Asia, Middle East, and Africa Oilfield Chemicals Market Expected to Reach $27.3 Billion by 2032

According to a new report published by Allied Market Research titled, “Asia, Middle East, and Africa Oilfield Chemicals Market By Type: Regional Opportunity Analysis And Industry Forecast, 2023-2032”

The Asia, Middle East, and Africa oilfield chemicals market size valued at $18.3 billion in 2022 and is estimated to reach $27.3 billion by 2032, exhibiting a CAGR of 4.3% from 2023 to 2032.

Oilfield chemicals are used in various stages of oil & gas exploration to enhance these operations by improving productivity and efficiency of oil drilling processes. These chemicals further help in stabilizing temperature and inhibiting contamination in drilling fluid systems. In addition, they reduce the expense over stoppages & delays by maintaining smooth operating oilfields.

Oilfield chemicals such as surfactants are widely used in various applications within the oil & gas industry. They exhibit unique properties, such as surface tension reduction, that allow them to lower the surface tension between different substances, such as oil and water, and facilitate the mixing of immiscible fluids.

In the oil & gas industry, surfactants find applications in areas such as oil recovery, well stimulation, drilling, and production. Surfactants are used in Enhanced oil recovery (EOR) techniques to improve the recovery of oil from reservoirs. They can reduce the interfacial tension between oil and water, making it easier for water to displace oil and recover more oil from the reservoir.

Moreover, surfactants are utilized in well stimulation treatments, such as hydraulic fracturing or acidizing. They help to reduce the interfacial tension between the treatment fluids and the reservoir rock, enhancing fluid penetration and promoting the release of trapped oil or gas. In addition, surfactants act as surfactant gels, which help control fluid flow and improve sweep efficiency during stimulation operations.

The growth of the Asia, Middle East, and Africa oilfield chemicals industry is driven by rise in exploration & production activities resulting in increased need for oilfield chemicals, demand for advanced drilling fluids, and growth in deepwater & ultra-deepwater drilling projects.

Oilfield chemicals are used in various stages of oil & gas production such as well exploration & drilling, oil production, and enhanced oil recovery applications. Surge in demand for energy across Asia, Middle East, and Africa is expected to increase the demand for oilfield chemicals, as oil & gas remain a crucial industry that helps to meet the demand for energy needs.

Furthermore, Asia's rapid economic growth and exponentially increasing population have notably contributed toward surge in energy demand. To meet this demand, countries in Asia are actively exploring and producing oil & gas resources within their territories and in offshore areas, which, in turn, has fostered the demand for oilfield chemicals. In addition, Asia is home to significant untapped oil & gas reserves. The countries such as China, India, Indonesia, Malaysia, and Vietnam have substantial potential for hydrocarbon discoveries. Exploration & production activities focus on identifying and exploiting these resources to enhance energy security and reduce dependence on imports.

Advancements in exploration and production technologies have improved the efficiency and success rates of exploration and production activities. Techniques such as 3D seismic imaging, horizontal drilling, and hydraulic fracturing (fracking) have enabled the extraction of hydrocarbons from previously inaccessible or challenging reservoirs. Moreover, Middle East and Africa are home to some of the world's largest proven oil & gas reserves. The countries such as UAE and Kuwait possess vast hydrocarbon resources, propelling the need for extensive exploration and production activities to capitalize on these reserves.

Furthermore, many countries in the Middle East and Africa offer fiscal and contractual terms to attract investments in the oil & gas sector. These include production-sharing agreements, tax incentives, and long-term contracts that provide stability and favorable conditions for exploration and production companies. Thus, increase in focus on the exploration of new reserves and production drives the growth of the Asia, Middle East, and Africa oilfield chemicals market.

However, crude oil price fluctuations and increase in environmental concerns are expected to hamper market growth in the near future. Shale development activities, including drilling, production, and transportation of shale gas or oil, can contribute to air pollution and release of greenhouse gases. Methane, a potent greenhouse gas, can escape during drilling and production processes if not effectively controlled, contributing to climate change. In addition, the extraction and combustion of shale gas and oil can result in the release of other air pollutants such as volatile organic compounds (VOCs) and particulate matter. Moreover, shale development requires significant land use for drilling pads, access roads, pipelines, and related infrastructure. This can lead to habitat disruption, fragmentation, and loss of biodiversity in sensitive ecosystems. Fragmentation of natural habitats can further impact wildlife migration patterns and ecological balance.

On the contrary, the emergence of eco-friendly oilfield chemicals is expected to offer remunerative opportunities for the market growth in coming years.

The oilfield chemicals market is segmented into type and region. On the basis of type, it is segmented into production chemicals and integrity chemicals. Region-wise, Asia, Middle East, and Africa oilfield chemicals market share is analyzed across Asia, Middle East, and Africa.  Key players in the Asia, Middle East, and Africa oilfield chemicals industry include Dorf Ketal, BAKER HUGHES COMPANY, Croda International Plc, ChampionX, Multichem, MI Swaco, Solvay, Stepan, The Lubrizol Corporation, Clariant, Nouryon, and DYNEA.

Key Findings Of The Study

• By type, the production chemicals segment was the highest revenue contributor to the market in 2022.
• Region wise, Middle East was the highest revenue contributor, growing with a CAGR of 4.3%.