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"Global Oilfield Chemicals Market was Valued at US$ 18.2 Bn in 2019 and it is Expected to Reach More than US$ 30.21 Bn by 2028, Likely to Grow with the CAGR of 6.2% During the Forecast Period."
Oilfield chemicals are chemical components that are used during oil & gas extraction operations from the oilfield such as exploration, drilling, production, and maintenance. They have used to enhance certain properties and functionalities of oil wells or reservoirs.
The market is driven by the rise in oil exploration & production activities, which is attributed to increases in the need for oilfield chemicals, demand for advanced drilling fluids, growth in deep-water drilling projects, and rapid expansion of shale oil & gas drilling & production.
Rising Demand for Petroleum-Based Fuel From the Transportation Industry is Anticipated to Drive the Demand for the Oilfield Chemicals Market During the Forecast Period
The increasing global demand for petroleum-based fuel is anticipated to drive the demand for the oilfield chemicals market during the forecast period. The oilfield chemicals are used in oil exploration & production activities helps oilfield companies achieve maximum productivity from oilfields to cater to the growing energy requirements of consumers. Furthermore, the ongoing activities such as the emergence of eco-friendly oilfield chemicals to meet the global energy demand brought more petroleum crude oil wells to production states globally. These factors are likely to drive the demand for oilfield chemicals. Additionally, the rapid expansion of shale oil & gas drilling & production boosts the demand for oilfield chemicals.
However, crude oil price fluctuations and an increase in environmental concerns are expected to hamper the market growth in the future. Furthermore, Increasing concerns for pollution of groundwater and the environment are some of the major concerns for the industry participants.
While many oilfield chemical companies have started investing significantly in R&D operations to upgrade their oilfield chemical products and offer novel chemicals to the upstream sector that satisfy every aspect of environmental regulations thus enhancing the required parameters of operations.
Demulsifiers Emerged as the Dominating Product Segment in the Oilfield Chemicals Market in 2019
Demulsifiers segment held the largest share in the global Oilfield Chemicals market in 2019 and the trend is expected to continue over the forecast period. Demulsifiers the most necessary chemicals in oilfields, as they are extensively used to separate oil from water. Thus increasing the export value of crude oil produced, which is expected to drive the market. In addition, it’s increasing application in crude oil and petrol refinery activities. However, the corrosion & scale inhibitors held the second largest market share owing to its major benefits in reducing equipment maintenance costs.
By Applications, the Drilling Fluids Segment is Projected to Highest Growth in the Market During The Forecast Period
Drilling fluids were the largest application segment for oilfield chemicals in 2019, and the demand for Drilling Fluids is anticipated to expand at a CAGR of xx % during the forecast period. The rise in the deep and ultra-deep drilling activities is expected to drive the oilfield chemicals market in the future. The oilfield chemicals are used to stabilize temperature and prevent contaminated products from entering the drilling fluid system. Additionally, they are also added as additives to the drilling fluids used to maintain the hydrostatic pressure and clear the wellbore from cuttings. The drilling activity includes the initial stages of oil extraction, as the many oil extraction projects have started in the Middle East and North America regions, thereby increasing the demand for oilfield chemicals in this segment.
North America Projected to Dominate the Oilfield Chemicals Market During the Forecast Period
North America is expected to hold more than 60% of market value share in the global Oilfield Chemicals market owing to the expansion of shale oil & gas industries in the U.S. Vast potentials in the shale reserves exploration and enhanced oil recovery are anticipated to further drive the regional market growth. The U.S. constituted a key share of the oilfield chemicals market in North America, in terms of volume and revenue, in 2019 and is likely to continue its dominance during the forecast period. An increase in investments in unconventional drilling activities and the rapid development of shale gas fields are augmenting the demand for oilfield chemicals in the U.S.
While the rising demand from applications including oil-based power plants, petro-refineries, and sludge oil treatments will fuel Middle East & Africa market. The reconstruction of several old oil wells coupled with continuous efforts to explore new oil wells is one of the key factors driving regional industry growth. The presence of deep-water reserves, corrosive offshore fields, and shale reserves in regions will boost the product demand.
However, the oilfield chemicals market in North America, Asia Pacific, and Latin America are expected to expand at a high CAGR during the forecast period. The oilfield chemicals market in Europe is projected to witness slow growth during the forecast period.
Some of the key players in the global Oilfield Chemicals Market are BASF SE, Baker Hughes, The Dow Chemical Company, Halliburton, Solvay S.A., Schlumberger Limited, Albemarle Corporation, Newpark Resources Inc., AkzoNobel N.V., Kao Chemicals, Chemiphase, Jiaxing Midas Oilfield Chemical Mfg. Ltd, Gumpro Drilling Fluids Pvt. Ltd, Imperial Oilfield Chemicals Pvt. Ltd., Ecolab Inc., and Lubrizol Corporation
Oilfield Chemicals Market Key segments:
Oilfield Chemicals Market, By Product Type
- Corrosion & Scale Inhibitors
- Hydrogen Sulfide Scavengers
- Fluid Loss Additives
- Others (Clay Stabilizer etc.)
Oilfield Chemicals Market, By Application
- Production Chemicals
- Drilling Fluids
- Well Stimulation Fluids
- Cementing Fluids
- Enhanced Oil Recovery
- Workover & Completion
Oilfield Chemicals Market,By Region
- North America
- Asia Pacific
- Middle east and Africa
- Latin America