ID: MRFR/CnM/6291-CR | May 2021 | Region: Global | 180 pages
Biocides are used to prevent or eliminate various types of bacteria and algae in drilling fluids and pipes. As bacteria and associated enzymes can degrade the fluids, lead to corrosion or cause pitting in pipes and equipment, and may create hydrogen sulfide, a highly toxic and dangerous gas.
Biocides are used in all the stages of oilfield development, including initial drilling of wells, production of oil & gas, and in all the aspects of maintenance of the oilfield, including storage of oil and natural gas in geological conditions (in salt caverns or depleted reservoirs). The presence of microorganisms in the oilfield negatively impacts the drilling operations by degrading petroleum hydrocarbons and increasing the oil density, sulfur content, and viscosity, which results in disruption in oil extraction and processing technology; this has resulted in increased demand for oilfield biocides in the oil & gas industry. Thus, the growth of the oil & gas industry is expected to be the major factor driving the demand for biocides and the growth of the global market.Moreover, the increasing use of hydraulic fracturing technology in the oil & gas extraction process boosts the demand for oilfield biocides globally.
However, increasing preference for renewable energy sources to reduce greenhouse gas emissions is expected to hamper the global market growth in the coming years.
Furthermore, increasing oil & gas production and extraction activities in the developing countries of Asia-Pacific and the Middle East & Africa such as India, China, Thailand, Malaysia, Indonesia, Kuwait, Saudi Arabia, and Iran on account of the rising demand for petroleum products, fuel, and energy in numerous applications is likely to create lucrative opportunities for the growth of the oil & gas industry and thus, the demand for oilfield biocides.
Covid Impact Analysis
The outbreak of COVID-19 has had a negative impact on oilfield biocidesproduction due to the disruption in the supply chain across the globe. This is because of the restrictions on travel and face-to-face meetings coupled with lockdown and curfews to limit the spread of the coronavirus.
The majority of raw materials suppliers in this market had to shut down their operating facilities due to the outbreak of COVID-19. In response to combat the virus, the key suppliers shifted their focus toward offering relief during the pandemic. However, these companies have begun operations again.Taking the situation into account, many chemical companies have halted their production facilities across the globe. Some other companies, which are still working, are operating at only 40–60% efficiency.
Manufacturers in this market have decreased their production capacities owing to the decline in demand from the end-use industries, reduced prices, and disruptions in the supply of raw materials.The manufacturers are taking a toll due to reduced demand for products and have announced reduced capital for their prospects. The company offered 80,000 Esso and Mobil fuel vouchers worth USD 2 million to frontline nurses, paramedics, and doctors as part of its Heroes Campaign in Canada through its affiliate Imperial Oil Limited.
In addition to this, the imposition of various fiscal and monetary policies across the globe to limit the damage caused by COVID -19 by the governments and managements is expected to result in certain relief.
Supply Chain Analysis
The supply chain analysis evaluates every stage and step taken by stakeholders involved throughout the production and distribution of oilfield biocides. The supply chain includes raw materials and suppliers, oilfield biocidesproducers, distributors, and end-use industries.
The key raw materials used in the manufacturing of oilfield biocides include cyclopentene, formaldehyde, sulfuric acid, ammonia, hydrochloric acid, nitromethane, and amine.Some of raw material suppliers in the Oilfield Biocides market include CU ChemieUetikon, Richman Chemical Inc, ASTACHEM, amongst others.
The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants. Generally, the distributors are engaged in long-term sales agreements with producers and end-users.The major manufacturers operating in the global oilfield biocides market, such as BASF SE, DowDuPont, Evonik, and Kemira, either distribute the product by their own centralized distribution systems or enter into distribution agreements with the various distributors across regions to ensure a continuous supply of their products worldwide.
The use of biocide products such glutaraldehyde, THPS [Tetrakis (hydroxymethyl) phosphonium sulfate] and DBNPA, in the offshore oil & gas industry, is subject to approval by the EU’s Biocidal Product Regulations (BPR); EPA’s Federal Insecticides, Fungicide, and Rodenticide Act (Fifra); and the OSPAR Convention, a convention for the Protection of the Marine Environment of the North-East Atlantic, due to the harmful effects of some of the biocides on humans and the environment.
The global oilfield biocides market has been segmented on the basis oftype, application, and region.
