Data-driven Software Technology Empowers Oil & Gas Stakeholders

The high cost of separating hydrogen sulfide from crude oil and other petrochemicals is creating the need for efficient and cost-effective techniques to avert this challenge. Such needs are giving rise to extensive research and development studies to assist operators in gauging as to what extent their oilfields will sour with the help of insight-driven data. Stakeholders are investing in software modeling programs that use operational, planning, and survey data acquired from all the oil production units to estimate the intensity of temperature and pressure conditions, and forecast hydrogen sulfide generation, taking into account the lifetime of a reservoir.

Innovative software can predict a reservoir’s susceptibility to sourness in advance of the well completion, which serves as one of the most valuable information to reservoir operators, engineers, and technicians. For instance, in August 2018, Rawwater Engineering Company Ltd. - a specialist in oilfield reservoir souring and simulation forecasting, announced the launch of its new office in Houston, Texas, which will facilitate its stakeholders with breakthrough technologies that cater to the oil & gas industry. The company is running key research experiments with the help of DynamicTVS (Dynamic Thermal Viability Shell), an innovative predictive sourcing model, which analyzes operational and reservoir sourcing data that empowers its clients to make informed and cost-efficient decisions with context to suitable material selection, production, and counter-chemical treatment, depending upon the level of hydrogen sulfide sourness in a reservoir.

hydrogen sulfide scavengers market infographic

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Regenerative Hydrogen Sulfide Scavengers Likely to Increase Market Scope in Future

The process of hydrogen sulfide separation from crude oil has evolved from examining the aftermath of pressure and temperature upon oilfield microbiology to sourcing data related to numerous aspects such as injection temperature as per the level of sourness, cool down of an oil reservoir due to water flooding, and the scope of growth for sulfate-reducing microorganisms (SRM) with the help of data-intensive software systems. These software transformations are also influencing various practices at ground level, where companies are providing training, consultancy, and workshop programs for their clients and customers, to make them knowledgeable about the field of sourcing data from software systems, water chemistry, and measures to control the souring of crude oil.

The hydrogen sulfide scavengers market is currently valued at ~US$ 440 million, and is estimated to reach ~ US$ 655 million by the end of 2027. The market is more likely to grow for regenerative hydrogen sulfide scavengers (H2S scavengers) as compared to non-regenerative hydrogen sulfide scavengers, since the installation of regenerative H2S scavengers systems serve as an economic solution for the removal of H2S from sour gas & oil for onshore and offshore stakeholders. For example, in April 2019, Troy Corporation - a manufacturer of high-performance materials for various industries, announced the launch of Oilmate, a specialty hydrogen sulfide scavenger product that facilitates H2S extraction from oil & gas processes. This specialty product also helps minimize H2S emissions, and offers health, safety, environmental and anti-corrosion advantages to energy producers.

Strategic Partnerships to Show Positive Results for Industrial Innovations

The trend in the hydrogen sulfide scavengers market is significantly inclining towards reducing the total cost of operations, eliminating solid deposition, and mitigating downstream corrosion hassles. These changing trends have been made possible to a great extent as non-triazine scavengers provide effective H2S removal without any obstructive side effects that occur with the use of triazine-based formulations. For instance, in September 2018, Baker Hughes ? a GE company (General Electric Company) and world leader in the oil & gas industry, announced the launch of PETROSWEET HSW799, a non-triazine H2S scavenger, which is used in gas sweetening towers formulated for direct injection into gas flow lines, sour oil management in transportation lines, and rail cars as well as oil & gas transport systems.

