Oilfield Chemicals Market was worth USD 23.0 billion in 2021 and Estimated to reach USD 30.6 billion by 2029, to growing at a CAGR of 3.6% | Size & Industry Report

Oilfield Chemicals Market size was estimated at USD 23.0 billion in 2021 and is expected to reach USD 30.6 billion by 2029, expanding at a CAGR of 3.6% over the forecast period 2022-2029.

Key Oilfield Chemicals Market Drivers

Oilfield Chemicals Market is primarily driven by growing demand for petroleum-based products from transportation industry, increasing shale gas exploration activities and advancements in deep drilling activities. Transportation industry has grown rapidly in the last two decades. Changes in people’s travelling trends coupled with rising economic activities worldwide, are supporting the growth of transportation industry. As per recent estimates, in United States, more than 27% of energy was consumed in transportation sector in 2021. Petroleum is one of the most widely used energy source in the transportation industry. As the dependency on different transportation modes is increasing, demand for petroleum derived fuel like crude oil will increase, which is expected to create lucrative growth opportunities for oilfield chemicals market in the coming years.

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In the oil and gas sector, oilfield chemicals find its application in operations such as well stimulation, drilling and production. Additionally on-going Russia-Ukraine conflict has negatively impacted the global energy landscape. Crude prices have significantly high as compared to previous years, which is leading to recession in many countries. Governments worldwide are putting more emphasis on using clean energy sources to combat climate change, by promoting the adoption of greener fuels like bioethanol and other renewable sources. Such trends are restricting the demand for oilfield chemicals. However, a major portion of population is still dependant on conventional sources of energy for meeting their basic requirements. To meet their requirements, need for exploring new oilfields is increasing, thus market is expected to grow at a considerable rate.  

Corrosion and Scale Inhibitors is estimated to dominate the market.

Companies are increasingly using inhibitors to prevent accumulation of insoluble crystals during oil processing operations. Demulsifiers finds its application mainly in offshore oil production activities for separating oil emulsions. In addition,  Various companies are planning to launch innovative demulsifiers, for instance, Nouryon, a developer of speciality chemicals based out of Netherlands introduced variety of demulsifiers, which will help oil producers for separating crude oil from natural gas. 

Drilling and Cementing segment is expected to lead the oilfield chemicals market due to surge in demand for oilfield surfactant chemicals.

Oilfield chemicals are used in drilling fluid systems to stabilize temperature during drilling operations. As the demand for petroleum-based products like diesel and crude oil are rising, number of oil and gas drilling activities will increase, which in turn will create more demand for oilfield surfactant chemicals for reducing surface tension between solids and fluids.

Based on Region, North American region is expected to hold the largest market share.

In North American region, demand for oilfield chemicals is increasing due to surge in shale oil and gas production and growing adoption of hydraulic fracturing techniques by enterprises. As per United States Energy Information Administration’s estimates, the energy consumption in the country averaged 19.78 million barrels per day in 2021, which is 8%, higher as compared to 2020. Additionally, Indian oilfield chemical market is driven by growing use of oilfield chemicals for refining crude oil and increasing investments by government for expanding oil and gas infrastructure in India through various gas pipeline projects.

Top Market Players

Some of the major companies operating in the oilfield chemicals market are The Dow Chemical Company, Clariant AG, Chevron Corporation, BASF SE, Baker Hughes Company, Schlumberger Limited, Halliburton, KRATON CORPORATION, Solvay, and Kemira, among others.

Key Developments:

• In December 2022, Champion X, a leader in drilling technology inaugurated a new oilfield services chemical lab distribution facility in Trinidad.

Market Segmentation:
Segmentation by Product
o Biocides
o Corrosion and Scale Inhibitors
o Demulsifiers
o Polymers
o Surfactants
o Other Chemical Types
Segmentation by Application
o Drilling and Cementing
o Enhanced Oil Recovery
o Production
o Well Stimulation
o Workover and Completion

Segmentation by Region
• Asia Pacific
o China
o Japan
o India
o Rest of APAC
• North America
o United States of America
o Canada
• Europe
o United Kingdom
o Germany
o France
o Spain
o Rest of Europe
• RoW
o Brazil
o South Africa
o Saudi Arabia
o UAE

About GMI Research

GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and business decisions.

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