Oilfield Chemicals Market

Market Overview

The global oilfield chemicals market size was valued at USD 23.4 billion in 2022. It is projected to reach USD 34.47 billion by 2031, growing at a CAGR of 4.73% during the forecast period (2023–2031).

Oilfield chemicals enhance oilfield operations. Production, drilling, completion, and other oilfield operations use chemicals. Oilfield chemicals clean equipment, machinery, oil, and sites. These chemicals keep oilfields running smoothly, reducing drilling delays and costs. These chemicals reduce metal scales and water injected into oil wells during exploration and drilling, increasing demand for oilfield chemicals. Specialty oilfield chemicals are used most in workover and completion—hydraulic fracturing and matrix stimulation to maximize reservoir productivity. Well, design and type determine when the completion course begins. However, many actions or alternatives during a well's development affect its productivity. Completion quality can significantly affect reservoir production and save time and money. Oilfield chemicals improve oil drilling and petroleum refining by improving efficiency and productivity.

These chemicals are added to good drilling, production facilities, and workover fluids to maximize oil recovery. Chemical manufacturing and blending plants now have stricter quality controls. Advanced process control and reaction optimization have increased product reproducibility and cost-effectiveness. Packaging, inventory, distribution, in-plant safety, and environmental awareness have been improved. Oil production and exploration increase oilfield chemical demand. Due to increased oil & gas exploration and deep-water drilling, oilfield chemicals will be in demand during the forecast period. Indian oil and gas giants Indian Oil Co., Petronet LNG, and ONGC announced expansion plans to meet global consumer demand, according to the India Brand Equity Foundation (IBEF). Environmental concerns and crude oil price volatility may slow oilfield chemicals market growth.

Market Dynamics

Global Oilfield Chemicals Market Drivers

Petrochemicals to Increase Global Oil Demand

Plastics like polyethylene, polypropylene, and polystyrene use a lot of global petrochemical production. Over the past few decades, these plastics have become increasingly popular in major end-use industries like food and commercial packaging. This rising trend is expected to continue, especially in developing Asia Pacific, Latin America, and Africa. Plastics' low weight and long shelf life reduce food waste and fuel consumption. It provides immediate economic benefits and aids resource optimization, which is crucial for emerging economies. Petrochemicals will dominate oil consumption during the forecast period due to rising demand. Oil-producing nations are building petrochemical complexes to take advantage of cheap raw materials. Emerging economies' purchasing power and standard of living will increase petrochemical demand. Thus, the market grows.

Growth in Projects for Water Treatment

Oilfield chemicals treat water. Population growth requires more water. Thus, the chemical industry has developed new water treatment methods for industrial, cooking, irrigation, and drinking applications. According to the article "Treated wastewater use in Saudi Arabia: challenges and initiatives," Saudi Arabia aims to use 100% treated wastewater by 2025 and 6.8 million m3 per day by 2035. Thus, oilfield chemical demand is expected to rise as water treatment projects increase. The rising global population and government investments in oil and gas infrastructure will also boost the oilfield chemicals market growth. Key players' R&D activities are expected to boost the market growth.

Global Oilfield Chemicals Market Restraint

Transition Towards Renewable Energy

Global governments are expected to accelerate the transition to renewable energy during the forecast period. After the pandemic and its drastic effects on the oil and gas industry, more countries are considering long-term recovery to accelerate low-carbon progress. Since the fuel sector is the primary demand generator, fuel efficiency improvements, higher electric vehicle penetration, and new power sector oil consumption rules are expected to reduce oil demand during the forecast period. These factors will reduce crude oil demand, slowing industry growth: chemicals process reservoir oil, gas, and water. Chemicals in treated water can harm plants and animals. These environmental concerns will hamper the global oilfield chemicals market. This will slow the oilfield chemicals industry’s growth.

Global Oilfield Chemicals Market Opportunities

Eco-Friendly Chemicals and Strategies Growth

Key market players also focus on technological development and collaborations to create profitable opportunities in the forecast period. Eco-friendly oilfield chemicals will also boost the market growth. Environmental protection requires global eco-friendly use. Check global consumption: fast-paced production, use, and disposal. Suppose we don't switch to eco-friendly chemicals and sustainable bio-enzymes. In that case, we'll be surrounded by pollution and poisons from making, using, and disposing of these non-green products and chemicals. Solid, dry eco-friendly chemicals are highly concentrated, containing 97–100% active chemicals. No additives. They are much smaller and lighter than liquids.