Another development trend seen in the hydrogen sulfide scavengers market is the demand for efficient process treatment chemicals, customized engineering solutions, and the need to maximize the production of sweetened oil due to the rising demand from existing stakeholders of crude oil reserves. Such changing dynamics of the market are giving rise to multi-faceted collaborations between companies that are making developments to provide their clients and customers with quality technical solutions and new alternatives for procedure optimization. Likewise, in July 2018 Halliburton - a leading provider of products and services to energy industries, announced the acquisition of Athlon Solutions - a provider of industrial water and process treatment solutions to energy industries, to leverage the manufacturing capacity of chemicals relating to energy industries.

hydrogen sulfide scavengers market segments

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Software Automation & Additive Solutions Serve as Cost-effective and Economic Alternatives

The hydrogen sulfide scavengers market is moderately fragmented, where ~43% of the market is dominated by key players such as Schlumberger Limited, Halliburton, Baker Hughes, Nalco Champion, Hexion, Arkema S.A. and the like. These leading companies are seeking new ways to incorporate technologically cost-effective and software-based solutions to treat hydrogen sulfide in oil reserves. Thus, strategic collaborations and major acquisitions are increasing operational capacities to provide efficient gas treatment, such as the direct injection of products into separator gas outlets and offer biologically-friendly by-products.

For instance, in February 2019, Schlumberger - a global leader in oilfield services, announced a joint venture with Rockwell Automation - an American provider of industrial automation and information technology, to develop Sensia - a one-of-its-kind fully automation solution fulfilling global standards in the oil & gas industry. This solution provider offers extensive cloud-based process automation and data-driven process safety solutions.

In another example, in August 2018, The Oilfield Technology Group (OTG) of Hexion Inc. - a leading chemicals company based in Columbus, Ohio, announced the launch of a new proppant flowback control additive, which is instrumental for the oil & gas industry. This additive is an economic liquid solution meant to treat proppant flowback, and has encountered positive results in the flowback phase.

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Analysts’ View Point

Analysts of the hydrogen sulfide scavengers market have a positive outlook regarding the growth of the market. The hydrogen sulfide scavengers market is more likely to advance the most in the Asia Pacific region. There is potential for high production volumes of hydrogen sulfide scavengers in Europe and North America. Companies are collaborating with existing players in the Middle East due to the abundance of oil reservoirs and the discovery of new crude oil reserves. On the other hand, manufacturers are inclining towards regenerative hydrogen sulfide scavengers, as this serves as a relatively economic solution for the oil & gas industry.

Various innovations in the hydrogen sulfide scavengers market are being made as a result of software and data-driven technologies. Strategic partnerships and acquisitions are giving rise to technological and budget-conscious initiatives. The hydrogen sulfide scavengers market is susceptible to health-related and strict environmental regulations. However, stakeholders can overcome these restraints with the aid of hydrogen sulfide scavengers that provide biologically-friendly by-products, software-based systems, and technological developments, as well as extensive research & development initiatives.

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Hydrogen Sulfide Scavengers Market: Description

  • Hydrogen sulfide (H2S) scavengers are chemical compounds specially designed to remove hydrogen sulfide gas. These compounds are commonly used in chemical processing facilities. Hydrogen sulfide scavengers are used in crude oil, fuel, natural gas, liquefied petroleum gas, and other petroleum products.
  • OPEC members have reduced the production of petroleum products to make crude oil prices stable. Price stability is expected to enhance oilfield operations. This, in turn, is anticipated to boost the demand for hydrogen sulfide scavengers in the near future.

Key Drivers of the Hydrogen Sulfide Scavengers Market

  • According to annual statistics of OPEC, 1,214.21 billion barrels of proven crude oil reserves are currently available on a global scale. Of these, more than 82% reserves are under the control of OPEC, with the bulk of OPEC oil reserves located in the Middle East, amounting to 65.36% share of the OPEC total.
  • Increase in crude oil production enhances oilfield operations such as drilling, cementing, production, workover and completion, and well stimulation. This drives the demand for production chemicals such as hydrogen sulfide scavengers.

 Major Challenges for the Hydrogen Sulfide Scavengers Market

  • Hydrogen sulfide (H2S), known as sour gas, is a highly-toxic and pungent gas that causes issues in upstream and downstream processes. For removal of H2S gas from oil & gas streams, a non-regenerative solution is often used. One of the most commonly used scavengers is triazines, especially 1,3,5-tri-(2-hydroxyethyl)-hexahydro-s-triazine, which is largely used as a water-soluble triazine. However, the use of triazine-based scavengers often leads to fouling during the transportation and processing of oil & gas.
  • Improper disposal of non-regenerative hydrogen sulfide scavengers adversely affects human health, and poses a major threat to the environment. Industrial plants most commonly use amines to remove hydrogen sulfide. This is likely to hamper the non-regenerative segment of the global hydrogen sulfide scavengers market during the forecast period.

Lucrative Opportunities for the Hydrogen Sulfide Scavengers Market

  • Increase in the demand for oil & gas in developing economies such as China, India, and Brazil is a major factor driving the rate of drilling activities. A large number of petroleum companies are continuously exploring new oil & gas reserves. Thus, newly discovered as well as potential oil & gas reserves are estimated to create lucrative opportunities for the global hydrogen sulfide scavengers market during the forecast period.

Asia Pacific Prominent Hydrogen Sulfide Scavengers Market

  • In terms of demand, Asia Pacific dominated the global hydrogen sulfide scavengers market in 2018. According to OPEC, Asia Pacific accounts for ~60% share of both, global GDP and energy demand. Specifically for oil, the demand in Asia Pacific is 49 million barrels a day, which is 59% of the global demand, i.e. 82 million barrels a day. This is boosting the production of crude oil. Hydrogen sulfide scavengers are primarily used for the removal of hydrogen sulfide from crude oil.
  • OPEC controlled roughly 72% of the world's total crude oil reserves, and produced 42% of the world's total crude oil output in 2018. However, the U.S. was the world's largest oil-producing country in 2018, with the country producing more than 10 million barrels per day. Implementation of strict regulations on hydrogen sulfide and the presence of a large number of proven crude oil refineries in the U.S. are likely to boost the hydrogen sulfide scavengers market in the country in the near future.

Regenerative Process to Account for a Prominent Share

  • In terms of volume, the regenerative segment held a major share of the global hydrogen sulfide scavengers market in 2018. This trend is expected to continue during the forecast period.
  • In large production facilities, the most economical solution to remove H2S from the gas process stream is to install a regenerative system for treating sour gas. This factor drives the regenerative segment in the hydrogen sulfide scavengers market.
  • Triazine is a commonly used, non-regenerative, liquid H2S scavenger, employed in the oil industry. It is primarily used for removing low (<100 ppmv/mmscf) levels of H2 Triazine was the dominant sub-segment of the non-regenerative segment in 2018, in the hydrogen sulfide scavengers market.

Water-based Hydrogen Sulfide Scavengers to Account for Substantial Share

  • Among the types, water-soluble was the dominant segment of the global hydrogen sulfide scavengers market in 2018. It is likely to continue its dominance throughout the forecast period. Water-soluble hydrogen sulfide scavengers are common. They are often preferred for use in applications at temperatures below 200°F (93°C). Triazine is a common type of water-soluble H2S scavenger.

Onshore Application Lead the Industry

  • The onshore segment held a key share of the global hydrogen sulfide scavengers market in 2018. According to the Our Energy Policy Foundation, unconventional onshore oil production is expected to roughly double by 2035, to reach around 22 million barrels per day (Mbpd). It is expected to account for nearly 30% share of global crude oil production. This is estimated to boost the onshore segment, thereby propelling the global hydrogen sulfide scavengers market.

 Leading Players Actively Engage in Joint Ventures and R&D Activities

  • Key players operating in the global hydrogen sulfide scavengers market include
    • Schlumberger Limited
    • Halliburton
    • Baker Hughes 
    • Nalco Champion
    • Hexion
    • Arkema S.A
    • Lonza
    • SUEZ.
  • On February 19, 2019, Schlumberger Limited announced its plans to enter into a joint venture with Rockwell Automation to form Sensia, the first fully-integrated automation solutions provider for the oil & gas industry. The new joint venture entity would combine Rockwell Automation’s integrated control and information solutions with Schlumberger Limited’s oil and gas expertise.
  • In July 2018, Halliburton acquired Athlon Solutions, LLC, a leading provider of specialty water and process treatment chemicals, customized engineering solutions, and services. This acquisition is expected to enhance Halliburton’s capabilities to deliver innovative technical solutions to its customers and provide Halliburton with its first chemical manufacturing plant with complete reaction and blending capabilities.

