Published On : Sep 25, 2017
The Global Oil and Gas Chemicals Market was valued at US$ 52.54 billion in 2016, according to a new report published by Coherent Market Insights. Oil and gas chemicals has major application in exploration of natural gas at various levels of oil & gas production process. These chemicals are used as corrosion inhibitors, emulsion breakers, cementing super plasticizers, paraffin dispersants, and drilling additives. Additionally, oil and gas chemicals find major application in drilling activities, owing to increasing need to improve and enhance the efficiency and productivity of drilling operations. They are regarded as essential fossil fuel elements, as they increase the feasibility of drilling reservoirs of gas or oil in various terrains along with easy extraction of abundant fossil fuels. Oil and gas chemicals find their use in upstream, midstream, and downstream sectors. However, slump in oil price has hampered the growth of oil and gas chemicals market.
To know the latest trends and insights prevalent in this market, click the link below:
Key Trends and Analysis of the Oil and Gas Chemicals Market:
- The Upstream segment dominated the oil and gas chemicals market in 2016, according to the stats provided by Coherent Market Insights. Oil and gas chemicals are widely used in an oilfield activities for extraction, exploration, and production of oil and natural gas. Increasing energy demand, rise in exploration, and production activities to discover untapped oil and gas reserves have boosted the upstream sector in the oil and gas chemicals market. According to Baker Hughes, the worldwide rig count in March 2016, was 1,551 which has increased to 1,985 in March 2017.
- Stimulation chemicals among the upstream chemicals are accounted to have the largest growth in the upstream oil and gas chemicals market, owing to their continuous use in an oilfield to repair and improve the productivity of well. Additionally, desalting chemicals from the midstream segment has the largest market in midstream oil and gas chemicals, owing to their significant use to remove salt from the treated oil. Similarly, petrochemicals segment from the downstream chemicals holds the largest share in the downstream oil and gas chemicals market.
- North-America is witnessed to be a giant market in oil and gas chemicals. Shale gas revolution has paved paths to increase in exploration and production activities in this region. According to the U.S. Energy Information Administration, the total shale production in the U.S. in 2014 was 13.4 trillion cubic feet, which raised up to 15.2 trillion cubic feet in 2015. Increase in offshore E&P activities in shallow and deep water has contributed to the growth of oil and gas chemicals in this region.
- Latin America, on the other hand, has proven to have bulk of new discoveries from shale, oil sand and deep water regions. However, this region is accounted to have a stagnant growth in the oil and gas chemicals market, owing to the government regulations and civilian unrest resulting in hindrance of new investments in Latin America. However, this region is projected to have a high growth in the oil and gas chemicals market over the forecast period with the second highest CAGR of 7.07% after Asia-Pacific.
- Asia-Pacific is anticipated to be the fastest-growing market in the oil and gas chemicals market over the forecast period with a CAGR of 7.36%, highest among all the regions, owing to the presence of two largely emerging economies such as China and India. India is host to large gas reserves off its east coast. Also, China's exploitable shale gas reserves are estimated at 21.8 trillion cubic meters, with proven reserves at 544.1 billion cubic meters.
- Africa has witnessed to be one of the significant growing market in oil and gas chemicals. In 2010, an estimated 85 trillion cubic feet of gas was discovered in the Rovuma basin in Mozambique. In September 2017, PetroSA and Russia based Rosgeo signed a US$ 400 million agreement to develop oil and gas reserves off the coast of South Africa. In June 2016, in Angola, state-owned Sonangol announced a gas discovery in the Kwanza Basin, which is estimated to hold 813 million barrel of oil equivalent. BP plc holds a block in the discovered field in a joint venture with Sonangol.
- Middle East is projected to have a prominent growth in the oil and gas chemicals market, owing to the presence of major oilfield countries in this region such as Saudi Arabia, Qatar, Iran, and UAE. The growing E&P and long life of the oilfield has given roots for major players to invest in Middle East. Additionly, this region is regarded as the largest exporter of oil and gas in the world especially Saudi Arabia. UAE is focusing on uplifting infrastructure and industrial development, petrochemical, airline, and renewable energy to support its primary oil industry. Occidental company has a 30 years joint venture with Abu Dhabi National Oil Company on one of the largest natural gas fields in Middle East called Al Hons Gas featuring to extract sulfur from natural gas.
Key Players in Global Oil and Gas Chemicals Market for Upstream, Midstream and Downstream
Major players operating in the global oil and gas chemicals market include Baker Hughes, Akzo Nobel NV, Elementis Plc., NALCO Champion, Newpak Resources Inc., The Lubrizol Corporation, Halliburton Company, Solvay SA, and others.
About Coherent Market Insights:
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.
Coherent Market Insights
1001 4th Ave,
Seattle, WA 98154
Email: [email protected]