Market Opportunity for Oilfield Production Chemicals

Manufacturers have lots of growth opportunities that develop customized product formulas and offer reliable technical support.

Research reveals that the development of innovative and advanced oilfield chemicals that have superior performance characteristics and are eco-friendly has paved the way for increased market, growth, application use, and premium prices. The discovery of new oil and gas fields across different regions, along with shale gas and enhanced oil recovery (EOR) expansion activities will further augment growth prospects.

As a result of exploration and production, participants augmenting their business in high-growth economies of India, South Asia, Brazil, Mexico, and china, will fuel an uptick in oilfield service activities and volume demand for oilfield and EOR chemicals.

This market, in its current growth stage, presents extensive opportunities for oilfield production chemical manufacturers. However, competing effectively requires participants to engage in high-level development and research to introduce tailor-made, cost-effective, eco-friendly production formulations that will work in extremely challenging operational environments such as complex rock formations. Further growth opportunities manufacturers can take advantage of include:

Offering highly customized pre- and after-sales technical services to help customers achieve maximum operational efficiency and effectiveness.

Expanding organically (through manufacturing and distribution facility expansions in specific high-growth markets) to cater to the rising local demand and increase volume sales.

Establishing strategic mergers and acquisitions to develop their business, either through a quick development of the product portfolio or by leveraging an established manufacturing or distribution facility base of the acquired company.

Oilfield service companies focusing on backward integration to develop their portfolio of oilfield chemicals that would cater to their captive requirements. This would aid profitability and supply chain capabilities.

One of the biggest challenges is that facing the oilfield chemical industry is a slowdown in oil and gas production due to prolonged rig maintenance work. This harms the extent of oilfield services activities and impacts the demand for oilfield chemicals. Furthermore, some countries’ economic turmoil has also curtailed investment in oilfield services and, in turn, the need for oilfield production chemicals.

It was proven in a recent study that major market drivers and restraints, end-industry growth trends, technology trends, and market trends. Application segments covered include drilling fluids, workover and completion fluids, oilfield production chemicals, cementing chemicals, well stimulation chemicals, and enhanced oil recovery chemicals.