The Global Oilfield Chemicals Market Size Was Valued At USD 16.95 Billion In 2021. The Market Is Projected To Grow From USD 18 Billion In 2022 To USD 29.27 Billion By 2030, Exhibiting A CAGR Of 7.2% During The Forecast Period.

Oilfield Chemicals Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for oilfield chemicals is lower than expected in all regions compared to what it was before the pandemic. Based on our research, the world market was 4.1% smaller in 2020 than it was in 2019.

Oil chemicals are used in oil and gas exploration and drilling to make the process more productive and efficient. The oilfield chemicals market is likely to grow because more products are being used in oil operations like well stimulation, drilling, cementing, production, hydraulic fracturing, and enhanced oil recovery. More drilling projects are needed because oil production and exploration are going up quickly.

Another important group of chemicals that are mostly used in the exploration phase are drilling fluids. Drilling fluids do a lot of things, like apply hydrostatic pressure to keep formation fluids from getting into wells and keep the drill bit clean and at the right temperature to get the best penetration level.

Market Dynamics:

Latest Trends:

Eco-friendly oilfield chemicals are being used more and more, which will drive market growth.

Green solutions in the oil fields include chemicals with lower toxicity when exposed, lower flammability or flashpoint, better biodegradability, less bioaccumulation, and the ability to be used and made in a sustainable way. As people worry more about the environment, companies are making and using new products that are cleaner and less harmful to the environment. For example, Nouryon, one of the major players, released a new line of demulsifiers that make it easier for oil producers to separate crude oil from natural gas and water. The increase in shale gas and enhanced oil recovery (EOR) activities, as well as the discovery of new oil and gas resources in different places, are likely to improve growth prospects. As exploration and production companies expand their operations in high-growth economies like China, India, Brazil, Mexico, and Southeast Asia, they will need more of these chemicals to do their jobs. This is because global and regional oilfield service companies are growing and investing quickly. As governments focus more on clean energy and pass stricter laws, it is likely that more chemical companies will make oilfield chemicals that are sustainable and good for the environment.

Driving Factors:

Oil demand will rise because of petrochemicals, which will offer opportunities for market growth.

Most of the petrochemicals that are made around the world are used to make plastics like polyethylene, polypropylene, and polystyrene. In the last few decades, there has been a big rise in demand for these plastics, especially in industries that use them a lot, like food packaging and other commercial uses. Especially in developing countries in Asia-Pacific, Latin America, and Africa, this trend is likely to keep going up over the next few years. Plastics make food last longer, so less of it goes to waste, and their low weight means less fuel is used when moving goods. It has these kinds of immediate economic benefits and can help optimize resources, which is very important for the growth of emerging economies. Because the demand for petrochemical products is going up, petrochemicals are likely to be the main reason why oil is used during the forecast period. Countries that make a lot of oil are aware of this trend and are building petrochemical complexes to take advantage of the cheap raw materials they have access to. As people's incomes and living standards rise in emerging economies, the demand for petrochemicals is expected to rise as well. Because of this, the market will grow and get better.

Restraining Factors:

Changing to renewable energy will slow down the growth of the market.

During the forecast period, governments around the world are likely to take more aggressive steps to speed up the switch to renewable energy. As a result of the pandemic and the big changes it caused in the oil and gas industry, more and more countries are looking at the possibility of long-term recovery as a way to move faster towards a future with less carbon emissions.

Since the fuel sector is the main driver of oil demand, more improvements to fuel efficiency, a lot more electric vehicles on the road, and new rules to limit oil use in the power sector are expected to lower overall oil demand during the forecast period. These things are likely to lower the demand for crude oil, which will slow the growth of the industry.

Segmentation Analysis:

By Chemical Type Analysis:

Based on the type of chemical, the market is divided into demulsifiers, corrosion inhibitors, water clarifiers, biocides, scale inhibitors, paraffin inhibitors, hydrogen sulphide scavengers, gas well foamers, and others.

