Global Oilfield Stimulation Chemical Market is Segmented By Type (Surfactants, Gelling Agents, Friction reducers, Corrosion and Scale Inhibitors, Biocides, Crosslinkers, Acids, Others), By Application (Acid Fracking, Hydraulic Fracturing, Matrix Acidization, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030
Report Overview
The global "oilfield stimulation chemical market" size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2030, growing at a CAGR during the forecast period (2023-2030).
Stimulation treatments enhance or restore the productivity of a well. The increased productivity results from new flow channels from which the targeted formation can recover oil. The leading companies offer a targeted portfolio of specialty chemicals designed to enhance the stimulation process in oilfields. Oilfield stimulation chemicals find most of their applications in hydraulic fracturing, acid fracking, matrix acidization, and other processes.
The oilfield stimulation chemicals market can be classified into gelling agents, surfactants, crosslinkers, friction reducers, corrosion & scale inhibitors, acids, and others. Products such as biocides and acids are utilized to control the bacteria existing in the fracturing fluid at the surface. Corrosion inhibitors are required in highly saline and acidic environments to shield the metal equipment. Friction pressure is a concern throughout the pumping process and can be controlled efficiently by friction inhibitors.
Oilfield Stimulation Chemical Market Scope
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Metrics |
Details |
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Market CAGR |
High |
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Segments Covered |
By Type, By Application, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Source: DataM Intelligence Analysis (2023)
Oilfield Stimulation Chemical Market Dynamics
The global oilfield stimulation chemical market growth is driven by the demand for increasing the oil production
Demand for increasing the oil production
At present, oil has become the most prominent source of energy globally. Its products underpin modern society, principally supplying energy to the power industry, heating homes, and providing fuel for vehicles and airplanes. According to the International Energy Agency report, in 2020, at the start of our forecast period, oil demand was nearly nine mb/d below the level in 2019. In the absence of policy intervention and behavioral changes, longer-term growth drivers will continue to push up oil demand. As a result, by 2026, global oil consumption is forecasted to touch 104.1 mb/d. It would signify an increment of 4.4 mb/d from 2019 levels. With the rising oil demand, various companies are focusing on ramping up their production. The demand for chemicals has expanded dramatically, with companies looking to expand their production with stimulation.
In 2017, Downhole Chemical Solutions, a provider of stimulation and completion chemical products to the oil & gas industry, announced a partnership with Black Bay Energy Capital. DCS has undergone rapid growth in the Permian Basin and other U.S. onshore operating areas using proprietary chemistry. These scenarios are expected to boost the market for oilfield stimulation globally.
Harmful impacts of the chemical
The utilization of harmful substances impacts the oilfield stimulation chemical market. There are concerns that oil field chemicals will occur in produced water and these chemicals may pose an unrecognized hazard for produced water beneficial reuse since potential exposure pathways from beneficial reuse include chemical uptake, contamination of regional aquifers through recharge, and the direct contact of farmworkers with produced water.
The hazard posed by oilfield chemicals would be in addition to hazards associated with naturally occurring constituents of produced water, such as metals, salts, aromatic hydrocarbons, and naturally occurring radioactive material. In California, the state government is studying the risks associated with matrix acidizing and acid fracking, and proppant hydraulic fracking to better regulate all good stimulation processes. The state’s Senate Bill 4 implements mechanisms for groundwater quality monitoring and public disclosure of all chemicals used.
COVID-19 Impact on Oilfield Stimulation Chemical Market Growth
The oil industry has encountered negative demand in the outbreak of COVID-19 due to the imposition of lockdown, which severely affected end-use sectors. The lockdown has hampered the supply chain and operation. In addition, the import and exports were suspended, which fluctuated the prices of raw materials. The industry players focus on reducing capital expenditure by postponing final investment decisions on new oil projects, which has impacted the market for oilfield stimulation chemicals. For instance, ExxonMobil Corporation has reduced 30% capital expenditure on upstream operations.
The substantial decrease in oil prices was caused by two main factors: the 2020 Russia–Saudi Arabia oil price war and the COVID-19 pandemic, which reduced demand for oil because of lockdowns around the world and impacted the demand for stimulation chemicals. World oil markets are rebalancing after the crisis spurred an unprecedented collapse in demand in 2020. Still, according to industry experts, they may never return to normal. However, with ease in trade restrictions and favorable initiatives by the government, the market is expected to flourish in 2021.
