Future growth in oilfield process chemicals market led by enhanced oil recovery
The global market for oilfield process chemicals will be worth almost $9.7 billion by 2019, according to a new report from BCC Research.
The research firm expects the market to expand at a compound annual growth rate (CAGR) of 4.6 percent in the next five years.
Drilling-related chemicals account for more than a third, 36 percent, of the overall market. This category includes drilling fluids, workover/completion fluids and cementing additives. In 2019 its value is expected to reach $3.5 billion, representing a CAGR of 4.6 percent.
The fastest-growing segment of the overall market, however, is enhanced oil recovery chemicals. Continued strong demand is anticipated to result in a 7 percent CAGR for these products over the forecast period.
BCC Research highlighted the fast-changing conditions in the oil and gas industry in recent years, with exploration and production rebounding from the lows of the recession that began in 2008. This increase in activity was led by the development of North American shale assets, oil sands and the Gulf of Mexico's deepwater resources, all of which have contributed to growth in the oilfield process chemicals market and will continue to do so.
In particular, as existing wells mature, the use of enhanced oil recovery technology is expanding. This helps operators to access oil that is not easily recovered. BCC Research believes that such methods will become more widely used in the next decade and that this market, valued at $243 million in 2013, will be worth $364 million by 2019.
More generally, the demand for more efficient and multifunctional chemicals and chemical processes that can be used in a wide range of environments will increase during the forecast period, commented BCC Research chemicals analyst Andrew McWilliams.