LONDON, July 15, 2015 /PRNewswire/ -- World demand to reach $34 billion in 2019
World demand for oilfield chemicals is forecast to increase nearly six percent per year to $34 billion in 2019 as technological advances and rising global energy demand drive oil and gas exploration and development activity and increase the need for higher value chemicals. Despite the decline in oil prices in the latter half of 2014 and the potential for continued volatility, the underlying factors that have led to rapid growth of the world oilfield chemical market will continue to support advances in the future. Strong marketopportunities will exist for products such as advanced drilling fluids and stimulation chemicals that can maximize well productivity, especially in unconventional resources.
Other factors besides oil prices to grow market
While falling oil prices have made many projects economically unattractive in the short term, market forces -- namely growing energy demand and the depletion of easily recoverable oil and gas -- will ensure the longer term profitability of many high cost projects and a growing market for oilfield chemicals going forward. Although advances will slow considerably, continued growth in the leading markets of the US and Canada will result from ongoing technological improvements. The challenging oil price environment will favor advances that can reduce drilling and completion costs or improve oil and gas recovery. High value products, including drilling muds and well stimulation chemicals utilized in hydraulic fracturing, which can help optimize the balance between costs and productivity, will benefit.
Drilling fluids to remain largest product segment
Drilling fluids will continue to account for the largest share of the market and will grow at a healthy pace. Offshore drilling, tight and shale drilling, and the need to optimize costs and productivity have all led to the use of more advanced and higher value oil- and water-based drilling fluids along with well stimulation chemicals, and these factors will continue to contribute to growth. Similarly, these same challenges will stimulate gains in demand for completion and workover fluids and cement. Cement demand will be supported by the need for high value cements utilized in high pressure and temperature wells, while workover fluids will see the best prospects in countries with a large and mature base of producing wells that require maintenance. Production chemicals will benefit from development of heavy or sour resources and the rising level of water production in mature fields, although the reduced emphasis worldwide on these sources of oil and gas will cause them to grow at a below average pace.
Asia/Pacific region to overtake North America
While North America will remain by far the largest regional market for oilfield chemicals, the Asia/Pacific region, led by China, will overtake North America as the fastest growing. China's vast demand for energy will continue to drive the country's exploration and development of its significant unconventional resource potential. Africa, the Middle East, and North America are also expected to register above average growth, while Europe and Central and South America trail the world average.
This upcoming industry study, World Oilfield Chemicals, presents historical demand data (2004, 2009 and 2014) plus forecasts (2019 and 2024) by product (drilling fluids, stimulation and EOR chemicals, production chemicals, completion and workover fluids, cement and additives), world region, and for 24 countries. The study also considers market environment factors, examines the industry structure, evaluates company market share and profiles 42 industry participants worldwide.
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