In the next few years, demulsifiers are expected to lead the market and grow at an annual rate of 8%. Demulsifiers are used in oil fields to separate water and oil. They change the density of the oil and make it easier to separate by stopping the pipelines from rusting. As a result, the overall cost of maintaining the equipment went down. There are some things that could be added to the widespread use of separating water and oil from crude water-oil emulsions, which would reduce the chances of adultery in the oil that was made.

During the period covered by the forecast, the segment that will grow the fastest is corrosion inhibitors. When the surface of metal is exposed to corrosive gases like carbon dioxide, oxygen, and hydrogen sulphide, corrosion inhibitors are used to protect the metal from damage.

By Application Analysis:

The market is divided into drilling, cement, stimulation, and production, based on how it is used.

In 2021, the drilling application segment had the biggest share of the market, and it may keep that share during the forecast period. The growth of the industry will be driven by the development of hydraulic fracturing and drilling, which will lead to more oil and gas operations. In the drilling part, these chemicals keep temperatures stable and stop contaminated materials from getting into the drilling fluid system. They are also added to the drilling fluid to keep the water pressure steady and stop the cutting in the wellbore. Also, improvements in technology and more drilling are likely to increase the demand for the product.

Regional Insights:

During the forecast period, the market in North America is expected to be the largest in the world. This is because drilling and hydraulic fracturing have made it easier to do more oil and gas operations. During the forecast period, the growth of the region is also expected to be boosted by new technologies and more drilling. Exploring and making more shale gas in the U.S. is likely to lead to more oil-based chemicals.

During the forecast period, the market in Asia-Pacific may grow at the fastest rate in terms of value. Industry growth is caused by an increase in the use of and demand for shale gas from different industries, rapid urbanisation, and population growth in the region. The growth of the regional market is mostly due to more exploration in India, Mainland China, the South China Sea, and countries in Southeast Asia. The Asia-Pacific region is led by the growing need for crude oil and petroleum and the huge investments made in the energy sector to help the economy grow.

During the next few years, the size of the Europe oilfield chemicals market is expected to grow by a large amount. The growth is due to more exploration and production of shale gas, as well as a rise in demand for fuel made from petroleum from the transportation industry. According to the CEIC Data, Germany produced 7.836 Barrel/Day of crude oil in December 2019. These things could help a local industry grow.

The economies of Latin America and the Middle East and Africa are growing quickly. Most of the growth in these markets is due to more oil exploration and drilling to meet the growing demand for natural gas and crude oil around the world. Because Saudi Arabia is in a strategic location and close to other OPEC countries, not many companies are interested in making things there.

Scope Analysis

Recent Development:

• May 2021 – Schlumberger and NOV teamed up to increase adoption of automated drilling solutions by drilling contractors and oil and gas operators. The strategic partnership will improve safety, enable automation of manual workflows and improve drilling efficiency.
• November 2020 -The Industrialization and Energy Services Company (TAQA) acquired a 25% stake in OPT Petroleum Technologies Company Limited to expand its oilfield chemicals capabilities.

Market Segmentation

By Chemical Type:

• Demulsifiers
• Corrosion Inhibitors
• Water Clarifiers
• Biocides
• Scale Inhibitors
• Paraffin Inhibitors
• Hydrogen Sulfide Scavengers
• Gas Well Foamers
• Others

By Applications:

• Drilling
• Cement
• Stimulation
• Production
• Others

By Companies:

• Halliburton (U.S.)
• Solvay (Belgium)
• NALCO (U.K.)
• BASF SE (Germany)
• The Lubrizol Corporation (U.S.)
• Albemarle Corporation (U.S.)
• Kemira (Finland)
• Clariant (Switzerland)
• Dow (U.S.)
• Stepan Company (U.S.)
• Croda International Plc (U.K.)
• Pon Pure Chemicals Group (India)
• Others