WELLESLEY, Mass., Oct. 29, 2018 (GLOBE NEWSWIRE) -- Due to increased accessibility to easy-to-extract locations, the global market for oilfield process chemicals is anticipated to experience continued growth, according to a new report from BCC Research.
In 2018, the global market for oilfield process chemicals was worth $28.4 billion. BCC Research estimates that it will reach a value of $35.4 billion by 2023, indicating a compound annual growth rate (CAGR) of 4.5%, according to the report Oilfield Process Chemicals: Global Markets.
Since its last report on the same subject, BCC Research attributes the market’s upward adjustment to a 4.5% compound annual growth rate (CAGR) from 2018-2023 due to substantive price increases in most fossil fuels since 2016. The price increases were driven by production cuts by OPEC in 2017, a drop in Venezuelan production and a 7.3% increase in global oil and gas industry capital expenditures from 2016 to 2017, which is expected to support greater usage of oilfield process chemicals in the coming years.
Research Highlights
- Drilling-related chemicals (drilling fluids, workover and completion fluids and cementing additives) accounted for 36.3% of the total 2017 market, a percentage that should remain relatively stable through 2023.
- The demand for more effective chemicals will increase during the forecast period as companies meet the challenges of more extreme conditions, such as deep offshore deposits, that will alter the performance characteristics and effectiveness of chemicals required to work effectively in these environments.
- The largest 2018 to 2023 CAGR growth by process application is expected in Enhanced Oil Recovery (EOR) applications, whose projected CAGR is 6.8% between 2018 and 2023.
“The world’s energy needs are increasing as emerging economies such as China, India, Latin America and Africa develop their capabilities and raise the living standards of their populations,” said report author Andrew McWilliams. “Crude oil and natural gas are critical to the energy supply chain. For this reason, many nations are looking to be self-sufficient in energy generation across the supply chain, resulting in a drive to secure feedstock they can control. They do not want to rely on imports from nations that may have differing political agendas or ideals that are in conflict with theirs or are located in regions of unrest and instability that could threaten the supply of key raw materials.”
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.