Based on type, the oilfield biocidesmarket has been segmented into glutaraldehyde, THPS, TTPC, DBNPA, QAC, bronopol, and others.Among these, the glutaraldehyde segment accounted for the largest market share in 2019owing to its excellent stability, ability to penetrate through biofilms and eliminate the microorganisms present in the lines.
Based on application, the Oilfield Biocides market has been segmented into upstream, midstream, and downstream. Upstream application is further segmented into drilling protection, crude oil treatment, hydraulic fracturing operations, and produced water. Midstream application is further segmented into crude oil transportation and storage and pipeline pigging and scraping operations. Downstream application is further segmented into fuel treatment and other applications such as petrochemical processing, water treatment, and others. The upstream segment was the leading segment with more than 50% of the global share in 2019. However, the downstream application segment is expected to record the fastest growth with a CAGR of 6.95% during the review period.
Global Oilfield Biocides Market Revenue, by Type, 2019 (USD Million)
Sources: MRFR Analysis
Global Oilfield BiocidesMarket Share, by Region, 2019 (%)
Sources: MRFR Analysis
The global Oilfield Biocidesmarket has been studied across five regions:Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America held the largest market share in 2019 in terms of value and tonnage and is expected to maintain its dominance throughout the forecast period; this is due to the growth of the oil & gas industry with an increase in oil drilling activities and government support. The US government in January 2018 announced to open all the US coastal waters to oil drilling, which is likely to drive the demand in the region. Asia-Pacific accounted for the second-largest market share in 2019. The growth of the regional market is attributed to the presence of large number of downstream companies in the region along with the increasing investments in deep water and ultra-deep-water exploration in the South China Sea and proposed expansions in oil exploration across the South-East Asian countries such as Thailand, Vietnam, Indonesia, and Malaysia. Russia, Norway, and the UK are among the largest countries in gtupstream exploration which is expected to drive the demand. Besides, the presence of large downstream companies in the region is expected to further boost the demand for biocides in the region.
The Latin American market is expected to grow owing to the presence of large oil reserves in the Gulf of Mexico leading to increasing deep-water explorations in the region.Middle East & Africa is expected to witness fastest growth with CAGR 7.3% throughout the forecast period.
Key players operating in the global Oilfield Biocidesmarket include DowDuPont Inc. (US), Solvay (Belgium), BASF SE (Germany), Lonza (Switzerland), Kemira Oyj (Finland), Vink Chemicals GmbH & Co. KG (Germany), Evonik Industries AG (Germany), BWA WATER ADDITIVES (UK), Pilot Chemical Corp (US), Stepan Company(US), and Nouryon (Egypt).
The global oilfield biocides market comprises a significant number of tier-1 players, tier-2 as well as small unorganized players. Leading players include various tier-1 players, including DowDuPont Inc. (US), Solvay (Belgium), BASF SE (Germany), and Evonik Industries AG (Germany), amongst others. This is owing to their large production capabilities, global revenue base, availability of raw materials, and global distribution network.
Key strategic initiativessuch as product launch and acquisition were followed by the players in the global Oilfield Biocides market. For instance, in October2019, DowDuPont launched a new cold-weather biocide for hydraulic fracturing operations.Dow Microbial Control, a business unit of DowDuPont specialty products, launched two microbial biocides, AQUCAR TN 250 LT water treatment microbiocide and AQUCAR 7140 LT water treatment microbiocide.
Global Oilfield BiocidesMarket, by Type
Global Oilfield BiocidesMarket, by Application
Global Oilfield BiocidesMarket, by Region
Frequently Asked Questions (FAQ) :
Oilfield biocides market size is expected to touch a valuation of USD 585 million by 2023.
Oilfield biocides market can showcase a CAGR of 7.33% from 2018 to 2023.
Oilfield biocides market is driven by the growth of the oil & gas industry.
The shift to renewable sources of energy can hamper the growth of the global oilfield biocides market.
North America can exhibit 7.19% CAGR in the global oilfield biocides market.
Evonik Industries AG, Nouryon, DowDuPont, BWA Water Additives, BASF SE, Lonza, Pilot Chemical Corp, Stepan Company, Kemira Oyj, Schülke & Mayr GmbH, and Solvay are notable players of the global oilfield biocides market.