SEATTLE, Oct. 26, 2021 /PRNewswire/ -- Oilfield chemicals are specialized chemical substances that are usually used in oil & gas exploration & production activities. They are prepared for application in oilfield projects based on their suitability for the project and its environment. This means that they are prepared for any type of operating or non-operating conditions. These chemicals are being prepared in advance for ground applications, such as cold processing or hot process operations to avoid unacceptable accidents and meet the client's specifications.
The global oilfield chemicals market is estimated to account for 94,069.7 Mn in terms of value by the end of 2027, witnessing a CAGR of 5.5%.
Growing application of such chemicals from well stimulation enhanced oil recovery, and drilling fluids is primarily fuelling growth of the oilfield chemicals market. Research suggests that globally, Enhanced Oil Recovery has the potential to produce an incremental 1,070 billion barrels of oil and store up to 320 billion tons of carbon dioxide. Thus, growing such applications is expected to drive growth of the market.
Rapid growth in oil production and exploration activities is fostering growth of the oilfield chemicals market. According to the U.S. Energy Information Administration, the U.S. dry natural gas production in 2020 was about 33.5 trillion cubic feet (Tcf), an average of about 91.5 billion cubic feet per day and the second-highest annual amount recorded.
The increasing application of oilfield chemicals in the water treatment process is projected to provide lucrative growth opportunities. For instance, in February 2021, SUEZ has been awarded by Petroleum Development Oman, the oil & gas exploration and production company in the Sultanate, a Design-Build Own Operate and Maintain (DBOOM) contract for the treatment of 40,000 m3 each day of produced water coming from oil fields located in Rima, about 700 kms South of Muscat, capital of Oman. This 20-year contract is worth €120 million in total revenues.
Growing discovery of untapped oil & gas reserves is expected to bring bright market opportunities in the near future. According to the U.S. Energy Information Administration, producers in Alaska added 259 million barrels (MMBbl) of proved reserves of crude oil and lease condensate in 2019, the largest net increase in all states.
Increasing launch of new product in market by key players is a major trend in the market. For instance, in October 2021, DuPont announced the launch of Kalrez® OG193 perfluoroelastomers, a 95 durometer, FFKM compound that exhibits an excellent balance of properties for oil and gas applications. Kalrez® OG193 combines best-in-class Rapid Gas Decompression (RGD) performance and chemical resistance with good low temperature and thermal stability.
Growing number of partnerships and collaboration among key players is another major trend in the market. For instance, in November 2018, Versalis, the wholly-owned subsidiary of Italian oil and gas major Eni, has formed a joint venture with Petrochem and Mazrui Energy Services to commercialize innovative chemicals for the oil & gas industry in the Middle East. Petrochem is a subsidiary of Mazrui Energy Services, which itself is part of Mazrui International, a family-owned company based in Abu Dhabi, United Arab Emirates (UAE). Similarly, in March 2020, Evonik Corporation partnered with IMCD as its distributor for chemicals used in the oil and gas upstream, midstream, and oil sands applications in the United States and Canada. The goal of this partnership is to reach and support its solutions for North American customers.
Key players operating in the global oilfield chemicals market are Royal Dutch Shell Plc, Baker Hughes Inc., Schlumberger Ltd., Halliburton, Weatherford International Ltd, Diamoco Group, Solvay S.A, and The Egyptian Mud Engineering & Chemicals Company.
Global Oilfield Chemicals Market, By Application:
Workover & Competion (incl. Flowlines and Production Pipelines)
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