Production Chemicals Market

Production Chemicals Market Size 2023-2028

The production chemicals market was worth US$ 4.453 billion in 2022, and it is estimated to reach a valuation of US$ 8.13 billion by the end of 2028, expanding at an annual growth rate of 5.68% between 2023-2028. Majorly, the production of chemicals augments the recovery of the hydrocarbons from the well. These are also used in oilfield operations, which in turn improves production maintenance and transport.

The world market for production chemicals is fragmented because there are large regional and national companies in different countries. The demand for oilfield chemicals, highly developed drilling fluids, expanding ultra-deepwater drilling projects and expansion of shale oil and gas drilling & manufacture are due to the rising exploration in oil and manufacturing activities. Production chemicals provide services to oil and gas exploration firms. Products that are prepared especially for gas production and transmission include gas well-foaming agents, corrosion inhibitors, scale solvents, and hydrogen sulfide scavenging products and for the production of oil, the chemicals that are been formulated include demulsification products, paraffin treating chemicals, corrosion inhibitors, pour point depressants, scale solvents & inhibitors, bactericides, and water treating chemicals.

Production Chemicals Market Trends:

The rapid increase in the production of crude oil, pursuing of production from aging fields, and rising drilling activities. The market is augmented to witness huge growth due to the enormous potential offered by these drivers.

Recent Developments in the Production Chemicals Market:

Haliburton Company has announced that it had won a contract to provide production chemicals and associated services for a large IOC in Oman. It would manufacture the raw materials for the contract’s portfolio and also expects to hire and develop local personnel to deliver the contract’s scope of work.

Production Chemicals Market Drivers:

The driving force of the global production chemicals market is the enhancing production of crude oil, increasing drilling activities, and production & development from well-established fields. Also, the activities of EOR are increasing across the globe in order to enhance crude oil production from declining reserves.

In addition, rising exploration in oil and manufacturing activities are enhancing the demand for oil field chemicals, highly developed drilling fluids, expansion of ultra-deepwater drilling projects, and expansion of shale oil & gas drilling and manufacture.

Production Chemicals Market Restraints:

The major restraint of the global production chemicals market is the cost fluctuation in crude oil. The increasing environmental issues and related government regulations against protecting petroleum and other such natural resources of the planet can also cause hindrances to the production chemicals market during the forecast period.

Opportunities in the Production Chemicals Market:

The rising demand for production chemicals for domestic and overseas tend chemical companies to expand their capacities.

Challenges in the Production Chemicals Market:

The inadequate infrastructure facilities, high costs of basic raw materials like natural gas and crude oil, and also the high cost of capital, and the need for technological modernization of its facilities are the major challenges that hamper the market growth.

PRODUCTION CHEMICALS MARKET REPORT COVERAGE:

Market Segmentation:

By Category:

• Demulsifiers
• Corrosion inhibitors
• Scale inhibitors
• Scavengers
• Asphaltene inhibitors
• Biocides
• Surfactants
• Others

With around a market share of 28% by value in 2014, the Demulsifiers segment contributes the largest position within the production chemicals market during the forecast period. Demulsifiers have propelled the industry forward by making possible the cheap and simply controlled production of petroleum. Demulsifiers won’t separate emulsions of oil and water for simple extraction. In the oil and gas industry, a Scavenger may be a chemical substance added to petroleum in order to disable the impurities within the reaction products. Among different kinds of production chemicals, Scavengers tend to register the best rate of growth with an anticipated CAGR of 8.1%. They are mostly used to sweeten oil by removing sulfide and oxygen from petroleum thereby increasing the efficiency of petroleum.

By Application:

• Cementing

• Production chemicals

• Drilling fluids

• Improved oil recovery

• Workover & achievements

• Well stimulation

• Others

During the forecast period, the Improved Oil Recovery segment is growing at a CAGR of 5.71%, in which it holds the largest market share in the production chemicals market in 2019. Production chemicals are utilized in production facilities and well drilling to enhance the withdrawal operations by enhancing the efficiency & effectiveness of the oil drilling process & petroleum refining and to achieve the best performance with effectual oil recovery. These chemicals hinder the creation of the metal scales and reduce the water amount into the oiler during examination & drilling, which ends up in growing demand and applications of production chemicals in oil recovery.

By Oil Type:

• Onshore
• Offshore

The offshore segment holds the highest share in the production chemicals market. Biocides are the production chemicals majorly used in offshore operations. In this particular location, the operating conditions are widely harsh and extreme. Therefore, it requires a really specific set of chemicals like biocides and corrosion inhibitors for ensuring that the operations are administered with ease.

Production Chemicals Regional Analysis:

The Production Chemicals Report includes the segmentation of Regions:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

Among these regions, the Asia-Pacific region is estimated to be the fastest-growing region as an increasing number of oilfields are being explored and turned over during this region. On the other hand, North America holds the second largest market share followed by Europe. Latin America is projected to witness the very best rate of growth of 6.9% between 2015 and 2020 for the market. Expansion was also a preferred strategy of the businesses. Expansion into growing markets like Asia-Pacific, Brazil, and therefore the Middle East has been and can be the key success for production chemicals producers if they shall increase their overall sales and revenue leading company.

Impact of COVID-19 on the Production Chemicals Market:

Covid-19 (novel Corona Virus Disease), which outbreak in early 2020 has turned into a global pandemic crisis with 15 million population getting infected and has already created the loss of over 600 thousand deaths at the global level.

Owing to the increased emphasis on preventing the spread of covid-19 and considering the transmission measures to prevent the movement and interactions between humans and also to prevent the spread of the disease. Unfortunately, this is adversely impacted a wide range of industries and created shutdown of businesses due to less or zero returns or investments. These industries are likely to take longer time than expected to cover. The production of chemicals also witnessed a decline in early April. The major factor that hampers the market growth is the reduction in raw materials and labor shortages.

Production Chemicals Market Key Players:

The companies covered in the report include:

• BASF SE
• Clariant AG
• Halliburton Company
• Ecolab Inc.,
• Schlumberger Limited
• AkzoNobel N.V.
• Baker Hughes Incorporated
• Croda International PLC
• The DOW Chemical Company