The oilfield chemicals market size was valued at $23.4 billion in 2020, and is projected to reach $35.0 billion by 2030, growing at a CAGR of 3.2% from 2021 to 2030.
Oilfield chemicals are chemical compounds used to improve the efficacy and efficiency of activities at an oilfield site. Chemicals used in the oilfield are used in production, drilling, completion, and a variety of other operations. Oilfield chemicals are also used to purify equipment, machineries, the oil itself, and oil sites. These chemicals aid in the maintenance of a smooth-running oilfield, resulting in lower costs due to delays and stoppages during the drilling process. These chemicals prevent the production of metal scales and minimize the amount of water injected into oil wells during exploration and drilling, resulting in increase in demand for and use of oilfield chemicals.
The increase in oil production and exploration operations drive the demand for oilfield chemicals. The demand for oilfield chemicals is expected to rise during the forecast period, due to increased oil & gas exploration and advancements in deep-water drilling operations. According to the India Brand Equity Foundation (IBEF), leading oil & gas companies in India, such as Indian Oil Co., Petronet LNG, and ONGC, announced expansion plans in the domestic oil & gas industry in February 2021 to meet global consumer demand. However, rise in environmental concerns and crude oil price volatility are expected to restrain the oilfield chemicals market growth.
The oilfield chemicals market is segmented into product, application, and region. On the basis of type, it is segmented into corrosion & scale inhibitors, demulsifier, surfactants, and others. By application, the market is divided into drilling, cement, stimulation, and production. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The oilfield chemicals market share is anaIn addition, the report highlights various factors that impact the growth of the global market, such as key drivers, restraints, growth opportunities, and the role of different key players. It presents the quantitative data, in terms of both value and volume, which is obtained from the secondary sources, such as company publications, Factiva, Hoovers, OneSource, and others.
The key players operating in the oilfield chemicals market include, Albemarle Corporation, Baker Hughes Company, Croda international plc, Ecolab Inc., Halliburton, Kemira, Schlumberger, Solvay, Stepan, and The Lubrizol Corporation. Other players operating in the oilfield chemicals market are Newpark Resources Inc. and Akzo Nobel N.V.
Oilfield Chemicals Market, by Product
By product, the corrosion & scale inhibitors segment is estimated to garner highest market share in 2020, in terms of revenue. As it helps to remove scale from oilfield water systems which takes several hours and results in costly equipment shutdown. It not only helps to keep the system clean but also minimize equipment downtime.
By Product
Corrosion & Scale Inhibitors is projected as the most lucrative segment.
Oilfield Chemicals Market, by Application
On the basis of application, stimulation application is expected to lead the oilfield chemicals market during the forecast period. Stimulation process increase reservoir production in tight oil basins because of which the demand for oilfield chemicals is expected to grow in coming years.
By Application
Stimulation is projected as the most lucrative segment.
Oilfield Chemicals Market, by Region
LAMEA dominates the oilfield chemicals market due to presence of huge consume base in Middle East, Latin America etc. Asia-Pacific is the expected to register the highest CAGR in terms of growth in oilfield chemicals market. As South China Sea offers opportunities for oil & gas companies. According to the U.S. Energy Information Agency (EIA) predicted that the South China Sea has around 11 billion barrels of oil and 190 trillion cubic feet of natural gas in probable and proved reserves. Thus, there is an increase in the offshore activity in the South China Sea, propelled by the ability of its deep-water reserves and surge in energy demand in Asia. South China Sea is expected to offer lucrative opportunities to the market owing to the presence of crude oil. China has carried out deep drilling activities in the South China Sea to recover sediment core from the sea.
By Region
LAMEA holds a dominant position in 2020 and Asia-Pacific would maintain the lead over the forecast period.
It has utilized Sea Bull II drilling system. The system could assist inspection of natural gas hydrate resources from the bottom of the sea. China has deployed drilling rig in some of the parts of South China Sea. Furthermore, Philippines has also revoked ban on South China Sea energy exploration.
COVID-19 Impact on Oilfield Chemicals Market
- The COVID-19 outbreak impacted the oilfield chemicals market negatively. The market witnessed a sharp decline in demand for oilfield chemicals from various industries.
- Due to the lockdown and shutdown of production factories, the COVID-19 pandemic had a negative impact on market demand.
- The oil & gas sector has been severely affected due to the COVID-19 outbreak as it resulted in lockdown, which impacted numerous end-use industries owing to disruptions in vendor operations and supply chain. The production facilities have faced major disruptions.
- Closures of borders and export bans have led to a fluctuation in raw material prices and supplies.
Key Benefits For Stakeholders
- The oilfield chemicals report includes in-depth analysis of different segments and provides oilfield chemicals market estimations between 2021 and 2030.
- The oilfield chemicals market size is analyzed in terms of kilotons and $million
- A comprehensive analysis of the factors that drive and restrict the growth of the oilfield chemicals market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the oilfield chemicals market growth, in terms of value and volume.
- Key oilfield chemicals market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current oilfield chemicals market trends and future estimations from 2021 to 2030, which helps to identify the prevailing oilfield chemicals market opportunities.
Oilfield Chemicals Market Report Highlights
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Analyst Review
The oilfield chemicals market is anticipated to witness positive growth during the forecast period, driven by increase in oil & gas exploration activities. Oil & gas companies globally are planning to increase its investments to increase its production capacity to double its cost reductions. In addition, oilfield chemicals solution is used in a variety of end-use applications, such as onshore and offshore. These factors are projected to boost the demand for oilfield chemicals.
However, one of the most significant challenges in the oilfield chemicals market is crude oil price fluctuations and increase in environmental concern. These factors restrain the market growth. The oil & gas sector is through a period of technological advancements in exploration technologies for deep-water exploration and production activities, as well as project commercial viability. This is projected to provide growth opportunities for the oilfield chemicals market during the forecast period
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