Oil Field Chemicals Market Intelligence

Report Coverage

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

Market Size

Global Market Size

$8.67 Bn


3 - 4 Percent

Table of contents

  1. Executive Summary
  2. Market Overview
  3. Supply demand overview
  4. Contract models overview
  1. Market Analysis
  2. Drilling fluids Classification
  3. Drilling Fluid market size
  4. Market Analysis for - Bentonite, Barite, Xanthum gum, Calcium Carbonate,potassium chloride, potassium hydroxide, Caustic Soda, Soda Ash
  1. Contract Models
  2. Rate Contract
  3. Mud Services
  4. Integrated Services
  5. Rental contract
  1. Environmental Regulations
  2. Disposal and Environmental regulations
  1. Industry Analysis
  2. Porter’s Analysis
  1. Supplier Analysis
  2. Supplier Profiling
  3. Exhaustive supplier list

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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

Oil Field Chemicals Market Size

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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