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  3. Oilfield Chemicals Market Segmentation By Product - Biocides, Corrosion and Scale Inhibitors, Demulsifiers, Surfactants, Polymers, Lubricants, Hydrogen Sulfide Scavengers, Fluid Loss Additives; By Application - Production Chemicals, Drilling Fluids, Well Stimulation Fluids, Cementing Fluids, Enhanced Oil Recovery and Completion

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Oilfield Chemicals Market – Snapshot

Oilfield chemicals are specialty chemicals employed to enhance certain properties and functionalities of oil wells or reservoirs. Several services performed on oilfields rely on specialty fluids and additives. Oilfield chemicals play a vital role in the life cycle of an oil well. They are used in upstream, midstream and downstream operations of the oil industry. Manufacture of oilfield chemicals requires several raw materials, which are easily available. Production of oilfield chemicals requires moderate investments.

oilfield chemicals market

In terms of value, the global oilfield chemicals market is anticipated to expand at a CAGR of more than 7.0% from 2018 to 2026. The market has been segmented based on product and application. Based on product, the global oilfield chemicals market has been divided into biocides, corrosion and scale inhibitors, demulsifiers, surfactants, polymers, lubricants, hydrogen sulfide scavengers, fluid loss additives, and others. In certain operations such as drilling, production, stimulation, and transport in the oilfield sector, there exists a risk of corrosion and scale deposition. Inhibitors are required to be used in these operations to avoid the risk of corrosion and scale formation. In oilfield operations, prevention of growth of microorganisms is required and hence, biocides are applied periodically or continuously. Biocides kill living cells. Most biocides can be considered biostatic. Biocides are also known as anti-microbial agents, disinfectants, or antiseptics. Polymers have a wide range of properties including enhanced temperature resistance, creep resistance, fatigue resistance, chemical resistance, abrasion prevention, and dielectric properties. They are extensively used in various phases in the oil sector. Rising use of surfactants offers lucrative growth opportunities to the global oilfield chemicals market. They are used in exploration, drilling, production, well stimulation, enhanced oil recovery, and workover operations in the oilfield sector.

Based on application, the global oilfield chemicals market has been classified into production chemicals, drilling fluids, well stimulation fluids, cementing fluids, enhanced oil recovery, and workover & completion. A drilling fluid is a mixture of synthetic and natural chemical compounds used to lubricate and cool the drill bit; carry cuttings to the surface; clean the hole bottom; control formation pressures; and improve the function of the drill string and tools in the hole. Production chemicals are used for maintaining the production flow as per the production schedule. In order to increase productivity of a well, it needs to be stimulated with chemicals. In order to effectively increase productivity, specialty chemicals are used for well stimulation. Cementing fluids or additives are employed to improve cement slurry rheology. They modify the cement slurry or set the cement. Cement additives are commonly available in a powder or liquid form, which allows for a little flexibility in the method by which the cement slurry is prepared. Chemical flooding is one of the enhanced oil recovery methods, wherein different types of chemicals are used.

In terms of revenue, the drilling fluids segment accounted for a significant share of the oilfield chemicals market in 2017 and is likely to continue its dominance during the forecast period. On the other hand, the well stimulation fluids segment is anticipated to expand at the highest CAGR, in terms of both value and volume, between 2018 and 2026.

North America dominated the global oilfield chemicals market, holding more than 60% of the market share in 2017, followed by Asia Pacific and Europe. The U.S. constituted a key share of the oilfield chemicals market in North America, in terms of volume and revenue, in 2017 and is likely to continue its dominance during the forecast period. Increase in investments in unconventional drilling activities and rapid development of shale gas fields are augmenting the demand for oilfield chemicals in the U.S. The oilfield chemicals market in North America, Asia Pacific, and Latin America is expected to expand at a high CAGR during the forecast period. The oilfield chemicals market in Europe is projected to witness sluggish growth between 2018 and 2026.

Increase in crude oil production has driven oilfield operations such as drilling, cementing, production, workover and completion, and well stimulation. Thus, the demand for drilling fluids, cementing fluids, production chemicals, workover and completion chemicals, and well stimulation chemicals is estimated to increase with rise in crude oil production. Rise in the development of unconventional oilfields across the world is likely to propel the global market for oilfield chemicals in the near future.

Oilfield chemicals contaminate the surface water, groundwater, and soil if they are inappropriately disposed. They release potentially hazardous materials such as acids and solvents, affecting the human health as well as environment. A wide variety of chemicals are utilized in treating oil, gas, and the water collected from reservoirs. This treated water contains several chemicals that can cause serious damage to flora and fauna on disposal. These environment-related concerns are likely to restrict the global oilfield chemicals market during the forecast period.