Oilfield Stimulation Chemical Market Segment Analysis
By application, the oilfield stimulation chemical market is classified into acid fracking, hydraulic fracturing, matrix acidization, and others.
The hydraulic fracturing in the oilfield stimulation chemical market is expected to grow at the fastest CAGR during the forecast period (2021-2028)
Hydraulic fracturing is expected to hold the largest oilfield stimulation chemical market in the forecast period. Hydraulic fracturing is currently the most popular type because it has proven efficient, effective, and safer than older methods. Hydraulic fracturing involves pumping a fluid downhole to create a fracture in the formation of rock. Chemistries involved in hydraulic fracturing generally include specially engineered fluids composed of a carrier fluid (usually brine or water) and, among others, a specialty polymer that reduces flow turbulence and the amount of horsepower required to complete the pumping job.
Hydraulic fracturing utilizes crosslinkers, friction reducers, gelling agents, and other various types of chemicals for stimulation. For example, friction reducers have been extensively employed to decrease capillary pressure and potential water blockages during stimulation treatments by reducing surface tension and increasing the return of injection fluids.
Source: DataM Intelligence Analysis (2023)
Oilfield Stimulation Chemical Market Geographical Share
The Middle East & Africa region holds the largest market for the global oilfield stimulation chemical globally
The Middle East & Africa region holds the largest market share for the oilfield stimulation chemical market globally and is expected to continue its dominance in the forecast period. The anticipated growth is driven by the increasing demand for oil fields and increasing investments in exploration and production activities in the Middle East region. MEA is projected for a substantial contribution to developing the market owing to its oil-related activities. Countries such as UAE and Saudi Arabia, among others, are leading participants in developing the market in the region.
The companies are looking to expand the production capacities in the oil fields, which is anticipated to expand the market presence of the oil field stimulation market in the region. For instance, in 2021, Saudi Arabia’s Industrialization and Energy Services Company agreed to acquire a 25 percent stake in OPT Petroleum Technologies Company Limited. OPT is a fast-growing oilfield chemicals company centering on providing specialty chemicals for well construction and stimulation. TAQA’s partnership with OPT secures passage to world-class specialty chemicals.
Moreover, in 2019, Halliburton Company held a ceremony in Saudi Arabia for the first oilfield chemical manufacturing reaction plant. The plant will be located at the service company’s PlasChem Park location in Jubail. The plant will have capacities to manufacture a broad slate of chemicals for stimulation, production, and downstream engineered treatment programs.
Source: DataM Intelligence Analysis (2023)
Oilfield Stimulation Chemical Companies and Competitive Landscape
The oilfield stimulation chemical market is consolidated with the presence of global companies, contributing to the major share in the market growth. Solvay, Innospec, Ace Fluid Solutions, Halliburton, BASF SE, Chevron Philips, DuPont, Clariant, The Dow Chemical Company, and Lubrizol Corporation are some of the key players holding strong brand power and wide distribution network globally. The major players are adopting various new strategies to dominate the market, such as launching new products, acquisitions, and collaborations, contributing to the growth of the oilfield stimulation chemical market globally.
Ace Fluid Solutions
Overview: Ace Fluid Solutions (AFS) provides fluid solution offerings that span from sourced water to stimulation chemicals to support the end-to-end frac process. AFS is focused on the Permian Basin with additional locations in the Mid-Continent, Eagle Ford, and Haynesville Shales.
Product Portfolio: The AFS provides biocide, friction reducers, scale inhibitors, surfactants, and guar slurry.
Key Development: In 2021, Terra Oilfield Services and Ace Completions announce the formation of Ace Fluid Solution, headquartered in Texas. The company has specialty stimulation chemicals, water sourcing program management, water transfer, and in-field technical support to operators and pumping companies in the active US shale play.
Why Purchase the Report?
- Visualize the segmentation of the oilfield stimulation chemical market by type, application, and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in the oilfield stimulation chemical by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of oilfield stimulation chemical market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global oilfield stimulation chemical market report would provide approximately 54 market data tables, 48 figures, and 180 pages.
Target Audience
- Service Providers/ Buyers
- Oilfield Companies
- Stimulation Companies
- Chemical Companies
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Logistic Companies
- Distributors
