Drag Reducing Agent - The Key ‘Friction Fighter’ in Crude Oil Pipelines

Growing Need to Enhance Pipeline Efficiency Augurs Well for Drag Reducing Agents Market

  • 2019-08-28
  • REP-GB-8274
  • 41 Tables
  • 166 Figures
  • 294 pages
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 Drag Reducing Agents Market
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Drag Reducing Agent - Keeping the Fuel Flowing

The global oil & gas industry has remained influenced by the volatility of prices and regulatory overhangs amidst newer business opportunities. A supply boom and strong demand for crude oil and natural gas across the globe have been enabling a highly advantaged environment of midstream & related companies. In addition, a rise in domestic crude oil production has brought significant changes in supply and demand patterns of Gulf Coast crude oil, thereby creating increasing need for pipeline capacity. Although the reliance on liquid fuels are expected to reduce as they get supplemented by bio-based fuel and electricity energy sources, it will be a number of decades before they are replaced or phased out completely. To that end, major O&G companies are turning into ‘smart drilling’ which gradually open up more sources of cheap production, and in turn contributing to expansion of midstream industry.

Amid oil bottlenecks in the key producing regions, the usage of pipeline additives such as drag reducing agents (DRAs) is ramping up, as they efficiently reduce the contact between the oil and wall of the pipe, allowing more crude to flow through. DRAs have come a long way since they were first commercialized in early 1970s, and have garnered significant traction as a reliable tool for the pipeline industry.

Drag Reducing Agent Market - Key Research Findings

drag reducing agent snapshot
  1. The global drag reducing agent market size in 2018 was ~ US$ 500 Mn.
  2. The drag reducing agent market is expected to grow at a CAGR of ~ 6% during the forecast period of 2019-2029.
  3. The exploration of new oil & gas reserves in various regions is expected to have a positive impact on the drag reducing agent market. New oil reserves will generate demand for drag reducing agents.
  4. Solely, North America is expected to account for half of the revenue shares in the drag reducing agent industry, by the end of 2029.
    • North America, attributing to its strong presence of oil & gas industry, will continue to be a prominent regional market for manufacturers of drag reducing agent.
  5. The pipeline industry is expected to remain as one of the prominent end users to invest in by drag reducing agent market players.
    • The pipeline industry has witnessed a significant growth over the recent years owing to the increase in demand of better oil & gas distribution network. Drag reducing agent is expected to benefit the pipeline industries in making them more efficient and profitable by recovering maintenance cost.

Key Factors Shaping the Drag Reducing Agent Market

Increasing Oil Production Activities Across the World

The production of oil and natural gas has witnessed steady growth in the recent years. Eastern Europe and North America are the key regions contributing to the growing production of oil and natural gas, which is expected to boost the production processes and in turn, drive the drag reducing agent market growth in the upcoming years.

Countries such as Russia, Venezuela, and Iran that have higher reserve capacities are expected to be prominent markets for the growth in sales of drag reducing agent.

Oil & Gas Industry to Surge Demand for Drag Reducing Agent

Recovering oil & gas prices, coupled with the increasing demand for oil & gas from end-use industries, such as plastics, chemicals, and polymers, are the major factors that drives the growth of the oil & gas industry. In the recent years, the oil & gas industry has witnessed a steady recovery of oil & gas prices. So, multiple manufacturers are accentuating towards expansion of new facilities and completion of withheld production plans during the downturn period.

Increasing demand for oil & gas has pushed manufactures towards development of oil & gas distribution network system. Manufacturers are focusing on a more efficient and economically-feasible method of extraction and transportation, which is a positive sign for drag reducing agent in the coming future.

Enhance Productivity Due to Growing Requirement of Drag Reducing Agent

Drag reducing agents are widely used to control the turbulence and overcome frictional losses in the pipeline. The use of drag reducing agents have allowed pipeline systems to greatly increase in traditional capacity and extend the life of existing systems. The higher flow rate that is possible on long pipelines have also increased, which makes it more efficient.

