Oil Field Chemicals Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Oil Field Chemicals market reached a value of about USD 24.6 billion in 2021. The industry is projected to grow at a CAGR of around 4.4% in the forecast period of 2022-2027 to reach a value of about USD 31.9 billion by 2027.

The global Oil Field Chemicals industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is being driven by increased shale gas exploration and production. North America is the highest category spender by region that is driving the demand for the Oil Field Chemicals industry.

Oil Field Chemicals: Industry Definition and Segmentation

Fibres, suspension, clay control, and biocides are among the oilfield chemicals utilised as drilling fluids, polymers, suspension and rheology chemicals, surface modifiers, fillers, and particles. To reduce losses, drillers also use specialised cement and membrane-sealing solutions. The chemicals play a critical role in increasing the production of existing (green) and mature (brown) fields. Stimulation operations can be carried out merely on the wellbore or the reservoir; they can be carried out on old and new wells. They can be planned for either remedial or increased production reasons. The Oil Field Chemicals industry report comprises segments by type (Biocides, Corrosion and Scale Inhibitors, Demulsifiers, Polymers, Surfactants), application (Drilling and Cementing, Enhanced Oil Recovery, Production, Well Stimulation, Workover, and Completion), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

North American Region is Driving the Growth of the Industry

North America is the largest market in the industry because of the increased emphasis on shale gas production and exploration. Shale gas output has increased dramatically. Natural gas demand is predicted to rise over the projection period, owing to increasing demand from North America's major growing countries.

The market is being driven by rising oil production and exploration activities. Oilfield chemicals are used in the drilling sector to maintain temperature and prevent contaminated goods from entering the drilling fluid system. Due to the developments in water drilling operations, the need for oilfield chemicals is expected to increase significantly. In addition, the growing shale gas exploration and production are likely to give the industry a boost. Demand for petroleum-based fuel is propelling the industry's expansion in the transportation sector.

However, the rising clean energy initiatives due to growing concerns over the environment will likely hamper the market's growth.

Best Procurement Practices

The global Oil Field Chemicals industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Oil Field Chemicals regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Due to the multicomponent nature of the generated fluid, the greater the pressure at which the first separation occurs, the more liquid will be gained in the separator. Some of the liquid's lighter elements evaporate in the stock tank downstream of the partition. If the initial separation pressure is too high, too many light components will remain in the liquid phase at the division and will be lost to the gas phase at the tank. Delicate parts will not be stabilised in the liquid at the divider if the pressure is too low and will be lost to the gas phase. The fluids are flashed in an initial separator for a single-stage separation and then flashed again at the stock tank. Traditionally, the stock tank hasn't been considered a separate separation step. The liquid is flashed at an initial pressure and then flashed at gradually lower pressures two times before entering the stock tank in a three-stage separation process.

Various Advances in the Sector, Further Driving the Procurement Oil Field Chemicals Market

The various developments in the sector are propelling the industry. Chemical Enhanced Oil Recovery (EOR) is an effective method for recovering bypassed oil and residual oil stranded in the reservoir. Chemical injections are used in this EOR approach to improve oil recovery, thereby boosting the industry's growth. The chemicals are also additives in drilling fluids to maintain hydrostatic pressure and clean cuttings from the wellbore. The rise in production opportunities in emerging nations is likely to impact the market positively. Furthermore, the oilfield chemicals market is expected to benefit from the great demand for technologically sophisticated cementing products, such as selvol polyvinyl alcohol with non-ionic and low-viscous qualities.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Oil Field Chemicals Industry Report

• Schlumberger N.V
• Baker Hughes Company
• Halliburton Company
• Weatherford International Plc
• Superior Energy Services, Inc

Market Landscape

Price, quality, technology, brand image, and distribution network are all criteria that industry competitors compete on. The industry's major players manufacture and distribute their goods directly or through third-party vendors and distributors. As a result, mergers and acquisitions and joint ventures are projected to be some of the essential techniques for expanding into local markets. By sourcing raw materials and producing and distributing finished goods across the value chain, enterprises can lower the costs of obtaining raw materials from small-scale businesses. Integration across the value chain allows enterprises to attain larger profit margins and economies of scale, ensuring the long-term viability of the industry's goods.

Key Initiatives by Companies

• April 18, 2022 - Schlumberger and PETRONAS will work in partnership to discover opportunities in sustainability, digitalisation, the Internet of Things, and collaborative technology development.
• February 10, 2022- Weatherford has inked an international partnership agreement with LYTT, a supplier of real-time insights to energy asset operators using sophisticated sensor data extraction and acoustic fingerprinting. Weatherford's experience in distributed fibre-optic sensing (DFOS), delivered through ForeSite, an industry-leading platform, will be combined with LYTT's unique sensing insights to target all businesses, industries, and platforms.