The Global Market for Oilfield Chemicals is Projected to Reach US$30.3 Billion by 2020

Surging Demand for High Value Chemicals Drives Growth in the Global Oilfield Chemicals Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, market size and demand forecasts on the global Oilfield Chemicals market. The global market for Oilfield Chemicals is projected to reach US$30.3 billion by 2020, driven by continued oil production by OPEC countries, and growing adoption of high value chemicals.

Given their application in exploration and other oil and gas field processing stages, demand for oilfield chemicals rests upon the level of oil and natural gas exploration activities, and drilling and production activities, worldwide. Various categories of oilfield chemicals that are generally used include drilling fluids, cementing chemicals, production chemicals, EOR (enhanced oil recovery) chemicals, stimulation chemicals and completion & workover fluids, with drilling fluids constituting the largest segment of the market. Growing demand for advanced drilling fluids and production chemicals with capability to improve penetration, maximize recovery from the well, and reduce drilling time and yield higher ROI is one of the key factors driving the market.

Demand for oilfield chemicals is currently in the red, owing to sharp drop in global oil prices, which has bogged down exploration and production activities in several regions across the world. Worldwide rig count dropped by more than half in 2015, which indicates reduced drilling activity in 2016. The supply-demand imbalance, geopolitical tensions and other factors that have put pressure on the oil and gas exploration and production activities, have created an unfavorable environment for the demand of oilfield chemicals. With oil supply expected to remain in surplus in the near future, and demand for oil expected to continue to remain slow, a drop in oil prices is expected to have a major impact on upstream companies as a result of major cutbacks in CAPEX for exploration and production of oil. Long term prospects for the market are however expected to remain positive led by the ever growing demand for energy, rise in drilling activity across the world, and growing interest in developing deep sea reserves. Drilling fluids will continue to retain their dominant position, with growing demand for high value and advanced water- based drilling fluids, due to rising exploration of unconventional resources and growing interest in deep and ultra deepwater projects. Focus on enhancing productivity and optimizing costs is also expected to drive demand for specialty oilfield chemicals. While aging wells trigger demand for production chemicals, new and emerging shale plays propel demand for stimulation chemicals. EOR chemicals are also garnering significant attention, thanks to the pressing need for approaches to ensure efficient extraction, and ongoing efforts to extract oils from technologically-challenging hydrocarbon geologies.

As stated by the new market research report on Oilfield Chemicals, the United States represents the largest market, worldwide. The Middle East is poised to register the fastest CAGR of 8% over the analysis period led by continued oil and gas exploration and production activity and significant number of upcoming projects across the region.

Major players covered in the report include Akzo Nobel NV, Albemarle Corp., Baker Hughes, Elementis Plc, Halliburton Company, The Lubrizol Corporation, NALCO Champion, Newpark Resources, Inc., Schlumberger Limited, M-I SWACO, Solvay SA

The research report titled “Oilfield Chemicals: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections in US$ Million for all major geographic markets such as US, Canada, Europe (UK, Russia, Kazakhstan, Norway and Rest of Europe), Asia-Pacific, Middle East and Latin America.

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