Chemical components that are majorly used in oil & gas extraction operations are called as oilfield chemicals. Oilfield chemicals find applications in cementing, enhanced oil recovery, drilling fluids, well stimulation, production chemicals, and workover & completion.
Global oilfield chemicals market was valued at US$ 68,855.3 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).
Drivers
Rise in oil production and exploration activities are growing the demand for global oilfield chemicals market. Rapid expansion of shale oil & gas drilling & production and growth in deep-water & ultra-deep-water drilling projects is further expected to boost the market demand for oilfield chemicals. According to India Brand Equity Foundation (IBEF), Oil and Natural Gas Corporation (ONGC) is expected to invest US$ 2.73 Million on drilling oil and gas wells in 2019. As the country looks to cut reliance on oil imports by 10 per cent, it is expected that foreign investors will have opportunities to invest in petroleum and natural gas projects worth US$ 300 Million in India by 2022. Therefore, significant increase in oil and gas exploration project is expected to drive the demand for oilfield chemicals during the forecast period.
Chemicals from the oilfield are used in the water treatment process. The current water supply must meet rising needs as the population grows. As a result, the chemical industry employs novel water treatment techniques to make water suitable for end-use applications such as industrial, cooking, irrigation, and drinking. According to a report published by U.S.-Saudi Business Council in January 2021, Saudi Arabia has set a goal of using treated wastewater 100% of the time by 2025, with roughly 4 million m3 per day of treated wastewater expected to be available by 2030. As a result, an increase in the number of water treatment projects is predicted to raise demand for oilfield chemicals during the forecast period.
Among region, North America is expected to dominate the global market during the forecast period. This is attributed to the increase in oil & gas operations through the development of hydraulic fracturing and drilling processes. In addition, technological advance and rise in the drilling activities are expected to increase the regional market growth during the forecast period. The growing exploration and production of shale gas in the U.S. is expected to increase oil-based chemicals. For instance, according to a report by U.S. energy information administration report in 2021, U.S. dry natural gas production in 2020 was about 33.5 trillion cubic feet (Tcf), which was about 10% greater than the U.S. total natural gas consumption.
Figure 1. Global Oilfield Chemicals Market Value Share (%), By Region, 2021
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Market Restraints
Increasing environmental concerns and price fluctuation of crude oil are expected to hamper the market growth of oilfield chemicals. In order to process oil, gas, and water gathered from reservoirs, a number of chemicals are used. This treated water contains a number of chemicals that, when released, can harm vegetation and fauna. Furthermore, emergence of eco-friendly oilfield chemicals is expected to provide substantial growth opportunities in near future.
Oilfield chemicals Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2021: | US$ 68,855.3 Mn |
Historical Data for: | 2017-2021 | Estimated Year: | 2022 |
Forecast Period 2022 to 2030 CAGR: | 5.9% | Forecast Period: | 2022-2030 |
Geographies covered : |
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Segments covered: |
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Companies covered : |
Baker Hughes Inc., Halliburton, Schlumberger Ltd., Weatherford International Ltd, Diamoco Group, Royal Dutch Shell Plc, Solvay S.A, BASF, Chevron Phillips Chemical Company LLC., The Lubrizol Corporation, Clariant Specialty Chemicals, and Croda International Plc |
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Restraints & Challenges: |
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Market Trends
Rising use of eco-friendly oilfield chemicals is the key trend in the global oilfield chemicals market. Chemicals with lower exposure toxicity, reduced flammability or flashpoint, greater biodegradability, lower bioaccumulation and sustainability in both application and production are examples of green solutions in the oilfield. Amid rising environmental concerns manufacturers are adopting and developing new products that are cleaner and less damaging to the environment.
Figure 2. Global Oilfield Chemicals Market Value Share (%), By Application, 2021
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Recent Developments
Competitive Section
Major players operating in the global oilfield chemicals market include Baker Hughes Inc., Halliburton, Schlumberger Ltd., Weatherford International Ltd, Diamoco Group, Royal Dutch Shell Plc, Solvay S.A, BASF, Chevron Phillips Chemical Company LLC., The Lubrizol Corporation, Clariant Specialty Chemicals, and Croda International Plc
Frequently Asked Questions
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