Oil Field Chemicals Market Intelligence

Oil Field Chemicals Market Description

The market for drilling fluid is estimated to reach $11 billion by 2021 while growing at a constant CAGR of 2-3 percent. The market size of drilling fluids is directly proportional to the drilling operations across the region, with Asia and the U.S. being the largest consumers of drilling fluid. The U.S. is expected to maintain its position as the largest consumer with about 42 percent of the global supply. The consumption rate of drilling fuel is more in the U.S. as drilling and extraction from shale or tight formation require larger quantities of drilling fluids compared to conventional wells. The demand for Bentonite is expected to be driven by foundry industries. The demand is expected to remain robust in developing countries due to the increase in demand from the automotive sector.

The report also provides market dynamics of other oil field chemicals such as Barite, Xanthan Gum, Calcium Carbonate, Potassium Chloride, Potassium Hydroxide, Caustic Soda and Soda Ash. It also explores the various contract models and pricing mechanisms prevalent in the industry, such as Rate Contract, Drilling Fuel Service Contract, Integrated Service Contract, and Rental Contracts. The report also discusses the environmental regulations associated with the utilization of oil field chemicals.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Market Trends
Technology & Innovation Trends
Global Supplier List and Capabilities
Mergers and Acquisitions

Oil Field Chemicals Market Trend, Analysis & Forecast

Category Intelligence on Oil Field Chemicals covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Executive Summary

1.1 Market Overview

1.2 Supply demand overview

1.3 Contract models overview

2. Market Analysis

2.1 Drilling fluids Classification

2.2 Drilling Fluid market size

2.3 Market Analysis for –Bentonite, Barite, Xanthum gum, Calcium Carbonate,potassium chloride, potassium hydroxide, Caustic Soda, Soda Ash

3. Contract Models

3.1 Rate Contract

3.2 Mud Services

3.3 Integrated Services

3.4 Rental contract

4. Environmental Regulations

4.1 Disposal and Environmental regulations

5. Industry Analysis

5.1 Porter’s Analysis

6. Supplier Analysis

6.1 Supplier Profiling

6.2 Exhaustive supplier list

Global Market Outlook on Oil Field Chemicals

The drilling fluid market is expected to reach $11 billion in 2021, growing at a CAGR of 2–3 percent. Due to decrease in crude oil prices, drilling fluid prices have come down drastically in the last two years
Rig count is the major price driver of drilling fluids. In the US, from mid 2015, 350 wells have been shut and 200 wells havenot started operations, which has reduced the demand
Australia witnessed a mild increase in rig count during the last two years, as explorations were flourishing the market, which led to increased demand

Xanthan Gum: Market Dynamics

Xanthan gum is used as a water viscosity reducer in varied applications. The demand is expected to grow at a rapid CAGR of above 6 percent during 2017–2021, mainly due to its application in the food and oil & gas industries

Positive regulatory support from the European and US administration for the usage of Xanthan gum as stabiliser, emulsifier, thickener and gelling agent is expected to keep the demand from food industries robust
In the oil and gas industry, it is used as drilling fluids as well as in EOR methods to reduce the mobility of water. Recently, after the oil price crash, many EOR schemes have been shelved and reduced the growth for demand, however, any firming up of oil price will rapidly increase the demand for Xanthan gum
Guar gum, a substitute for Xanthan gum, is likely to impact the demand growth; however, the production of Guar gum is highly uncertain, as the output depends mainly upon the yield of Guar beans from the Indian market

Barite: Market Dynamics

The supply of Barite is highly correlated to the price of oil and gas, since usage of Barite in drilling fluid is the single largest consuming sector. With stabilising oil prices and shale gas drilling in the US, the demand for Barite is expected to grow at a CAGR of around 3.7 percent

China produces approx. 3 million tonnes of Barite that account for about 40 percent of global production. The current production is way lower than the production during 2010–2011, when the prices of oil were in peak
China has set an aggressive goal of producing 30 BCM of gas by 2020 by drilling more shale gas wells. This, in turn, is expected to increase the domestic consumption and reduce the amount of Barite available for exports
If the current lowering Barite output from China persists, by 2020, China is expected to become a net importer of Barite. As a result, supply is expected to become tight

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