Oilfield Chemicals Market: Increasing Oil Reserve Exploration Activities Fueling Revenue Growth: Global Industry Analysis 2014-2018 and Opportunity Assessment 2019-2029

Oilfield Chemicals Market: Increasing Oil Reserve Exploration Activities Fueling Revenue Growth: Global Industry Analysis 2014-2018 and Opportunity Assessment 2019-2029

Oilfield Chemicals Market - Key Research Findings

Oilfield Chemicals Market - Key Research Findings

  1. Global oilfield chemicals market size in 2019 - nearly US$ 24 Bn.
  2. The oilfield chemicals market is expected to grow at a CAGR of nearly 4% over 2019-2029.
  3. North America is expected to remain among the prominent regional markets for oilfield chemicals
    • North America is among the leading regions in the oilfield chemicals market, owing to an increase in the number of shale gas exploration activities.
    • Oilfield Chemicals for increasing production capacity to cater to the increasing demand for energy need globally.
  4. Strategic expansions in high-potential regions are expected to exploit the growth prospects of the oilfield chemicals market
    • Some of the major players in the oilfield chemicals market are Albemarle Corporation, Baker Hughes, a GE Company LLC, BASF SE, Halliburton Co., Schlumberger Limited, Solvay SA, Clariant AG, DowDuPont Inc., Chevron Phillips Chemical Company LLC, Ashland Inc., and Innospec Incorporated.
    • The oilfield chemicals markets in APAC, such as India and China, are expected to benefit significantly from the growing energy needs and increased exploration activities in the region.
  5. The drilling and completion segment of the oilfield chemicals market is expected to remain among the most preferred product type segments in the oilfield chemicals market
    • The growth of this segment can be primarily attributed to the exploration of new oil reserves globally. Moreover, increasing competition has compelled manufacturers to decrease their operational costs to increase their profit margins and offer products at competitive pricing, which is expected to propel the growth of the oilfield chemicals market.

Top 3 Factors Shaping the Oilfield Chemicals Market

  • Increase in the Production of Oil

    The production of oil and natural gas has witnessed steady growth in the recent years. Eastern Europe and North America are among the key regions contributing to the growth in the production of oil and natural gas. According to the BP statistical review, Latin America holds around 17% of the total oil reserves in the world. The growing production of oil and natural gas is thus expected to boost the production processes, which is expected to drive the oilfield chemicals market in the coming years.

    Countries such as Russia, Venezuela, and Iran, which have higher reserve capacities, are expected to be prominent markets for growth in the sales of oilfield chemicals. Saudi Arabia and UAE are among the leading producers of oil and gas in the Middle East region, and are expected to provide lucrative opportunities for the growth of the oilfield chemicals market over the forecast period.

  • Exploration of New Oil Reserves

    Exploration activities of oil and natural gas are reported to have increased in the recent years owing to the increasing demand for oil and natural gas from developing countries.

    The exploration of new oil reserves in various regions is expected to have a positive impact on the oilfield chemicals market. New oil reserves are expected to generate the demand for oilfield chemicals, which will, in turn, create a platform for the growth of the oilfield chemicals market in the coming years

    • In 2018, a new discovery of oil deposits – located off the coast of Bahrain – is estimated to contain around 80 billion barrels of tight oil and gas reserves of 20 trillion cubic feet
    • In 2017, Oil and Natural Gas Corporation made a significant discovery of oil reserves in the Arabian Sea. These reserves are estimated to contain 29.7 million tons of oil and oil-equivalent gas
    • In 2016, the U.S. Geological Survey announced the exploration of oil and gas deposits located in West Texas. This deposit was expected to contain 20 million barrels of oil and 16 trillion cubic feet of natural gas
  • Geopolitical Development & Awareness Regarding Safe Operations

    At the global level, steady growth is anticipated in the oil industries owing to the demand for gasoline and fuels in the market. These products are expected to witness remarkable growth during the forecast period.

    Large amounts of fuel additives are utilized in the manufacturing of crude oil. These additives act as the backbone of the oil & gas sectors across the globe. Refineries strive for reliability & processing flexibility to decrease operational and processing cost.

    In order to fulfil the demand for crude oil products, vendors have increased their refinery capacities. For example, in the recent years, PDVSA and PETROBRAS have increased their refining capacities

    Crude oil production capacity in refineries increased from 3M bbl. per day in 2004 to 6M bbl. per day

Oilfield Chemicals Market Structure Analysis

  • The global oilfield chemicals market is a moderately fragmented market, with a number of major market players and regional players
  • Some of the prominent companies in the oilfield chemicals market include Albemarle Corporation, Baker Hughes, a GE Company LLC, BASF SE, Halliburton Co., Schlumberger Limited, Solvay SA, Clariant AG, DowDuPont Inc., Chevron Phillips Chemical Company LLC, Ashland Inc., and Innospec Incorporated, among others
  • Most of the key players maintain a strategic focus on the development of distribution partnerships and agreements for global expansion
  • Some of the top manufacturers that contribute a high revenue share in the oilfield chemicals market are BASF SE, Halliburton Co., Schlumberger Limited, Solvay SA, Clariant AG, and DowDuPont Inc.

A Rise in O&G Supply – A Bane for Oilfield Chemicals Industry

Collapse in oil prices has challenged the economics of oilfield chemicals producers and suppliers. Reducing cost while improving productivity, amid increased consumables cost and low contract rates in service-related operations, meant low returns on investment for players in the oilfield chemicals industry.

Oilfield production chemicals have witness significant growth in recent past and is expected to show promising growth opportunities in near future. From product perspective, paraffin inhibitors and biocides are expected to show significant growth potential.

Market Set to Grow 1.4X between 2019 and 2029

The oilfield chemicals market witnessed a slump with the improving oil price environment in the recent past. However, increase rate of drilling, completion, and production of resources has sustained the margin profile of oilfield chemicals producers.

Emerging Markets – Sustained Gains with Latent Opportunities

North America continues to be the goldilocks zone for oilfield chemicals market. Rapid changes in the business dynamics, particularly in the capital-intensive offshore projects and competitive hydraulic fracturing, have resulted in higher operational agility and scalability-driven approach among players.

Gains from the oilfield chemicals market in Europe also remain modest, as the rate of performance-based contracting picks pace in the region. Key players are keeping track of the O&G value chain, considering the industry’s broader impact.

The Broader Perspective

Oilfield chemicals manufacturers are eyeing flexible investments, even as exploring new forms of partnerships and alliances, in a bid to ebb the total cost of ownership. Stakeholders in the oilfield chemicals market are eyeing strategic collaborations with service providers, as a key strategy to succeed in this upstream business landscape.

How Growth will Unfold

Barriers to recovery in the oilfield services space, including asset utilisation, industrialisation of processes, and commoditisation of fees, have a direct impact on consumption of oilfield chemicals. Demand from drilling & completion and stimulation chemicals are expected to sustain growth of the oilfield chemicals market in the foreseeable future.

OILFIELD CHEMICAL MARKET TAXONOMY

The global oilfield chemicals market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.

By Product Type

  • Inhibitors
    • Scale Inhibitors
    • Corrosion Inhibitors
    • Paraffin Inhibitors
  • Lubricants
  • De-Emulsifiers
  • Viscosfiers
  • Gas Well Foamers
  • Biocides
  • H2S Scavengers
  • Others

By Application

  • Drilling & Completion
  • Cementing Chemicals
  • Stimulation Chemicals
  • Oil Production Chemicals
  • Enhanced Oil recovery Chemicals

By Terrain Type

  • Onshore
  • Offshore

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • South Pacefic
  • Middle East & Africa

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