by Oilfield stimulation chemicals are used in hydraulic fracturing and acidizing processes to enhance oil and gas production from reservoirs. Hydraulic fracturing involves pumping fluids with proppants like sand under high pressure into oil or gas bearing formations to create fractures through which oil and gas can flow more freely. Acidizing is used to increase permeability in the reservoir by dissolving carbonates in the rock. Commonly used oilfield stimulation chemicals include solvents, acids, surfactants, biocides, and corrosion & scale inhibitors. They help in removing drilling fluid damage, increasing reservoir contact, optimizing fracturing efficiency and enhancing production.
The global 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 key trends:
One of the key trends in the oilfield stimulation chemicals market is the increasing adoption of green chemicals. Rising environmental concerns regarding the use of toxic chemicals in unconventional oil and gas operations is pushing producers to replace them with more environment-friendly bio-based and low toxicity alternatives. Major players are focusing on developing bio-based and recycled products for stimulation applications. Another trend is the use of nano-engineered polymers and particles to enhance fracturing efficiency. New nano-materials are able to modify fluid rheology, create stronger fractures and improve proppant transport in hydraulic fracturing. Their use is expected to gain momentum over the forecast period.
Porter’s Analysis
- Threat of new entrants: The oilfield stimulation chemicals market requires high R&D investments and established distribution channels. These high entry barriers limit the threat of new entrants.
- Bargaining power of buyers: Major oil and gas companies have significant bargaining power over stimulation chemical suppliers due to the fragmented nature of the market.
- Bargaining power of suppliers: A few large global players dominate the supply of raw materials for stimulation chemicals like guar gum. This increases their bargaining power over buyers.
- Threat of new substitutes: No cost-effective substitutes exist for stimulation chemicals in enhancing oil production from mature fields.
- Competitive rivalry: The market is highly competitive with major global players competing for market share and developing innovative products.
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 offshore exploration & production activities.
Regionally, North America dominated the market in 2023 owing to the presence of mature oilfields and increasing shale gas exploration in the United States. However, the Asia Pacific region is anticipated to exhibit the highest growth rate during the forecast period with the growing oil & gas industry in China and India.
Key players operating in the oilfield stimulation chemicals market are Baker Hughes, Schlumberger, Halliburton, BASF SE, Huntsman Corporation, Croda International Plc, AkzoNobel, The Dow Chemical Company, DuPont de Nemours, Inc., and Solvay. These players are focusing on developing bio-based and environment-friendly stimulation chemicals through R&D activities.
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, chemical and materials, defense and aerospace, consumer goods, etc.