The report comprises profiles of major companies operating in the global oilfield chemicals market. Key players operating in the global market are Baker Hughes (A GE Company), Halliburton, Solvay S.A., BASF SE, Schlumberger Limited, Newpark Resources Inc., AkzoNobel N.V., Albemarle Corporation, The Dow Chemical Company, Gumpro Drilling Fluids Pvt Ltd, Kao Chemicals, Chemiphase, Jiaxing Midas Oilfield Chemical Mfg. Ltd, Thermax global, and Imperial Oilfield chemicals Pvt Ltd.

Oilfield Chemicals Market - Overview

Oilfield chemicals are used to increase productivity and process efficiency and thereby reduce operating costs. These chemicals play an important role in minimizing maintenance costs. Oilfield chemicals are applied throughout the lifecycle of an oil well. The lifecycle comprises drilling, cementing, production, stimulation, workover and completion, and transportation.

In terms of volume, the surfactants product segment accounted for more than 30% share of the global oilfield chemicals market in 2017. Market share of the segment is expected to increase marginally by the end of the forecast period. Surfactants are used in almost all oilfield operations, from exploration to production and workover. They are used to lower tension between liquid molecules and provide wetting/foaming, dispersing, detergency, and reduction in viscosity. In terms of application, the drilling fluids segment held major share of the market in terms of value in 2017. This trend is likely to continue throughout the forecast period. In terms of volume, the well stimulation fluids segment held prominent share of the market in 2017. The segment is projected to expand at a rapid pace in terms of value and volume during the forecast period.

North America constituted significant share of the market in 2017 in terms of value and volume. The U.S. is a highly lucrative country for oilfield chemicals. North America is estimated to continue its dominance throughout the forecast period. The market in the region is anticipated to expand at a significant pace in the near future.

This report analyzes and forecasts the market for oilfield chemicals at the global and regional level. The market has been forecast based on revenue (US$ Mn) and volume (kilo tons) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global oilfield chemicals market. It also covers impact of these drivers and restraints on demand for oilfield chemicals during the forecast period. The report also highlights opportunities in the oilfield chemicals market at the global and regional level. The report also provides list of trade names of oilfield chemicals, and list of oilfield chemical products used for different applications.

The report includes detailed value chain analysis, which provides a comprehensive view of the global oilfield chemicals market. Porter’s Five Forces model for the oilfield chemicals market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein product type and application are benchmarked based on their market size, growth rate, and general attractiveness. The study also includes pricing analysis based on type, region, and key players.

The study provides a decisive view of the global oilfield chemicals market by segmenting it in terms of product and application. In terms of product type, the oilfield chemicals market has been classified into biocides, corrosion and scale inhibitors, demulsifiers, surfactants, polymers, lubricants, hydrogen sulfide scavengers, fluid loss additives, and others. Based on application, the oilfield chemicals market has been divided into production chemicals, drilling fluids, well stimulation fluids, cementing fluids, enhanced oil recovery, and workover & completion. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for oilfield chemicals in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The global oilfield chemicals market has been analyzed in terms of revenue (US$ Mn) and volume (kilo tons). Market size has been provided in terms of global, regional, and country level market.

The report comprises profiles of major companies operating in the global oilfield chemicals market. Key players functioning in the oilfield chemicals market include Baker Hughes (A GE Company), Halliburton, Solvay S.A., BASF SE, Schlumberger Limited, Newpark Resources Inc., AkzoNobel N.V., Albemarle Corporation, The Dow Chemical Company, Gumpro Drilling Fluids Pvt. Ltd, Kao Chemicals, Chemiphase, Jiaxing Midas Oilfield Chemical Mfg. Ltd, and Imperial Oilfield Chemicals Pvt. Ltd.

Oilfield Chemicals Market, by Product

  • Biocides
  • Corrosion & Scale Inhibitors
  • Demulsifiers
  • Surfactants
  • Polymers
  • Lubricants
  • Hydrogen Sulfide Scavengers
  • Fluid Loss Additives
  • Others (Clay Stabilizer etc.)

Oilfield Chemicals Market, by Application

  • Production Chemicals
  • Drilling Fluids
  • Well Stimulation Fluids
  • Cementing Fluids
  • Enhanced Oil Recovery
  • Workover & Completion

Oilfield Chemicals Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Norway
    • U.K.
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Rest Of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • Iran
    • Nigeria
    • Rest of MEA

Key Takeaways

  • Demand for oilfield chemicals is anticipated to be high from 2019 owing to the positive scenario related to drilling activities
  • Well stimulation fluids are estimated to exhibit significant growth rate during the forecast period. Well stimulation fluids are used to boost the productivity of an oil well.
  • Drilling fluids application segment of the oilfield chemicals market held major share of the market in terms of value, while well stimulation fluids accounted for prominent share in terms of volume in 2017
  • Demand for oilfield chemicals is directly dependent on upstream, downstream, and midstream operations of the oilfield sector. Demand for oilfield chemicals is directly proportional to drilling, production, well stimulation, and workover and completion activities.
  • North America accounted for significant share of the oilfield chemicals market in 2017 due to the rise in development of unconventional oil and gas fields in the region
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