Oilfield production chemicals are the chemicals intended for specific functions in the production of crude oil. Depending on the function, oilfield production chemicals are used at various stages in oilfield production processes. Depending on the type, oilfield production chemicals have been categorized as demulsifiers, corrosion inhibitors, paraffin inhibitors, biocides, H2S scavengers, hydrate inhibitors, oxygen scavengers, water clarifiers and defoamers, among others.
The global oilfield production chemicals market is estimated to be valued at US$ 2.4 Bn by 2018 end and reach US$ 3.8 Bn by the end of 2028, expanding at a CAGR of 4.0% over the forecast period. The global oilfield production chemicals market is anticipated to represent an incremental opportunity of US$ 1.2 Bn between 2018 and 2028.
The Oilfield Production Chemicals Market is Expected to Gain Traction During the Forecast Period
Oilfield production chemicals are exclusively used in production processes in oilfields. Thus, they register high demand in the regions that dominate crude oil production. Therefore, an increase in the production of crude oil will directly contribute to the growth of the oilfield production chemicals market.
Crude oil production has reported steady growth in recent years. According to the BP statistical review, crude oil production grew by 1% from 2006 to 2016. Steady growth in production is expected to drive the demand for oilfield production chemicals in the coming years. The discovery of new reserves is also a key factor affecting the sales growth of oilfield production chemicals. The discovery of reserves in Bahrain, Arabia Sea and West Texas are among the latest examples of ongoing exploration activities. Such growth in the exploration activities is expected to generate high demand for oilfield production chemicals in the coming years.
Middle East & Africa Dominates the Global Oilfield Production Chemicals Market and Latin America is Tipped to be a High Potential Market by the End of the Forecast Period
From a regional perspective, the global oilfield production chemicals market is dominated by the Middle East & Africa region, owing to the high production of crude oil and consumption of oilfield production chemicals in GCC countries. The Middle East & Africa region is expected to witness healthy growth over the forecast period, which can mainly be attributed to the increase in crude oil production and exploration activities in GCC countries.
The demulsifiers segment is expected to have a high impact on the oilfield production chemicals market in Middle East & Africa. The growth of the oilfield production chemicals market in Middle East & Africa can be attributed to the abundant oil reserves present in the region. Most of the oilfield production chemicals are manufactured in North America, Europe and the Middle East and Asia and thus, the prices of oilfield production chemicals are relatively low in China, North America, South-East Asia & Pacific, as compared to other regions.
Moreover, Latin America is reported to register a higher growth rate over the forecast period. The high growth rate of Latin America depends on the growing production of oil and gas in countries such as Brazil and Venezuela. The oilfield production chemicals demand in Latin America is primarily met by manufacturers from North America.
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Prominent Manufacturers Hold a Key Share in the Global Oilfield Production Chemicals Market
The global oilfield production chemicals market is dominated by global manufacturers. Prominent manufacturers in the oilfield production chemicals market have been reported to hold more than half of the global oilfield production chemicals market. The regional markets are primarily dominated by the domestic manufacturers engaged in the sales of oilfield production chemicals in nearby regions. Domestic manufacturers are either acquired or collaborate with global players in the global oilfield production chemicals market and are listed under the Tier 2 category.
Prominent manufacturers hold the lion’s share in the oilfield production chemicals market and are listed under the Tier 1 category of the global oilfield production chemicals market. The remaining manufacturers who have lower sales activities and have sales limited to the local markets are listed under the Tier 3 category of the global oilfield production chemicals market.
The demand for oilfield production chemicals in different regions is totally dependent on the macro-economic factors affecting the oilfield production chemicals market in the particular region. In order to cater the effect of macro-economic factors and the competition from domestic manufacturers, bigger players in the market are focused on acquisitions or collaborations with domestic players in order to strengthen their sales networks in regional markets.
The oilfield production chemicals market is saturated with many global players and is concentrated in crude oil producing regions such as North America, Eastern Europe and the Middle East. Manufacturers are now shifting their attention towards developing and high-potential regions such as Latin America.
Some of the players reported in this study of the global oilfield production chemicals market include Baker Hughes, Ecolab Inc., Schlumberger Limited, Halliburton Company, BASF SE, Solvay SA, Akzo Nobel N.V., Clariant AG, Arkema SA, Huntsman Corporation and DowDuPont Inc., among others. Moreover, manufacturers of oilfield production chemicals have been channelizing efforts towards strengthening their production footprint and focusing on specific regions for the same to cater to regional markets. This is expected to positively impact the oilfield production chemicals market in the near future.
Oilfield Production Chemicals Market Segmentation
- Corrosion Inhibitors
- Paraffin Inhibitors
- Hydrate Inhibitors
- H2S Scavengers
- Scale Inhibitors
- Production Methods
- Storage & Transportation
- Safe Disposal
- North America
- Latin America
- Western Europe
- Eastern Europe
- South East Asia & Pacific
- Middle East and Africa