Specialty Oilfield Chemicals Market

Specialty Oilfield Chemicals Market Overview

The market for specialty oilfield chemicals is approximated to be USD 11.8 billion in 2022, and it is projected to reach USD 14.5 billion by 2027 at a CAGR of 4.2%.

Specialty oilfield chemicals are those chemicals that are used in the oil & gas industry in order to improve the quality of various operations, such as, efficiency and effectiveness of oil and gas extraction, processing, and transportation These chemicals are available in the market in a wide range of varities such as drilling fluids, emulsion breakers, corrosion inhibitors, etc. The specialty oilfield chemicals market is segmented on the basis of the type such as Demulsifiers, Inhibitors & Scavengers, Rheology modifiers, Friction reducers, Specialty biocides, Specialty surfactants, Pour point depressants, and Others. The specialty oilfield chemicals industry is divided by applications like production, cementing, workover & completion, drilling fluids, well stimulation, and enhanced oil recovery.

Attractive Opportunities in the Specialty Oilfield Chemicals Market

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Specialty oilfield chemicals Market Dynamics

Driver: Growth in crude oil production

Specialty oilfield chemicals are used in the oil & gas industry, in several application segments such as drilling fluids, cementing, workover & completion, etc. The rising demand for oil and related derivatives necessitates the high production of crude oil. The increase in crude and liquid oil production from 2021 to 2022 was due to higher production in OPEC countries than in non-OPEC countries. Most countries bought less Russian oil due to the Russia-Ukraine invasion, and the EU imposed an embargo on Russian crude oil. Hence, to meet the growing energy demands, the production of crude oil rises, which supports the growth of the specialty oilfield chemicals market during the forecast period.

Restraint: Geopolitical issues in the Middle east region

A major restraint in the specialty oilfield chemicals market is the political atmosphere in some of the major oil-producing countries in the Middle East countries, including Iran, Iraq, and Sudan. Libya, Yemen, and Syria are very often in a state of social or political unrest, and the local governments are forced to order frequent interruptions in the oilfield operations.

Opportunities: Exploration of new oilfields

The new oilfield discoveries in Asia Pacific, South America, and Africa pave the way for the growth of the specialty oilfield chemicals market in these regions in the oil & gas industry. Owing to the maturity of many conventional oilfields, many countries, especially countries in emerging economies, such as the Asia Pacific and South America, have increased investments in exploration and production from new reserves.

Challenges: Strict environmental regulations

The use of specialty oilfield chemicals adversely affects the soil and the aquatic life in case of deepwater exploration activities during the drilling and production processes. Thus, the production process has increased environmental concerns. The increasing concern over the impact of chemicals on the environment has led to the implementation of stringent regulatory laws for oilfield chemical manufacturers. Hence, this becomes a challenge for this market.

ECOSYSTEM

By Type, Specialty Biocides accounted for the highest CAGR during the forecast period

The oilfield is affected by redundant microbial growth at various stages such as, well stimulation, production process of crude oil, etc. The presence of such mirobial agents affects the productivity of the oilfield. Hence, specialty biocides are used either to completely eliminate or to control microbial growth.

By Application, the production segment accounted for the largest market share during the forecast period

Aliphatic, alicyclic, and aromatic hydrocarbons are some chemicals that are used in the production of crude oil. The formulation of the chemicals changes and is designed specifically for each oilfield; and within the oilfield, for each well, where the constituents may vary depending upon the time and the operating conditions. Additional chemicals are also added while transporting the oil from the load port. These chemicals support the transportation of oil and protect the wellbore after shutdown or under cold conditions, remove emulsified water, and prevent corrosion of the oil pipeline.

North America is projected to account for the highest CAGR in the Specialty oilfield chemicals market industry during the forecast period

The demand for specialty oilfield chemicals is generally driven by the oil & gas industries in this region. A rapid exploration of shale gas and oil reserves in the region, leads to increase the demands for the specialty oilfield chemicals in the forecast period.

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Key Market Players

Specialty oilfield chemicals comprises major manufacturers such as BASF SE (Germany), Ecolab (US), Clariant (Switzerland), Dow (US), Solvay (Belgium), were the leading players in the Specialty oilfield chemicals market. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the Specialty oilfield chemicals industry.

Read More: Specialty Oilfield Chemicals Companies

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Scope of the Report

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This research report categorizes the global Specialty oilfield chemicals market on the basis of Type, Application, and Region.

Specialty oilfield chemicals Market, By Type

• Demulsifiers
• Inhibitors & Scavengers
• Rheology Modifiers
• Friction Reducers
• Specialty Biocides
• Specialty Surfactants
• Pour Point Depressants
• Others

Specialty oilfield chemicals Market, By Application

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

Specialty oilfield chemicals Market, By Region

• Asia Pacific (APAC)
• North America
• Europe
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions

Recent Developments

• In February 2023, SLB acquired Gyrodata Incorporated, a global company specializing in gyroscopic wellbore positioning and survey technology.
• In December 2022, The company expanded its business position by opening a new innovation center in Kuala Lumpur.
• In September 2022, Clariant launched the D3 PROGRAM to introduce more sustainable solutions to the oil and gas industry.
• In September 2022, Clariant launched several products, such as lubricity improvers, extreme pressure/anti-wear additives, corrosion inhibitors, neutralizing agents & guide formulations using online mode.
• In October 2022, Clariant announced its expansion by launching a state-of-the-art technical center in the UAE. This center will serve customers in Europe, the Middle East, and Africa (EMEA).
• In June 2022, Ecolab unveiled the Global Intelligence Center, which helps to analyze the data using IoT-connected systems to provide real-time monitoring and measurable results.
• In March 2022, Clariant signed an agreement with the Lihuayi Group Co. Ltd. for its upcoming petrochemical production units.
• In February 2022, BASF SE started the production plant for the intermediate 2-mercaptoethanol (2-ME) at the Ludwigshafen Verbund site. 2-mercaptoethanol can be used in the production of plastics, crop protection products, oilfield chemicals (Basocorr® ME), and coatings.
• In January 2022, BASF SE partnered with China BlueChemical Limited to develop new technology for the use of CO2-rich marine gas.
• In January 2022, Clariant announced the opening of two sites in Soyo and Viana, which will bring a wide range of technical and operational capabilities to the African region.

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