The oilfield chemicals market was valued at US$24.330 billion in 2020 and is expected to grow at a CAGR of 5.65% over the forecast period to reach a total market size of US$35.746 billion by 2027.
Oilfield chemicals are chemical components used in the extraction of oil and gas. These are used in good drilling and production facilities to improve extraction operations by increasing the productivity and efficiency of the oil drilling process and petroleum refining, as well as to achieve optimal performance with effective oil recovery. These chemicals aid in the maintenance of a smooth-running oilfield, resulting in cost savings from delays and stoppages during drilling procedures. These chemicals block the formation of metal scales and limit the quantity of water in the oil well during exploration and drilling, resulting in an increased demand for oilfield chemicals.
The market is projected to be driven by rising product demand in various petroleum activities such as drilling, well stimulation, production, cementing, improved oil recovery, and hydraulic fracturing. Rising crude oil production, a shift toward unconventional drilling techniques, and growing operational complexity are projected to boost demand for oilfield chemicals. Workover and completion are some of the key application sectors for specialised oilfield chemicals. Many oil extraction projects have begun, with drilling and cementing as the initial stages, increasing demand for oilfield chemicals in this segment. In addition, the increased demand for technologically sophisticated cementing solutions with non-ionic and low-viscous characteristics, such as Selvol Polyvinyl Alcohol, is estimated to generate opportunities in the oilfield chemicals market. Some of the raw materials used in the synthetic manufacture of these chemicals include hydroxyethyl cellulose, carboxymethyl cellulose, and polyanionic cellulose. Furthermore, certain raw materials for natural goods are biological in nature, such as plants, fruits, and so on. In addition, hydroxypropyl cellulose and carboxymethyl hydroxyethyl cellulose are utilised in smaller amounts. The development of environmentally friendly oilfield chemicals is likely to represent a significant growth potential in the near future. However, volatility in crude oil prices and an increase in environmental concerns are anticipated to hinder the market’s growth.
Due to its growing emphasis on shale gas production and development, the North American area dominates the global oilfield chemicals market. The United States has the largest market share in the North American region, thanks to the shale gas boom, technological improvements, and increased oil exports. Shale gas production has increased dramatically in recent years, and demand for natural gas is anticipated to climb throughout the forecast period due to increased demand from Asia-Pacific emerging countries.
In the drilling sector, oilfield chemicals are used to stabilise temperatures and prevent contaminated substances from entering the drilling fluid system. They are also used as additives in drilling fluids to maintain hydrostatic pressure and clear cuttings from the wellbore. Deep-water drilling operations are projected to increase in the future, thus driving the oilfield chemicals market. Deep-water drilling operations are also projected to increase in the future. Many oil extraction projects have begun, with drilling and cementing being the early steps, thus raising demand for oilfield chemicals in this segment.
The price of crude oil went from $64.21 in 2019 to $41.84 in 2020. When oil prices fall below $50 per barrel, many crude oil producers lose money, which in turn causes a reduction in drilling activities as well as a suspension in the drilling of new wells. As a result, a decline in crude oil production has a negative impact on the use of oilfield chemicals in this segment.
COVID-19's Impact on the Oilfield Chemicals Market:
COVID-19 -19 has a detrimental impact on the market for oilfield chemicals. According to the International Energy Agency's most recent oil market projection, global oil consumption will decrease due to the impact of the new coronavirus (COVID-19) spreading throughout the world, restricting travel and broader economic activity. The IEA forecasted world oil consumption in 2020 at 99.9 million barrels per day, a decrease of about 90,000 barrels per day from 2019. This is a considerable reduction from the IEA's February estimate, which anticipated an increase in global oil consumption of 825,000 barrels per day in 2020. The decrease in the consumption of oil indirectly affected the employment of oilfield chemicals. However, the global oil production capacity is expected to increase by 5.9 million barrels per day, which will provide a new opportunity for the market.
|Market size value in 2020||US$24.330 billion|
|Market size value in 2027||US$35.746 billion|
|Growth Rate||CAGR of 5.65% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Huntsman International LLC, Stepan Company, BASF SE, Halliburton, Ashland, Gulf Coast Chemical LLC, The Dow Chemical Company, Solvay, Kraton Corporation, Thermax Limited|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the oilfield chemicals market size by 2027?
A1. The oilfield chemicals market is expected to reach a total market size of US$35.746 billion in 2027.
Q2. What are the growth prospects for the oilfield chemicals market?
A2. The global oilfield chemicals market is expected to grow at a CAGR of 5.65% over the forecast period.
Q3. What is the size of the global oilfield chemicals market?
A3. Oilfield Chemicals Market was valued at US$24.330 billion in 2020.
Q4. What factors are anticipated to drive the oilfield chemicals market growth?
A4. The oilfield chemicals market is projected to be driven by rising product demand in various petroleum activities such as drilling, well stimulation, production, cementing, improved oil recovery, and hydraulic fracturing.
Q5. Which region holds the largest market share in the oilfield chemicals market?
A5. The North American region dominates the global oilfield chemicals market due to its growing emphasis on shale gas production and development.
Huntsman International LLC
Gulf Coast Chemical LLC
The Dow Chemical Company
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