Segmental Analysis

The market is segmented by product type and application.

Based on product type, the global market is bifurcated into demulsifiers, inhibitors & scavengers, rheology modifiers, friction reducers, biocides, surfactants, foamers, and others.

The demulsifiers segment is the highest contributor to the market and is expected to grow at a CAGR of 4.54% during the forecast period. Demulsifies will lead the global specialty oilfield chemicals market during the forecast period, followed by inhibitors & scavengers. Demulsifiers are widely used to separate water and oil from crude water-oil emulsions, reducing the risk of oil adulteration. Demulsify boosts crude oil export value. These factors will drive demulsified specialty oilfield chemicals. These factors are driving the demulsifier’s growth over the forecast period. Demulsifiers, or emulsion breakers, separate water in oil emulsions. They process crude oil, usually produced with a lot of saline water.

Based on application, the global market is bifurcated into production, well stimulation, drilling, enhanced oil recovery, cementing, workover & completion.

The drilling segment is the highest contributor to the market and is expected to grow at a CAGR of 4.8% during the forecast period. Hydraulic fracturing and drilling will boost oil gas operations and industry growth. These chemicals stabilize drilling fluid temperatures and keep contaminated products out. They are also drilling fluid additives that maintain hydrostatic pressure and prevent wellbore cutting. Technology and drilling will also boost product demand. Drilling fluids help companies drill faster, deeper, longer, and in more challenging conditions. Drilling fluids play many roles in oilfield chemistry. Oil and gas companies must effectively manage healthy pressure, stabilizing exposed rock, buoyancy, cooling, and lubrication during drilling. Oilfield drilling fluids can contain fibers, suspension, clay control, biocides, polymers, suspension and rheology chemicals, surface modifiers, fillers, and particles. Drillers prevent losses with specialty cement and membrane-sealing solutions.

Regional Analysis

The global oilfield chemicals market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global oilfield chemicals market and is expected to grow at a CAGR of 4.21% during the forecast period. The U.S. and Canada are included in the analysis of the oilfield chemicals market in North America. Hydraulic fracturing and drilling have increased oil gas operations. Technology and drilling are expected to boost regional growth during the forecast period. Shale gas exploration and production in the U.S. will boost oil-based chemicals. Demand for specialty oilfield chemicals to boost oil well productivity is expected to rise. The U.S. produces more crude oil as petroleum, LPG, and diesel demand rises. Due to its growing use in workover & completion, and production, the region's industry is well-established and mature. Demand depends on the number of active wells in various basins. Due to its growing use in workover & completion, and production, the region's business is well-established and experienced. Its market depends on active wells in various basins.

Asia Pacific is expected to grow at a CAGR of 6.2% during the forecast period. China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the Asia-Pacific oilfield chemicals market analysis. The government is expanding oil and gas refining infrastructure to boost productivity. The Indian Ministry of Petroleum & Natural Gas approved US$3.8 billion for the Numaligarh Refinery Expansion Project to increase its refining capacity from 3 mmtpa to 9 mmtpa. These initiatives will boost the market because oilfield production chemicals are essential to refining crude oil into petroleum, diesel, kerosene, and others. India's rising oilfield chemical sales are expected to help the Asia Pacific market hold 27% of the value share. Exploration activities and local vendors also drive market growth in the region. Industry growth is driven by rapid urbanization, industry demand for shale gas, and population growth. Exploration in India, China, the South China Sea, and Southeast Asia drives the regional market growth. Asia Pacific is led by rising crude oil and petroleum demand and energy sector investment to develop the economy.

Recent Developments

• November 2022, Kongsberg Digital launched a new app at ADIPEC that allows energy operators to track their drilling and well KPIs in real-time.

• October 2022, Solvay Sodi plans an alternative fuel thermal processing plant. Solvay Sodi, through its newly formed subsidiary "Devnya Energy," submitted a letter of investment intention to the Regional Inspectorate of Environment and Water in Varna to build a steam generation plant using local alternative fuels at its soda ash plant in Devnya, Bulgaria.

Oilfield Chemicals Market Segmentation

By Product Type

• Demulsifiers
• Inhibitors & Scavengers
• Rheology Modifiers
• Friction Reducers
• Biocides
• Surfactants
• Foamers
• Others

By Application

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

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA