by Oilfield stimulation chemicals are mainly utilized to enhance oil production from wells through various processes like hydraulic fracturing and acidizing. These chemicals aid in cleaning out reservoirs and maintaining flow in oil wells. They help in dissolving deposits, increase permeability of reservoirs and resist corrosion. Some commonly used oilfield stimulation chemicals are acids, biocides, breakers, corrosion and scale inhibitors, friction reducers, surfactants etc. These chemicals are formulated based on reservoir conditions and characteristics to achieve optimal production.
The Oilfield Stimulation Chemicals Market is estimated to be valued at US$ 4.27 Bn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing exploration and production (E&P) activities globally coupled with increasing oilfield operations are major drivers bolstering growth of the oilfield stimulation chemicals market. As conventional wells age and deplete, operators are increasingly adopting stimulation activities like hydraulic fracturing and acidizing to boost production from mature oil and gas fields. This is creating high demand for stimulation chemicals. Additionally, increasing shale gas exploration is also fueling market growth as hydraulic fracturing is extensively used to produce gas from shale formations. However, stringent environmental regulations regarding disposal and use of toxic stimulation chemicals may hinder market expansion over the forecast period.
Segment Analysis
The oilfield stimulation chemicals market is dominated by hydraulic fracturing sub-segment due to rise in unconventional reserves. Hydraulic fracturing make up around 60% of the total market owing to increasing demand for shale gas extraction around the world. It involves pumping fluids and proppants at high pressure to fracture underground formations and prop open the cracks, allowing oil or gas to flow up the well.
PEST Analysis
Political: Frequent policy changes related to shale gas production can impact the market. Some nations have placed restriction on fracking to reduce environmental impact.
Economic: Volatility in oil prices affects investments in extraction of unconventional reserves, impacting demand for stimulation chemicals.
Social: Concerns about groundwater contamination and induced seismicity due to fracking hampers market growth to some extent.
Technological: Developments in horizontal drilling and advanced fracking techniques are expanding application of stimulation chemicals in complex reservoirs.
Key Takeaways
The global Oilfield Stimulation Chemicals Market is expected to witness high growth, exhibiting CAGR of 3.3% over the forecast period, due to increasing shale gas production worldwide. North America dominates the market currently owing to largest shale gas reserves and hydraulic fracturing activities in the region. Key players operating in the Oilfield Stimulation Chemicals are Baker Hughes,Schlumberger,Halliburton,BASF SE,Huntsman Corporation,Croda International Plc,AkzoNobel,The Dow Chemical Company,DuPont de Nemours, Inc.,Solvay. The key players are focused on expanding their production capacities and investments for developing enhanced fracking fluids and chemicals to boost well performance.
Regional analysis:
North America accounts for over 45% of global oilfield stimulation chemicals market led by U.S. rising exploration and production from shale reserves. Rapid growth in tight oil & gas reserves in U.S. and Canada spur demand for stimulation fluids.
Asia Pacific market is projected to witness fastest growth during the forecast period with China and India emerging as high potential countries. Rising exploration of unconventional reserves and investments in oil & gas projects will drive the regional market.
Key players:
Key players operating in the Oilfield Stimulation Chemicals are Baker Hughes,Schlumberger,Halliburton,BASF SE,Huntsman Corporation,Croda International Plc,AkzoNobel,The Dow Chemical Company,DuPont de Nemours, Inc.,Solvay. The key players are focusing on expanding their production capacities and investments for developing enhanced fracking fluids and chemicals to boost well productivity and recovery rates.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
