Global Crude Oil Flow Improvers Market – Insights
Crude oil flow improvers are also known as drag reducers and help to maintain the viscosity of crude oil during transportation and processing. Moreover, they act as additives that offer solution in all stages of crude oil extraction and also maximize production. The global crude oil flow improvers market is projected to reach US$ 3,576.4 million by 2027, witnessing a CAGR of 4.2% over the forecast period. The growth is attributed to increasing demand for crude oil worldwide.
According to The Organization of the Petroleum Exporting Countries (OPEC), the global oil consumption increased from 104 mboe/d to 268 mboe/d, accounting for an increase of 157% from 1970 to 2013. This rapid increase has been attributed to high consumption of oil in emerging economies such as India, China, and ASEAN. Furthermore, according to OPEC forecast, oil consumption is expected to increase by 49% from 268 mboe/d in 2013 to 399 mboe/d by 2040.
However, lower oil prices is expected to hamper growth of the global crude oil flow improvers market. Low oil prices leads to reduction in petroleum enterprises’ upstream profits and restrict exploration, development activities, and investments. Oil prices have witnessed a significant decline since 2014 and the total revenue of five major international oil companies (ExxonMobil Corporation, BP, Royal Dutch Shell Plc., Total S.A., and Chevron Corporation) decreased by over 40%.
Among product type, paraffin inhibitors segment accounted for the largest market share in 2018. Paraffin inhibitors are used for protection during various stages of extraction, pipelines, and refining for issues such as plugging caused due to precipitation of paraffins.
The global crude oil flow improvers market was valued at US$ 2,500.7 million in 2018, and is expected to register a CAGR of 4.2% in terms of revenue over the forecast period (2019 – 2027).
Figure 1. Global Crude Oil Flow Improvers Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
North America accounted for the largest market share in the global crude oil flow imprvers market with the value of US$ 973.8 million in 2018. According to the International Energy Agency (IEA), U.S. oil output is expected to climb to 19.6 million barrels per day (bpd) by 2024 from 15.5 million bpd in 2018. Increasing drilling activities along with cost deflation and efficiency improvements in the exploration and production activities are some of the factors that propell the growth of crude oil flow improvers market in this region.
The market in Africa is expeted to witness significant growth in the global crude oil flow improvers market over the forecast period. This is owing to increaseing focus of major players in this region to enhance their revenue and market presence. For instance, in 2016, Kenya finalised an agreement with Tullow Oil and the company’s partners Africa Oil and Maersk Oil, in order to develop a crude oil pipeline.The partners planned to take a final investment decision for the project by the end of 2018 and begin construction in 2019.
Figure 2. Global Crude Oil Flow Improvers Market Share (%), By Application, 2018
Source: Coherent Market Insights, 2018-19
Among applications, the pipeline segment holds dominant position in the global crude oil flow improvers market. Potential impediments in the pipeline can include formation and deposition of hydrates, paraffins, scales, and asphaltenes in the pipelines, as well as corrosive constituents in the flow stream that damage the pipeline components resulting in additional cost. Crude oil flow improvers play an important role in prevention of these conditions outlining importance of the flow improvers in the pipelines and during transportation.
Major players operating in the global crude oil flow improvers market include, Halliburton Company, BASF SE, LiquidPower Specialty Products Inc., Schlumberger Ltd., Baker Hughes, A GE Company, Nalco Champion, Clariant AG, Evonik Industries AG, Infineum International Limited, Innospec Inc., and others.
The ability to transfer crude oil through pipelines from wellhead to refinery without any complication is of utter importance during transportation and extraction. Crude oil deposits, which when found during these processes lead to several problems. Hence, crude oil flow improvers are used in oil pipelines to improve flow capacity and productivity of crude oil.
Increasing exploration and production activities especially in untapped regions is expected to increase the need to use products and services for efficient operation in the oil and gas industry, and therefore, increasing the demand for crude oil flow improvers.
The Red Sea is a potential host to large oil and gas fields. Exploration has been slow due to the complicated topography and the depth of the sea bed. The high depth significantly drives up the drilling costs. In March 2018, Minister of Petroleum ,announced that a global tender will be issued before the end of 2018 to explore petroleum reserves, including new sectors of the Red Sea after providing international research companies with geophysical data from Egypt's economic zone in the Red Sea.
Political instability in various regions is one of the major restraining factors in growth of global crude oil flow improvers market. Political instability has plagued African countries for decades. Algeria, Libya, and Egypt were victim to the Arab Spring Revolution and have encountered political chaos since then. The oil production as a result has fallen in all the three countries. Egypt has become a net importer and depends on Saudi Arabia to meet its crude oil requirements.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
* Browse 25 market data tables* and 15 figures* on “Crude Oil Flow Improvers Market” - Global forecast to 2027.
Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:
In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.
Coherent Market Insights desk research is based on a principle set of research techniques:
Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:
Preliminary Data Mining
The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.
Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.
Coherent Statistical model
We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:
Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.
This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:
The primary research is conducted with the ecosystem players including, but not limited to:
Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.
Talk to our research consultant to design an exclusive report as per your research needs.
We aim to fulfil client's research demands with tailored research solutions.
We aim to provide research studies in quickest turnaround time and in a much cost effective manner.
We cover each industry from supply and demand side with an aim to provide a most holistic research study.
We strive to provide most accurate and reliable research findings in our research reports.