield Chemicals Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America