Abstract
Worldwide growth in oil & gas production to spur gains for oilfield chemicals
World demand for oilfield chemicals is expected to reach $14 billion in 2010.
A number of factors are expected to contribute to these gains. Growth of oil
and natural gas production is expected to accelerate, especially in the
Africa/ Mideast region and in Latin America. Rig activity and well completions
are expected to continue to increase, though at a somewhat slower pace than
was seen in the previous five years, as oil prices moderate from the highs
recorded in 2005 and 2006. Additionally, producers are becoming increasingly
reliant on unconventional sources of oil and natural gas and placing wells in
more difficult conditions, which will further stimulate chemical demand.
Stimulation and EOR chemicals to lead advances
Although drilling fluids will remain by far the largest product category, well
stimulation and enhanced oil recovery (EOR) chemicals will register the
fastest growth. At present, well stimulation chemical demand is heavily
concentrated in four countries: the US, Russia, Canada and China. Demand in
the US alone accounts for more than half of the global well stimulation
market. Over the past decade, Russia has registered exceptionally rapid growth
in demand for well stimulation materials, in the process becoming the second
largest market in the world -- though still well behind the US. The number of
well completions in Canada in 2004 and in 2005 both set all time records and
future growth in drilling and exploration activity is expected to remain
strong. Among the leading producing nations, demand for well stimulation
materials holds strongest growth prospects in China through 2010.
Cement additives are also expected to register above average growth, as wells
in demanding conditions or depths require cements that perform under large
ranges of temperature and pressure. Most other products are expected to post
growth comparable to the overall average.
North America to remain largest regional market
Although oil and gas production is expected to grow more rapidly in other
regions of the world, the North American market is expected to be the largest
and fastest-growing market for oilfield chemicals. The US and Canada, with
older and more developed oilfields, offer a much larger market for chemicals
designed to maintain output levels in areas of diminishing well flows. Not
surprisingly, these factors contribute to North America' s position as the
leading regional market for well stimulation and EOR chemicals, the
fastest-growing product type.
In contrast, Africa and the Mideast are much less intensive users of oilfield
chemicals, as extraction of oil and gas are relatively easy in that part of
the world. However, increased growth in oil and gas production in Africa and
the Mideast are expected to boost demand for production chemicals and other
product types.
Study coverage
Details on these and other findings are contained in World Oilfield Chemicals,
a new Freedonia industry study presents historical demand data in US dollars
for 1995, 2000 and 2005 plus forecasts to 2010 and 2015. Demand data is
provided by major product type and by region, as well as for 27 countries.
This study also considers market environment factors, evaluates company market
share data and profiles 37 global industry participants including Baker
Hughes, BJ Services, Champion Technologies, Halliburton, M-I SWACO and Nalco.
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