Specialty Oilfield Chemicals Market Size, Share, Trends, Growth and Forecast 2028

Specialty Oilfield Chemicals Industry Prospective:

The global specialty oilfield chemicals market size was worth around USD 11 billion in 2021 and is predicted to grow to around USD 14.98 billion by 2028 with a compound annual growth rate (CAGR) of roughly 3.15% between 2022 and 2028.

The report analyzes the global specialty oilfield chemicals market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the specialty oilfield chemicals market.

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Specialty Oilfield Chemicals Market: Overview

Specialty oilfield chemicals are compounds that help the efficiency and output of oilfield activities as they are widely used purifying agents across machinery used in the oil & gas industry including the machinery, oil, equipment, and oil sites. They have applications during drilling, production, and completion along with other processes.

The use of specialty oilfield chemicals helps in reducing the overall cost of the project by helping in running the oil field and related processes smoothly. They also assist in minimizing the amount of water required to be injected into oil wells and inhibit the production of metal scales. Most of the companies dealing in specialty oilfield chemicals provide a holistic solution for various processes that are critical parts of the oil & gas industry.

Key Insights

• As per the analysis shared by our research analyst, the global specialty oilfield chemicals market is estimated to grow annually at a CAGR of around 3.15% over the forecast period (2022-2028)
• In terms of revenue, the global specialty oilfield chemicals market size was valued at around USD 11 billion in 2021 and is projected to reach USD 14.98 billion, by 2028
• The global specialty oilfield chemicals market is projected to grow owing to the increasing construction of oil & gas refineries where these compounds are used extensively to help maintain the structure for a longer time which directly impacts the quality of oil produced.
• Based on application segmentation, drilling was predicted to show maximum market share in the year 2021
• Based on type segmentation, corrosion inhibitor was the leading type in 2021.
• On the basis of region, Asia-Pacific was the leading revenue generator in 2021

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Covid-19 Impact

The global market size was severely impacted during the pandemic owing to the loss incurred by the oil & gas sector during 2020 as a result of a relatively lesser demand for energy sources, Other issues like delays in new product launches, and project development further contributed to a significantly low requirement of the compounds.

Specialty Oilfield Chemicals Market: Growth Drivers

Increasing construction of oil & gas refineries to propel market growth

The global specialty oilfield chemicals market is projected to grow owing to the increasing construction of oil & gas refineries where these compounds are used extensively to help maintain the structure for a longer time which directly impacts the quality of oil produced. Since specialty oilfield chemicals protect against corrosion they are highly preferred among players in this sector.

The global market cap may also benefit from the increasing number of drilling activities carried out across the globe as a result of increasing demand for a constant supply of energy sources like gas and oil. In 2021, the US petroleum exported over 8.55 million barrels per day.

The country is known to produce more than 6.82 billion barrels of oil annually. As per the International Energy Agency, consumption worldwide peaked in 2006 reaching up to 70 million barrels per day. These factors are expected to help generate more demand for the compound in the coming years.

Specialty Oilfield Chemicals Market: Restraints

Stringent government regulations pose hindrances during market growth

The global market growth may be restricted owing to the strict government regulation in the oil & gas sector, especially directed toward the use of harsh or harmful chemicals as it may impact the quality of the oil and cause issues during future extraction processes. The global market cap may also be affected due to a slow but steady shift from non-renewable sources of energy to more eco-friendly sources.

Specialty Oilfield Chemicals Market: Opportunities

Changing power dynamics to provide growth opportunities

Due to the current political turmoil, the global specialty oilfield market cap may get affected as the world is witnessing a shift in power dynamics due to the sudden change of perception amongst world leaders about the export of Russian oil. During this change, some market players may benefit heavily while some may undergo losses depending on the proactive and strategic measures adopted by the businesses. However, there are going to be excellent growth opportunities during this phase.

Specialty Oilfield Chemicals Market: Challenges

The high cost of the compound acts as a major challenge during the growth trajectory

The compound is high in cost and extensive use of specialty oilfield chemicals increases the overall cost of business which is a major challenge for the global market players causing them to opt for alternatives. Other factors like crude oil price volatility and fluctuating raw material prices are other aspects of major concerns in the global market.

Specialty Oilfield Chemicals Market: Segmentation

The global specialty oilfield chemicals market is segmented based on type, application, and region

Based on type, the global market segments are deoiler, additive, demulsifier, fluid loss additive, biocide, corrosion inhibitor, and others. The segment witnesses the highest growth rate in the corrosion inhibitor section owing to the wide applications of the compound in protecting pipeline and refinery structures against corrosion. Although deterioration due to corrosiveness is a common aspect, it can be inhibited with the use of specialty oilfield compounds.

As per a study on 66 marine environment failures, 42 were due to corrosion. Fluid loss additive also generates high revenue. It is also known as a filtrate-reducing agent. Fluid loss may occur when the liquid comes in contact with a porous substance.

Based on application, the global market is divided into cementing, drilling, enhanced oil recovery, and production with drilling leading the global market segment.

In 2017, Saudi Aramco, one of the biggest players in the oil & gas sector, was claimed to be operating more than 220 drilling rigs which was a result of increased investment even though oil prices were high during this year. Enhanced oil recovery (EOR) tails the drilling segment. It refers to the process through which companies can access the oil in wells that were not reached during the primary and secondary oil extraction process.

Recent Developments:

• In March 2022, Halliburton, a UAE-based multinational company specializing in energy equipment and services along with being known for a long list of acquisitions, inaugurated the first oilfield specialty chemical manufacturing plant in Saudi Arabia. The new unit is projected to help the production of next-generation specialty chemical supports and solutions gain momentum. The move has helped Halliburton expand its footprint in the eastern hemisphere.
• In July 2022, Solvay SA, a multinational company of Belgian and French origin, announced that the company will use the advisory benefit of Bank of America for a strategic viewpoint on the expected sale of the company’s oilfield chemical business. The company may grow through the potential sale as a move to revamp its operational activities by getting rid of dead assets.

Specialty Oilfield Chemicals Market Report Scope:

Specialty Oilfield Chemicals Market: Regional Analysis

North America to generate the highest revenue in the coming years

The global specialty oilfield chemicals market is projected to grow owing to the increasing demand for oil & gas and the rise in investment in the sector which may be amped up in the coming years as a counteractive measure against Russia and the changing political dynamics.

Both the main regions in North America, the US and Canada are projected to be heavy consumers of specialty oilfield chemicals due to their massive role in fueling the oil industries which is further propelled due to the already advanced economy along with industrialized and modernized cities. In 2021, Canada remotely used 5.42 million barrels per day, which has been claimed as the highest for any of the North American regions. It is also the fifth-largest producer of crude oil in the world.

Specialty Oilfield Chemicals Market: Competitive Analysis

The global specialty oilfield chemicals market is led by players like -

• Akzo Nobel NV
• Solvay
• Huntsman International LLC
• SMC Oilfield Chemicals
• BASF SE
• KMCO LLC 
• amongst others.

The global specialty oilfield chemicals market is segmented as follows:

By Type

• Deoiler
• Additive
• Demulsifier
• Fluid Loss Additive
• Biocide
• Corrosion Inhibitor
• Others

By Application

• Cementing
• Drilling
• Enhanced Oil Recovery
• Production

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa