Oilfield Chemicals Market Expected To Reach $35.0 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research titled, “Oilfield Chemicals Market by Product and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030” 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 widely employed in the extraction of oil & gas. These compounds are commonly used in cementing, drilling, oil recovery, well stimulation, and other applications. Various chemicals are utilized at different stages of the process, starting with borehole dredging and going through production and activation, and finally borehole closing. Organic and inorganic base chemicals are frequently utilized as weighing agents to increase the specific weight of a drilling fluid. Oil generated in the oilfield usually contains a lot of water, which gets mixed in with oil during the drilling process, especially in oil exploration and wells. It's vital to separate oil from water so that it can be filtered and the corrosion of oil-transporting containers can be minimized.

Increase in demand for sophisticated drilling fluids rapid expansion of shale oil & gas exploration & production and development in deep-water & ultra-deep-water drilling projects all drive the oilfield chemicals market. Furthermore, continued actions to fulfil global energy demand result in the activation of more petroleum crude oil wells globally, increasing the demand for oilfield chemicals. Crude oil price fluctuations and rise in environmental concerns are projected to hamper the oilfield chemicals market in the near future. The advent of environmentally friendly oilfield chemicals is likely to represent a significant oilfield chemicals market growth opportunity in the foreseeable future.

On the basis of type, the corrosion & scale inhibitors segment is the most lucrative in the oilfield chemicals market, followed by the surfactants segment. Corrosion & scale inhibitors is used because of its beneficial properties. As it not only helps to keep the system clean but also minimize equipment downtime. In addition, it also helps to remove scale from oilfield water systems which takes several hours and results in costly equipment shutdown.

On the basis of application, stimulation is projected to be fastest growing segment in terms of revenue during the forecast period. Stimulation process enhances reservoir production in tight oil basins owing to which the demand for oilfield chemicals is anticipated to grow in coming years.

On the basis of region, the oilfield chemicals market is analyzed across four major regions, which include North America, Europe, Asia-Pacific, and LAMEA. The oilfield market share is analyzed across all significant regions and countries. LAMEA witnessed the highest demand for oilfield chemicals, owing to the presence of huge consumer base in Middle East. Asia-Pacific is expected to grow at fastest growth rate during the forecast period. 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.

The key players operating in the oilfield chemicals market are 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.

COVID-19 Impact on Oilfield Chemicals Market

• The COVID-19 pandemic hindered the oil demand, which has correspondingly hindered the demand for oilfield chemicals.
• The spread of COVID-19 in numerous countries halted various industrial activities, which resulted in overproduction in the oil industry. This consequently resulted into decrease in demand for drilling activities.
• The decrease in drilling activities resulted in decreased demand for drilling fluids.
• The key players operating in the global oil & gas industry are focusing on decreasing capital expenditure by deferring final investment decisions (FIDs) on new projects. ExxonMobil Corporation, for example, announced a 30% cut in capital spending on upstream operations. As a result, delays in the launch of oil and gas projects are anticipated to have an impact on demand for oilfield chemicals. The Cambo deepwater oil project in the North Sea and the Bonga Southwest / Aparo in Nigeria have both had their FIDs postponed by Royal Dutch Shell.

Key Findings Of The Study

• By product, the demuslifier segment garnered around 12.0% market share in 2020 in terms of revenue.
• On the basis of application, the cement garnered 8.4% market share in 2020 in terms of revenue, and is anticipated to continue its dominance during the forecast period.
• Region wise, Europe is expected to grow at 2.6% in terms of revenue.
• The oilfield chemicals market size is provided in terms of kilotons and $million
• 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.