Boost for global oilfield process chemicals market

BCC Research reveals in its new report, Oilfield Process Chemicals: Global Markets, the global market for oilfield process chemicals is expected to grow to nearly US$ 9.7 billion by 2019, with a five-year compound annual growth rate (CAGR) of 4.6%.

Enhanced oil recovery chemicals, the fastest-growing segment of the overall market, is anticipated to register a 7% CAGR.

Dynamic period

The last three years have been a dynamic period for the oil and gas industry, as exploration and production have rebounded from the lows of the 2008–2009 recession, led by the development of North American shale assets, oil sands, and the Gulf of Mexico’s deepwater resources.

These increased activities will drive growth in the oilfield process chemicals market. With 36% market share, the drilling-related chemicals category, which includes drilling fluids, workover/completion fluids and cementing additives, is the dominant segment of the overall market and is expected to grow to US$ 3.5 billion in 2019 with a CAGR of 4.6%.

However, as wells are depleted, the use of enhanced oil recovery (EOR) technology is necessary to access oil that is not easily recovered. Because many existing wells are maturing, it is predicted that EOR methods will be more widely used in the next decade. Consequently, this market, which was valued at just US$ 243 million in 2013, is expected to jump to US$ 364 million by 2019.

Demand for efficient chemicals

"The demand for more efficient chemicals will increase during the forecast period as companies meet the challenges of hotter and harsher conditions that will alter the performance characteristics and effectiveness of chemicals required to cope and work completely in these environments,” explained BCC Research chemicals analyst Andrew McWilliams.

“Many chemicals that are used today will be replaced with more multifunctional chemicals and chemical processes that enable the reuse and recycle of material generated during operation”, McWilliams added.

Based on the above projections, the greatest growth potential for oilfield process chemicals will be for those used in the exploration, drilling, and recovery of natural gas.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30072014/global-oilfield-process-chemicals-market-to-expand-1165/