Oilfield Chemicals Market - Forecast(2023 - 2028)

Oilfield Chemicals Market Drivers 

Growing Offshore Oil and Gas Development Projects 

The oil produced in the oilfield contains a significant amount of water, which is mixed in with the oil during the drilling process or spontaneously, particularly in offshore drilling and wells. It's critical to separate the oil from the water to cleanse it and reduce corrosion in the pipes and containers that transport the oil. As a result, offshore oil and gas projects use demulsifiers, corrosion inhibitors, anti-corrosion agents, and other oil field chemicals. According to Westwood Global Energy Group, in 2021, twenty-one offshore oil and gas projects have received final investment decisions. Moreover, Sangomar, a project in Senegal built by Woodside Energy of Perth, Australia, with a production potential of 75,000 to 100,000 barrels of oil per day, is scheduled to begin production in 2023. Also, the offshore Cyprus-Greece Gas Pipeline project will begin operation in 2025. Thus, the new offshore oil and gas projects across the world will boost the production for oil and gas, this will result in projected to expand the oilfield chemicals demand, hence, prospering the market growth. 

Growth of Drilling and Cementing Application 

Oil field chemicals including drilling fluids and polymers are high-performance, temperature-stable, and contamination-tolerant materials that can aid and improve the drilling process. Furthermore, oil field chemicals are employed in cementing because they are particularly good in retaining water in cement slurries across a wide temperature range. Many oil extraction projects have begun, with drilling and cementing in the early stages, which is expected to increase the demand for oilfield chemicals. For instance, in January 2022, Equinor, a Norwegian energy company, has begun drilling the Ginny exploratory well in the Norwegian Sea. Also, in December 2021, EXALO Drilling SA and Invictus Energy have inked an agreement to drill the Muzarabani-1 exploratory well at the Cabora Bassa project in Zimbabwe. In September 2021, Oil and Natural Gas Corporation (ONGC) has awarded Shelf Drilling a three-year contract for operations in Mumbai High, offshore India, for the Parameswara jack-up rig. As a result, the new oilfield drilling projects across the world are projected to boost the oilfield chemicals market growth. 

Oilfield Chemicals Market Challenges 

Costly Disposal of Oilfield chemicals 

The major challenge related to the oil field chemicals is the disposable high cost and strict environmental norms, which is limiting the market growth. The disposable cost of oilfield chemicals is high because it has to go through various procedures such as radiological analysis, transportation, composition analysis, non-norm waste disposal, administrative costs, pretreatment capacity decrease, and authorizing and manifesting fees are all factors that must be considered before disposing of the oil field chemicals. Moreover, new guidelines by the government are also limiting market growth. For instance, in April 2021, The European Union has released a new Hydrocarbons Guidance Document that tackles 13 onshore and 10 offshore activities in the oil and gas extracting sector that have the greatest potential for harming the environment and human health. The activities include handling chemicals,?drill cuttings, and hydrocarbons, as well as fugitive emissions. Thus, these factors are posing a major challenge for the oilfield chemicals market growth. 

Oilfield Chemicals Industry Outlook

Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the oilfield chemicals market. Major players of the oilfield chemicals market are: 

Recent Developments