Adoption of drag reducing agents increases the pipeline throughout and reduces the delayed time for tanker loading/offloading, and helps in saving energy. Hence, the adoption of drag reducing agent is estimated to be economical for a longer run prospective. Use of drag reducing agents have allowed the users to increase the pipeline and distribution network to a considerable extent. End users have benefited from the use of drag reducing agents as it helps in improving efficiency, which is a positive sign for the expansion of business.

Increasing Number of Oil & Gas Pipeline Projects to Boost the Market

Rising global energy consumption, along with the rising oil & gas exploration activities, have resulted into increase in the number of new oil & gas pipeline projects.

Increasing number of pipeline projects in oil & gas as well as refining industries is estimated to positively influence the drag reducing agent market in the forecast period.

drag reducing agent market

Drag Reducing Agent Market Structure Analysis

  • The global drag reducing agent market represents a fairly consolidated market, where majority of the key players maintain their strategic focus on the development of solid distribution partnerships and joint ventures, targeting a firmer global footprint.
  • The drag reducing agent market has been relatively moderate in size, which remains a key factor for its dynamic competitive nature.
  • Leading manufacturers of drag reducing agent are currently prioritizing R&D and capacity expansion to resonate with the increasing oil & gas exploration activities as well as new pipeline projects.
  • Portfolio extension is also identified to remain one of the key developmental strategies adopted by manufacturers of drag reducing agent.
  • For a stronger foothold in target markets, drag reducing agent manufacturers will continue to rely on inorganic strategies, such as mergers and acquisitions.
  • Deeper understanding of the market trends and preferential shifts of end-use segments across various regions are likely to create a bottleneck for prominent players, looking forward to untapped opportunities in the drag reducing agent market.

Demand Bolstered by the Worsening Pipeline Capacity Crisis

In the face of pipeline capacity crisis, drag reducing agent has been providing a helpful push. In recent times, oil prices have recovered from the extreme lows, and drilling has picked up, potentially raising the demand for DRAs. Additionally, new pipelines are increasingly considering DRA usage during the design stage, to minimize capital and operating costs and enhance pipeline safety, as an increase in crude oil production couples with mounting concerns over the negative consequences of pipeline pressures losses during the transportation of heavy crude oil. For long, pipeline operators have kept the benefits of DRAs quiet, believing they gave them a competitive advantage, and even now, several companies still decline to disclose how much DRA they produce. However, in the view of rising demand, manufacturers are placing their bets on expanding the output, as matching up supply and demand is becoming critical to maintaining a profitable business.

Technological innovations have not only impacted the oil & gas industry, but are rapidly reaching the sub-markets. For instance, as ‘smart drilling’ promises to provide the solid ground needed to keep the O&G industry running for decades to come, DRA manufacturers are focusing on R&D initiatives and leveraging new technologies to offer the latest generation of products such as ‘nano-fluids’ with best-in-class performance potential.

North America Takes the Center Stage

The demand for DRAs is currently based on ongoing exploration of new oil & gas reserves, new advances in chemicals & petrochemicals industry, and increasing number of O&G pipeline projects. North America will continue to be at the forefront of the drag reducing agent market, given the ramping up of U.S. oil production and energy demand increasing at above-average levels, and recent bottlenecks in a number of North American pipeline routes. Furthermore, a steady and growing demand for DRAs is expected from politically volatile regions to help maintain volumes in aging pipelines, and subsequently to maintain or boost output.

* This data is only a representation. Actual data may vary and will be available in report.

North America Takes the Center Stage
North America Takes the Center Stage
North America Takes the Center Stage
North America Takes the Center Stage
  • 2014
  • 2018
  • 2022
  • 2029
  • Arrow

Does the Future Lie in Bio-based Polymers?

The ability to increase the capacity and enhance the efficiency of existing as well as planned pipelines with relatively low capital expense has a strong appeal to midstream companies, producers and shippers alike. As a result, refined-product flow improvers including drag reducing agents have gained immense momentum over the years. As pipeline remains the safest and most economical way to transport, midstream companies are focusing on catching up with growing oil production and a jump in natural gas output, and the result is likely to lead to increasing demand for DRAs.

DRAs are extensively used for optimizing pipeline efficiency and for significant reduction in the systems’ overall costs. Realizing the severe worldwide depletion of fossil fuels and increasing environmental concerns, an embrace of R&D is under way in the market and several bio-based polymers (biopolymers) such as ‘mucilage’ are being assessed as promising DRAs for the potential replacement of conventional synthetic polymers with high molecular weight.

Polymers remain the top-selling category

Demand for surfactants to pick pace

 

High applicability in crude oil transportation

Use in refined product pipelines increases rapidly

 

Oil & gas industry remains the top end user

High demand from chemicals & petrochemicals sector

 

How Growth will Unfold

An exponential rise in exploration activities and increasing number of refinery projects continue to increase the profit margins for drag reducing agent market players. However, ‘sustainability’ is no longer a niche issues of energy companies, and is gradually moving to the center of growth strategies and investment decisions; growing investments in alternative renewable energy resources and stepping efforts to reduce carbon footprints are likely to cause a disruption in O&G and chemicals value chains, and eventually representing a threat to the DRA market growth. Stakeholders are on an acquisition spree to strengthen their geographical footprint and to cover all aspects of midstream activities across the globe. Further, greater emphasis has been put on strategic partnerships with end-use verticals to gain distinct competitive edge.

 Drag Reducing Agents Market

* This data is only a representation. Actual data may vary and will be available in report.

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Overview

Drag Reducing Agent Market Assessment 2019-2029

A recent market study published by FMI on the drag reducing agent market includes global industry analysis 2014-2018 & opportunity assessment 2019-2029, and delivers a comprehensive assessment of the most important market dynamics. After conducting a thorough research on the historic as well as current growth parameters of the drag reducing agent market, the growth prospects of the market are obtained with maximum precision.

Drag Reducing Agents Market Taxonomy

The global drag reducing agent market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the readers.

By Product Type

  • Polymer
  • Surfactant
  • Suspension/ Suspended Solids

By Application

  • Crude Oil
  • Multi-phase Liquid
  • Refined Products
  • Heavy, Asphaltic Crude
  • Water Transportation

By End Use

  • Oil & Gas
  • Chemicals & Petrochemicals
  • Power & Energy
  • Agriculture
  • Others

By Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa (MEA)

What's Included

An extensive overview of the report is initiated with an executive summary of the drag reducing agent market, which includes a summary of key outcomes and statistics of the market. It also includes supply-side and demand-side trends.

In the following chapters, readers can find the market definition and taxonomy of drag reducing agent. The market definition is to help readers understand what exactly is considered as the market description and provide them with the basic information about the drag reducing agent market.

The drag reducing agent market report provides key market trends that are expected to significantly impact the market growth over the forecast period. Industry trends are provided in this section.

This section includes factors and strategies adopted by key market participants, which have a significant impact on the drag reducing agent market.

This section includes the drag reducing agent market volume projection in terms of consumption over the forecast period of 2019-2029.

This section provides readers with the pricing analysis on the regional basis over estimated years 2019, 2024 and 2029 that falls under the forecast period. This section helps the reader to analyze pricing trends owing to the necessary assumptions.

This section explains the global market value analysis and forecast for the drag reducing agent market in the forecast period of 2019-2029. This chapter includes a detailed analysis of the historical drag reducing agent market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019), and an incremental $ opportunity for the forecast period (2019–2029).

