The oilfield chemicals market refers to the production and sale of a variety of chemical products that are used in the exploration, drilling, and production of oil and gas. These chemicals are used to enhance the efficiency and productivity of oilfield operations, as well as to improve the quality and quantity of oil and gas extracted.
Some of the most common types of oilfield chemicals include drilling fluids, corrosion inhibitors, demulsifiers, scale inhibitors, and biocides. Drilling fluids, also known as drilling muds, are used to lubricate drill bits and remove cuttings during drilling operations. Corrosion inhibitors are used to protect metal equipment from the corrosive effects of oil and gas. Demulsifiers are used to separate oil and water emulsions, while scale inhibitors prevent the buildup of mineral deposits in production equipment. Biocides are used to control bacterial growth in oil and gas reservoirs.
The global oilfield chemicals market is driven by a growing demand for oil and gas, as well as an increasing need for advanced technologies and techniques to improve the efficiency and productivity of oilfield operations. The market is also influenced by a range of factors, including government regulations, environmental concerns, and the availability of raw materials.
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.
Some of the key players in the oilfield chemicals market include BASF SE, Schlumberger Limited, Halliburton, Baker Hughes, and Dow Chemical Company.
