Rise in drilling activity to cause oilfield chemicals market to reach $40 bln

Global Industry Analysts has announced the release of a comprehensive global report on Oilfield Chemicals markets. Global market for Oilfield Chemicals is projected to reach $40 billion by 2020, driven by growing demand for energy worldwide, and the ensuing rise in drilling activity in unconventional and offshore fields.

Used in all stages of oil and gas production, ranging from well exploration and drilling, oil production to EOR applications, oilfield chemicals are expected to continue to register steady growth driven by growing demand for energy worldwide. Oil and gas remains a crucial industry that helps meet close to 55% of the world’s daily energy needs. With most of the world’s largest oil fields drying up and the age of peak oil now coming to an end, companies are turning to extract oil and gas trapped beneath more challenging and deeper basins. While the need to enhance production from mature oil wells translates to higher demand for oilfield chemicals, the increasing focus on exploration of new reserves is also expected to drive growth, especially of advanced drilling and completion chemicals.

Increased exploration and drilling activity worldwide, and the growing interest in developing deep sea reserves are together expected to sustain demand for drilling fluids. Minimizing rig time, enhancing drilling efficiency, ensuring environmental compliance, and improving productivity of oil wells, continue to remain high on the project agenda of oilfield chemical companies. Nanotechnology is expected to make a significant impact on the development of bio-degradable and eco-friendly drilling fluids. Among the various types of drilling fluids available, water-based drilling fluids are witnessing growing usage in offshore drilling activities, owing to their low level of toxicity and high cost-effectiveness as compared to other drilling fluids. Drilling fluids including synthetic based oils such as internal olefins and linear alpha olefins are being developed to help address environmental concerns associated with diesel based oil-based muds.

The rising adoption of hydraulic fracturing and horizontal drilling techniques in shale gas exploration in the United States continues to spur demand for advanced drilling fluids and fracturing fluids. Outside the United States, increasing investments in onshore and offshore drilling projects will support market growth. Exploration activity in the North Sea region of Europe holds huge opportunities for growth. The market is also set to gain from ongoing developments in the Middle East to tap heavy-oil reserves to offset the decline in light-oil production. Russia and China are also likely to witness significant improvements in drilling activity. The recent approval of some of the major projects and introduction of tax incentives to encourage companies to extract from mature fields has offset the impact of a volatile economy on the market.

Growing focus on deepwater and ultra-deepwater projects will continue to spur opportunities in the market. Stimulation chemicals are particularly expected to lead market growth largely due to the efforts made to optimize production from mature oil and gas fields. As stated by the new market research report on Oilfield Chemicals, the United States represents the largest market, while Asia-Pacific is forecast to emerge as the fastest growing market worldwide, with a CAGR of 9.3% over the analysis period. Growth in the region is led by strong offshore activity in countries like Indonesia, Malaysia and China.

Major players covered in the report include Akzo Nobel NV, Albemarle Corp, Baker Hughes, Elementis Plc, Halliburton, NALCO Champion, Newpark Resources Inc., Schlumberger Limited, M-I SWACO, and Weatherford International Ltd.

The research report titled “Oilfield Chemicals: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, issues, and strategic industry activities of companies worldwide. The report provides market estimates and projections in US dollars for all major geographic markets including the US, Canada, Europe (UK, Norway, Kazakhstan, Russia and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Middle East (Saudi Arabia, Iran and Rest of Middle East) and Latin America (Brazil, Mexico and Rest of Latin America). The global and regional markets are also analyzed by product segments such as Drilling Fluids, Cementing Chemicals, Production Chemicals, EOR Chemicals, Stimulation Chemicals, and Completion & Workover Fluids.