This chapter explains the key macro-economic factors as well as the forecast factor that are expected to impact the growth of the drag reducing agent market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been offered in the successive section. Other factors such as value chain, list of market participants, and production & consumption overview of the drag reducing market has been provided.

Based on product type, the drag reducing market is segmented into polymers, surfactants, and suspension. In this chapter, readers can find information about the product developments in the drag reducing agent market and market attractiveness analysis.

Drag reducing agent market is segmented into application on the basis of its uses in multiple end-use industries. Drag reducing agent is segmented into crude oil, multi-phase liquid, refined products, heavy, asphaltic crude, and water transportation.

Based on end use, the drag reducing agent market is segmented into oil & gas, chemicals & petrochemicals, power & energy, agriculture, and others segments.

This chapter explains how the drag reducing agent market will grow across various geographic regions such as North America, Latin America, Europe, South Asia, East Asia, Oceania, and Middle East & Africa.

This chapter includes a detailed analysis of the growth of the North America drag reducing agent market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on the product type, application, end use, and countries in North America.

This chapter provides the growth scenario of the drag reducing agent market in countries such as Brazil, Mexico, and the rest of Latin America. Along with this, assessment of the market across target segments has been provided.

Important growth prospects of the drag reducing agent market based on its end users in several countries such as Germany, Italy, France, Spain, U.K., Russia, Benelux, and the rest of Europe are included in this chapter.

This chapter highlights the growth of the drag reducing agent market in South Asia by focusing on India, ASEAN, and the rest of South Asia. This section also help readers understand the key factors that are responsible for the growth of the drag reducing agent market in South Asia.

In this chapter, Japan, China, and South Korea countries are the prominent countries in the Asia Pacific region that are the prime subjects of assessment to obtain the growth prospects of the East Asia drag reducing agent market. Readers can find detailed information about the growth parameters of the East Asia drag reducing agent market during the forecast period.

This chapter provides information about how the drag reducing agent market will grow in countries such as Australia and New Zealand regions during the forecast period.

This chapter highlights the growth of the drag reducing agent market in MEA by focusing on South Africa, Turkey, GCC countries, and the rest of MEA. This section also help readers understand the key factors that are responsible for the growth of the drag reducing agent market in MEA.

This chapter highlights the emerging countries in the drag reducing agent market, which shows a substantial growth rate in the market.

In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the drag reducing agent market, along with a detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Baker Hughes, LiquidPower Specialty Products Inc. (Berkshire Hathaway), The China National Petroleum Corporation, Innospec Incorporated, KMG Chemicals Inc., and Qingdao Zoranoc Oilfield Chemical Co., Ltd, among others.

This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the drag reducing agent market report.

This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the Drag Reducing Agent market.

How the research was conducted?

Primary Research

  • C - Level Executives
  • Marketing Directors
  • Product Managers 
  • Business Development Officers 
  • Production Managers
  • Procurement Heads
  • Sales Executives
  • Distributors
  • Traders 
  • Raw Material Suppliers
  • Industry Experts
  • End Users
  • Current market dynamics and challenges
  • Yesteryear trends 
  • Market characteristics
  • Market performance and growth quadrants
  • Competition structure and market structure
  • Strategic growth initiatives
  • Near-term and long-term market growth prospects
  • Market segment splits and authenticity
  • Opinions on market projections and validity of assumptions

 

Secondary Research

  • Industry Publications
    • World of Chemicals
    • Chemical Weekly
    • Chemical Engineering World, etc.
  • Industry Associations
    • The European Chemical Industry Council
    • The American Chemical Society
    • China Chemical Society
    • Indian Chemical Council
  • Factiva
  • Company Press Releases
  • Annual Reports and Investor Presentations
  • Research Papers
  • Government Websites and Publications
  • Trade Websites

Primary Interview Splits

Primary Interview Splits drag reducing agent synopsis 1

Primary Interview Splits drag reducing agent synopsis 2

Drag Reducing Agents Market Reports - Table of Contents

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