Hydrogen Sulfide Scavengers Market - Scope of the Report

[353 Pages Report] TMR’s recent study on the hydrogen sulfide scavengers market provides its readers a holistic market synopsis, supported by comprehensive analysis of the global hydrogen sulfide scavengers market scenario. The TMR report on the hydrogen sulfide scavengers market analyzes the scenario for the forecast period of 2019–2027, wherein, 2018 is the base year and 2017 is the historic period. Readers are able to make long-term decisions concerning their businesses with the help of crucial findings and exclusive hydrogen sulfide scavengers market insights included in this extensive research. The study also emphasizes the key hydrogen sulfide scavengers market subtleties that are likely to influence the market in the foreseeable future. It also offers both, qualitative and quantitative insights on the future progress of the hydrogen sulfide scavengers market.

This comprehensive research study brings forth a broad outlook concerning the changing dynamics of the hydrogen sulfide scavengers market, by realizing the essential drivers, restraints, opportunities, and threats. This study also incorporates a brief SWOT analysis of the leading market players operating in the hydrogen sulfide scavengers industry, which enables readers to obtain a crystal-clear sight of the hydrogen sulfide scavengers market for the foreseeable timeframe of 2019-2027. The global market report provides vital information about major market actors in the hydrogen sulfide scavengers market, along with their key tactics, capitals, and products, which can help stakeholders in grasping valuable insights into the hydrogen sulfide scavengers market. The TMR report is branched into segments to help readers in gaining discrete insights of the hydrogen sulfide scavengers market.

Segmentation of the Hydrogen Sulfide Scavengers Market

TMR’s report on the hydrogen sulfide scavengers market facilitates information on the basis of process, type, application, and region. The study can assist readers understand the influence of the market dynamics on the progress of the hydrogen sulfide scavengers market, including the emerging trends based on these segments. The study on the hydrogen sulfide scavengers market offers the historical, present, and upcoming trends shaping the growth of the segments and market. Further, it covers value chain theory and Porter’s five forces analysis in order to explain the important growth prospects and underlying opportunities for the market players contributing to the hydrogen sulfide scavengers market.

Process

Type

Application

Region

  • Regenerative
    • Monoethanolamine (MEA)
    • Diethanolamine (DEA)
    • N-methyldiethanolamine (MDEA)
    • Diisopropylamine
    • Diglycolamine (DGA)

Water-soluble

Onshore

North America

  • Non-regenerative Triazine
    • Solid Scavengers
    • Oxidizing Chemicals
    • Aldehydes
    • Metal Carboxylates
    • Chelates

Oil-soluble

Offshore

Europe

 

Metal-based

 

Asia Pacific

 

 

 

Middle East and Africa

 

 

 

Latin America

Key Questions Answered in TMR’s Hydrogen Sulfide Scavengers Market Report

  • What are the critical challenges faced by manufacturers in the hydrogen sulfide scavengers market?
  • How much revenue will the hydrogen sulfide scavengers market generate in 2027?
  • What are the important strategies adopted by leading players in the hydrogen sulfide scavengers market?
  • What are the lucrative opportunities in the hydrogen sulfide scavengers landscape?
  • What are the major advancements witnessed across the hydrogen sulfide scavengers market?

Research Methodology

The TMR report on the hydrogen sulfide scavengers market is based on a complete evaluation of the market, supported by comprehensive primary and secondary research. Brief knowledge of the competitive scenario of the hydrogen sulfide scavengers market is backed by the assessment of different factors at a granular level. Examining the historical and present global hydrogen sulfide scavengers market, stressing on key market segments, driving factors, major contributors, and other qualitative inputs, help our seasoned analysts deduce key market predictions and calculate forecasts for the hydrogen sulfide scavengers market.

Primary research included interviews and discussions with key opinion leaders, brand managers, vendors, and distributors, which aided in understanding industry-specific data about the hydrogen sulfide scavengers market. Secondary resources that have played an important role in the production of this report consist of white papers, government statistics and research papers that shift attention to the sales prospects for hydrogen sulfide scavengers.

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