Oilfield Chemical Market

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

  • 2019-06-06
  • REP-GB-1479
  • 42 Tables
  • 150 Figures
  • 265 pages
  • Format: PDF/PPT/Excel
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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.

snapshot oilfield chemicals market

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.

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.

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.

Inhibitors account for over 40% markets shares, with gains expected to record a modest rise

Sales of H2S scavengers and de-emulsifiers are expected to grow at a relatively faster rate

Drilling & completionwill create an opportunity worth US$ 8,500 Mn in 2019

Gains also remain strong fromstimulation chemicals, accounting for nearly 30% market shares

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.

Drilling & Completion Oilfield Chemicals | Stimulation Chemicals

 Oilfield Chemical Market  Oilfield Chemical Market  Oilfield Chemical Market

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

Click Here To Know How The Growth Will Unfold

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Overview

Oilfield Chemicals Market: Global Industry Analysis 2014-2018 & Forecast 2019-2029

A recent market study published by FMI “Oilfield Chemicals Market: Global Industry Analysis 2014-2018 & Forecast 2019-2029” offers a comprehensive assessment of the most important market dynamics. After conducting thorough research on the historic as well as current growth parameters of the oilfield chemicals market, the growth prospects of the market can be obtained with maximum precision.

Increasing production of oil and the expansion of enhanced oil recovery (EOR) activities are among the top driving engines for the global market for oilfield chemicals and oil production chemicals. Furthermore, bolstering demand for crude oil products is expected to trigger the upward spiral of the oil & gas industry, which is auguring well for stakeholders in the oilfield chemicals market.

In the coming years, the demand for oilfield chemicals in the Optimization of petroleum crude oil treatment using H2S scavengers is expected to influence manufacturers’ strategies. Thereby, leading players are focusing on introducing superior performance characteristics of various types of oilfield chemicals such as corrosion inhibitors, scale inhibitors, paraffin inhibitors, lubricants, viscosfiers, de- emulsifiers, biocides, cementing chemicals, stimulation chemicals.

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

What's Included

The report commences with the executive summary of the oilfield chemicals market, which includes a summary of the key findings and key statistics of the market. It also includes the market value (US$ million) estimates of the leading segments of the oilfield chemicals market.

Readers can find the detailed taxonomy and the definition of the oilfield chemicals market in this chapter, which will help them understand the basic information about the oilfield chemicals market. This section also highlights the inclusions and exclusions, which help the reader understand the scope of the oilfield chemicals market report.

The report provides key market trends that are expected to impact the market growth significantly during the forecast period. Detailed industry trends are provided in this section, along with key market development or product innovations.

This section explains the global market value analysis and forecast for the oilfield chemicals market between the forecast periods of 2014-2029. This chapter includes the detailed analysis of the historical oilfield chemicals market, along with an opportunity analysis of its futures. Readers can also find the absolute opportunity for the current year (2018 – 2019), and an incremental opportunity for the forecast period (2019 – 2029).

This section highlights the average prices of oilfield chemicals by product type in different regions across the globe. The pricing benchmark for manufacturer-level pricing and distributor-level pricing is analysed in this section.

This section explain the global market volume analysis and forecast for the oilfield chemicals market between the forecast periods of 2019-2029.

This chapter explains the key macro-economic factors that are expected to influence the growth of the oilfield chemicals market over the forecast period. Along with macroeconomic factors, this section also highlights the opportunity analysis for the oilfield chemicals market. This chapter also highlights the key dynamics of the oilfield chemicals market, which include the drivers, restraints, and trends. Moreover, readers will understand the key trends followed by the leading manufacturers in the oilfield chemicals market.

Based on product type, the oilfield chemicals market is classified into different chemicals, inhibitors (scale inhibitors, corrosion inhibitors, and paraffin inhibitors), lubricants, de-emulsifiers, viscosfiers, gas well foamers, biocides, H2S scavengers, and others. In this chapter, readers can find information about the key trends and developments in the oilfield chemicals market and market attractiveness analysis based on the product type.

This chapter provides details about the oilfield chemicals market on the basis of its applications, and has been classified into drilling & completion, cementing chemicals, stimulation chemicals, oil production chemicals, and enhanced oil recovery chemicals. In this chapter, readers can understand the market attractiveness analysis based on application.

This chapter explains how the oilfield chemicals market will grow across various geographic regions such as North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa (MEA).

This chapter includes a detailed analysis of the growth of the North America oilfield chemicals market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the regional trends and market growth based on the end users and countries in North America.

Readers can find detailed information about several factors, such as the pricing analysis and the regional trends, which are impacting the growth of the Latin America oilfield chemicals market. This chapter also includes the growth prospects of the oilfield chemicals market in the leading LATAM countries such as Brazil, Mexico, and the Rest of Latin America.

Important growth prospects of the oilfield chemicals market based on its end users in several countries, such as Norway & Denmark, the UK, Germany, France, Russia, Romania, CIS Countries, and Rest of Europe, are included in this chapter.

China, India, Indonesia, and Thailand are among the leading countries in the Asia Pacific region, which are among the prime subjects of assessment to obtain the growth prospects of the South Asia oilfield chemicals market in this chapter. Readers can find detailed information about the growth parameters of the South Asia Oilfield Chemicals market during the period 2018-2028.

This chapter provides information about how the oilfield chemicals market will grow in the major countries in the MEA region, such as Libya & Algeria, Egypt, GCC, Turkey, Nigeria, and the Rest of MEA, during the forecast period 2019 - 2029.

In this chapter, readers can find a detailed information about the tier analysis and market concentration of the key players in the oilfield chemicals market, along with their market presence analysis by region and product portfolio.

In this chapter, readers can find a comprehensive list of all the leading stakeholders in the oilfield chemicals market, along with detailed information about each company, which include the company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Albemarle Corporation, Akzo Nobel N.V., Baker Hughes, a GE Company LLC, BASF SE, Flotek Industries, Inc., Halliburton Co., Schlumberger Limited, Solvay SA, Clariant AG, DowDuPont Inc., Chevron Phillips Chemical Company LLC, Ashland Inc., GEO Drilling Fluids, Inc., and Innospec Incorporated, among others.

This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the oilfield chemicals report.

This chapter helps readers understand the research methodology followed to obtain the various conclusions as well as important qualitative and quantitative information about the oilfield chemicals market.

How the research was conducted?

Primary Research

  • C - Level Executives
  • Marketing Directors
  • Sales Heads
  • Production Managers
  • Distributors Heads
  • Sales Executives
  • Product Manufacturers
  • Distributors
  • Traders
  • Industry Experts
  • End Users
  • Current Market Dynamics and Challenges
  • 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
    • Petrochemical Industry Journals
    • Industrial Product Review
    • Chemical & Petrochemical Magazine
  • Industry Associations
    • American Petroleum Institute (API)
    • Energy Institute (EI)
    • U.S. Energy Information Administration
    • America's oil and natural gas industry ASSOCIATION
  • Company Press Releases
  • Annual Reports and Investor Presentations
  • Research Papers
  • Government Websites and Publications
  • Trade Websites

Primary Interview Splits

Primary Research Interview Splits

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