Increasing Demand for Oil and Gas & Depleting Oil and Gas Reserves Drives the Global Oilfield Chemicals Market, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on the Oilfield Chemicals markets. The global market for Oilfield Chemicals is forecast to reach US$31 billion by the year 2018. Incessant demand for oil and gas, depleting oil and gas reserves, increasing oil costs, production activities in technically challenging environment, and a need to extract products efficiently are expected to drive growth in the Oilfield Chemicals market.
San Jose, California (PRWEB) October 26, 2012
Follow us on LinkedIn – Oilfield chemicals, utilized for oil and gas applications, such as drilling, completion and stimulation of wells, are posting significant growth, with demand expected to progress steadily in future. Growth in this sector is attributable to the declining oil and gas reserves, leading to an upsurge in exploration, development, and drilling activities in offshore, deepwater, as well as in developing regions. Traditionally, North America and Europe have been the major oilfield chemicals markets. However, the regions are witnessing a relatively slow growth at present, with growth emanating from the developing economies across the globe. The rapidly spreading industrialization and population growth in these regions are responsible for the demand shift.
While drilling fluids corner the biggest portion of the market in terms of sales, demand for chemicals used for enhanced oil recovery and well stimulation is racing upward. Increasing oil costs, production activities in technically challenging environment and a requirement to extract products efficiently constitute the primary demand driving factors for the oilfield chemicals market. The non-traditional crude oil, for instance, the heavy crudes extracted from the oil sands of Alberta and the Orinco Belt in Venezuela is witnessing increased demand. Furthermore, the availability of lighter sweet crude oil is low, and chemicals, such as emulsion breakers and corrosion inhibitors, are needed in large quantities for production.
Despite recovering from the 2008-2009 global economic crisis, the ‘Arab Spring' upsurge that began in the Middle East and North Africa in late 2010, created political unrest in the region and disturbance in the related markets. Oilfield activity took the brunt impacting the oil and gas production and supply. With a halt in oil supply from Libya and other prominent exporters, oil and gas prices rocketed skyward, consequently boosting drilling and well completion operations in other parts of the globe. Additionally, the Gulf of Mexico fallout in the same year advocated oil production from wells already existing, creating more demand for chemicals.
The United States is at the forefront in the global oilfield chemicals market, as stated by the new market research report on Oilfield Chemicals. Declining oil reserves and maturing oilfields, depletion of existing oil and natural gas wells as well as the US Government's decision in limiting the nation's dependence on oil imports drives the oilfield chemicals market. Advancements in Enhanced Oil Recovery (EOR) techniques and their usage, well simulation techniques and shale gas operations are likely to create demand for raw materials, chemical formulations, and the chemicals required for hydraulic fracturing. The Asia-Pacific is expected to exhibit the fastest growth at a CAGR of 9.5% over the analysis period. Regionally, China is expected to lead, driven by the efforts to address native energy requirements by increasing the production of oil and gas from the old oil wells.
New fields of shale gas in the Asia-Pacific region are likely to push growth in markets for cementing, stimulation, and drilling chemicals, while mitigating the demand for production chemicals. Meanwhile, the demand for oilfield chemicals in the Middle East is not as intense, owing to the hassle free extraction in the area. The market witnessed investments in the oilfield of Iraq and the Middle East region, where the development of the novel and extraction techniques is underway. Technical challenges enveloping new oilfields in Iraq are bound to require relatively more quantities of costly oilfield chemicals, thereby increasing both volume and value growth of the same in the country. In Central Asia, republic countries such as Kazakhstan are exhibiting growth.
In terms of product segments, Drilling Fluids and Stimulation Chemicals are the largest product segments. The demand for drilling fluids is attributed to the climbing rig counts as well as drilling activity. However, growth is expected to mainly emanate from Stimulation Chemicals, on account of the increasing demand from the US, Mexico, China, Canada, Russia, and several other nations. Oil production from shale also has a positive influence on the demand for oilfield chemicals.
Major players profiled in the report include Akzo Nobel NV, Albemarle Corp., Baker Hughes, Champion Technologies Inc., Elementis Plc., Enerchem International Inc., Halliburton, Nalco Company, Newpark Resources Inc., Schlumberger Limited, M-I SWACO, and Weatherford Engineered Chemistry, among others.
The research report titled “Oilfield Chemicals: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the oilfield chemicals market, current market trends, major growth drivers, the challenges faced, an overview of the petroleum and natural gas industry, recent product introductions, strategic corporate developments, and profiles of major and niche global and regional market players. The report analyzes market data and analytics in terms of value for geographic regions including the US, Canada, Europe (UK, Norway, Kazakhstan, Russia and Rest of Europe), Asia-Pacific (Including Japan), Middle East & Africa, and Latin America. Key product segments analyzed include Drilling Fluids, Cementing Chemicals, Production Chemicals, EOR Chemicals, Stimulation Chemicals, and Completion & Workover Fluids. The report also provides historic analysis for the period 2004-2009 for additional perspective.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
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