Asia-Pacific Oilfield Chemicals Market Size, Share, Opportunities, And Trends By Application (Enhanced Oil Recovery (EOR), Drilling, Production, Stimulation, Cementing, Others), By Type (Biocide, Corrosion And Scale Inhibitor, Demulsifier, Polymer, Surfactant, Other Chemical Types), And By Country - Forecasts From 2023 To 2028

The chemical elements of different compounds used in the extraction activities of oil and gas are oilfield chemicals. They are used to enhance these operations by boosting the productivity and efficiency of the oil drilling and petroleum refining processes. The transportation industry's rising demand for petroleum-based goods, rising shale gas exploration and production, and improvements in deep drilling operations are the main drivers of the oilfield chemicals market. The increase in demand for petroleum-based products can be attributed to Vehicle propulsion, building heating, and electricity generation since these activities primarily rely on petroleum-based products. The need for more crude oil and diesel products will increase oil drilling activities which will result in additional consumption of oilfield chemicals to be employed in drilling fluid systems to maintain temperature stability throughout drilling operations. This will lead to an increase in the need for chemicals known as oilfield surfactants, which are used to lower the surface friction and tension between fluids and solids. Therefore, the consumption of oil and gas company products across different countries in the region will propel the growth of the Asia-Pacific oilfield chemicals market over the forecast period.

Market Drivers

The demand for petrol and diesel in the transportation sector

Diesel and Petrol are some products manufactured by oil and gas companies that are extensively consumed fuels in the automotive sector. The Union Ministry of Petroleum and Natural Gas in India revealed that the average daily consumption of petroleum in India amounted to 5 million barrels and is increasing at 3%, 2% faster than the worldwide consumption rates in October 2022. In addition, the U.S. Energy Information Administration reported that the average daily consumption of gasoline in South Korea reached 227.98 barrels in 2021. The rise in vehicle purchases and the increase in transportation infrastructure across countries in the Asia Pacific region are facilitating the expansion of transportation activities in the region consequently increasing the demand for petrol and diesel consumption. Since the development of electric vehicles is presently in its initial phase, petroleum and diesel fuels are expected to dominate the automotive field over the forecast period. The rise in petroleum and diesel needs of a country generates the need of using various oilfield chemicals in the drilling and production activities of the oil and gas companies. Therefore, the growing need for petroleum and diesel in the Asia-Pacific region is stimulating the growth and consumption of oilfield chemicals to extract crude oil and other products to meet consumer demands. In August 2022, a US-based technology company focusing on the energy sector, Baker Hughes announced the introduction of a new oilfield services chemicals production factory in Singapore.

The increase in demand for electricity

The rise in demand for electricity in the Asia-Pacific region is promoting the growth of natural gas and oil power plants that convert natural gas and liquid fuels such as oil into electricity which is resulting in the growth of oilfield chemicals consumption. The international energy agency revealed that approximately 29,813,635 TJ amount of energy was produced using natural gas and 62,177,573 TJ amount of energy was produced using oil in the Asia Pacific region during 2020 making natural gas and oil, two of the most used sources for producing electricity in the region. In addition, the Central Electricity Authority through its Generation Expansion Planning Committee revealed that the electricity consumption per capita in India amounted to 1255 kWh in 2021. The increasing demand for electricity generates a need to enhance the oilfield activities related to the extraction of natural gas and oil which provides an opportunity for increased use of oilfield chemicals. The enormous usage of electronic products and the rising population in major economies of the Asia Pacific region are promoting the rise in electricity demand in the region. China, India, Japan, and South Korea were among the largest electricity-consuming countries in the world in 2020. Therefore, the Asia-Pacific oilfield chemicals market is expected to develop due to the increase in electricity production activities using natural gas and oil over the forecast period. 

The demand for sustainable energy sources could limit the growth of the oilfield chemicals market in the Asia Pacific region.

The international efforts by governments and organizations around the world to spread awareness about the use of sustainable energy sources to lower carbon dioxide emissions and reduce global warming are resulting in increased production and consumption of solar energy, wind energy, and other eco-friendly energies. The Ministry of New and Renewable Energy of India revealed that the aggregate installed solar capacity of India was approximately 61.97 GW in 2022. In addition, the Australian Renewable Energy Agency announced in December 2022 that it has invested about US$176 million to develop 8 batteries of large-scale to promote the production of wind and solar energy in Australia. As the oil and gas sector is extensively consumed in electricity production activities, the emergence of sustainable energy sources as competitors could slow down the production of oil and gas companies resulting in lower consumption of oilfield chemicals. However, the growth rate of these sustainable energies is lower than the consumption rate of oil and gas products suggesting that the market will not be affected drastically.

India contributes majorly to the Asia-Pacific oilfield chemicals market and is expected to grow in the forecast period.

The rising population density and the increase in natural gas and oil product consumption in India is significantly resulting in the consumption of oilfield chemicals by leading companies operating in the oil and gas production industry. Indian Oil Corporation Limited, the Gas Authority of India, and Bharat Petroleum are some of the major companies in the Indian oil and gas sector that prominently consume oilfield chemicals. In addition, the growing demand for LPG cylinders and the announcement of LPG subsidiaries by the Indian Government will further provide an opportunity for the growth of oilfield chemicals in India over the forecast period. 

Key Market Segments:

• BY APPLICATION

• • Enhanced Oil Recovery (EOR)
  • Drilling
  • Production
  • Stimulation
  • Cementing
  • Others
• BY TYPE
  • Biocide
  • Corrosion and Scale Inhibitor
  • Demulsifier
  • Polymer
  • Surfactant
  • Other Chemical Types
• BY Country

• • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Taiwan
  • Others