Oilfield Chemicals Market

Oilfield Chemicals Market Size

The global Oilfield Chemicals Market size was valued at USD 29.09 billion in 2022 and is projected to reach USD 39.68 billion by 2030, growing at a CAGR of 4.05% from 2023 to 2030. The rising oil production and exploration activities are primarily driving the demand for the oilfield chemicals market. Furthermore, due to improved oil and gas exploration and deep-water drilling operations, the demand for oilfield chemicals is anticipated to grow throughout the forecast period.

Some of the factors hampering market growth are further advancements in fuel efficiency, greater penetration of electric vehicles, and new regulations limiting oil consumption in the energy sector.

Analyst’s Review

Increasing demand for petroleum-based fuel from the transportation industry and increasing shale gas exploration are projected to drive the oilfield chemicals market share during the forecasted period. Based on the upward trajectory of oil consumption and production, it is anticipated that there will be a proportional increase in the production of oilfield chemicals. This growth is expected to be augmented by the emergence of new business and production opportunities, particularly those related to deep-water drilling operations, in developing countries.

For instance, major leading oil & gas companies in India, such as Petronet LNG, Indian Oil Co., and ONGC, are expanding their domestic oil & gas industry plans to fulfill global consumer demand. However, increasing concerns about eco-friendly and crude oil price instability are projected to restrain the oilfield chemicals market expansion.

Market Definition

Chemicals used in oil fields have drawn a lot of attention recently. This is due to the fact that oil field chemicals aid in hydrocarbon recovery, which has significant economic advantages. Additionally, the drilling fluids, workover, production, and completion sectors of the oil field chemicals industry are expanding. They are also used in deep-water drilling operations and other emerging production and business opportunities. Furthermore, there has been recent research exploring the potential of nanocellulose and its derivatives in the applications of oilfield chemicals for petroleum drilling and exploiting.

In order to improve the performance and efficiency of drill bits during operation, it is crucial to utilize fluids comprised of a variety of substances. The inclusion of lubricants is a key factor in mitigating friction and drag on the drill bit. Furthermore, the usage of oilfield chemicals helps to enhance rheological properties, improve filtration, and maintain thermal stability even in high-temperature conditions, resulting in bolstered performance capabilities.

Market Dynamics

The supply of crude oil has been impacted by the ongoing conflict between Russia and Ukraine, which has impacted market growth. Another issue slackening the market's progress is the research on alternative energy sources. Renewable energy sources are rising in popularity on the global market as more countries strive to achieve net zero emissions, which is expected to hamper the oilfield chemicals market growth.

The expanding population requires a matching expansion in the available water supply. To keep up with demand, the chemical industry is utilizing advanced water treatment methods, aimed to enhance water quality for a variety of end uses, including industrial applications, irrigation, cooking, and drinking. The resulting trend is driving an increase in demand for oilfield chemicals.

For instance, Saudi Arabia plans to convert its planned and existing wastewater treatment infrastructure into source water providers across all sectors to reuse more than 65% of its water by 2020 and more than 90% by 2040. Saudi Arabia's water reusing market is the third largest in the world, according to Global Water Intelligence, and is estimated to be worth over USD 3 billion.

Segmentation Analysis

The global oilfield chemicals market is segmented based on application, chemical type, and geography.

By Application

Based on the application, the market is categorized into corrosion & scale inhibitors, demulsifiers, biocides, polymers, surfactants, and others. The corrosion & scale inhibitor dominated the market and is growing at the compounded annual growth rate (CAGR) of 5.11% from 2023 to 2030. The use of oilfield chemicals is highly beneficial in reducing expensive equipment downtimes that result from scale build-up in oilfield water systems. In addition to facilitating system cleanliness, the application of such measures is expected to reduce the occurrence of equipment shutdowns thereby, augmenting the prospects of a profitable oilfield chemicals market during the projected duration.

By Chemical Type

Based on the chemical type, the oilfield chemicals market is segmented into drilling & cementing, well stimulation, production, workover & completion, and enhanced oil recovery. The drilling & cementing segment acquired 38.71% of the market share in 2022. In the drilling & cementing segment, oilfield chemicals are used to alleviate temperatures and avoid products from going toward the drilling fluid system. They are also used as the drilling fluid to preserve hydrostatic pressure and clean the borehole. In addition, advancements in technology and increased drilling activity are expected to increase the demand for the product.

Oilfield Chemicals Market Regional Analysis

Based on regional analysis, the global oilfield chemical market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

The MEA has dominated the market with 36.54% of the market share and is expected to maintain its domination during the forecast period. The demand for oilfield chemicals is expected to increase in the coming years as stakeholders seek to add value to their brands. Consequently, companies in the Middle East and African oilfield chemical markets have entered into strategic partnerships with end-use stakeholders, as they need reliable suppliers to help them succeed in the rapidly growing oilfield chemicals market.

For instance, according to the Organization of the Petroleum Exporting Countries (OPEC's) annual statistics, there are currently 1,492.6 billion barrels of approved oil reserves available worldwide. Approximately 80% of them are controlled by OPEC. This is expected to increase the demand for oilfield chemicals in the Middle East during the forecast period.

Competitive Landscape

The global oilfield chemical industry study report will provide valuable insight with an emphasis on the consolidated nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization. 

List of Key Companies in Oilfield Chemicals Market

• Nouryon
• Ashland
• Dow
• Chevron Phillips Chemical Company LLC.
• Halliburton Energy Services, Inc.
• Solvay
• Baker Hughes Company
• Champion X
• SLB
• BASF SE

Key Industry Developments

• May 2021 (Partnership): NOV and Schlumberger are in partnership to benefit drilling contractors and oil & gas operators to improve automated drilling technologies. Customers can use Schlumberger's surface and drilling automation solutions in conjunction with NOV's drilling automation platform to achieve enhanced well construction.
• November 2020 (Acquisition): Saudi Arabia's industrialization and energy services company TAQA has announced that it has agreed to acquire a 25% stake in OPT Petroleum Technologies Company Limited. OPT is a rapidly growing oilfield chemicals company headquartered in Houston with operations in Southeast Asia, China, and the UAE.

The global Oilfield Chemicals Market is segmented as:

By Application

• Corrosion & Scale Inhibitor
• Demulsifier
• Biocide
• Polymer
• Surfactant
• Others

By Chemical Type

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

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America