Oilfield stimulation chemicals are specialty chemicals used to increase productivity from oil and gas wells. These chemicals help in enhancing the permeability of the target reservoir and create conductive paths for oil and gas to flow easily.
The global oilfield stimulation chemicals market is estimated to be valued at US$ 4.27 Bn or Mn 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:
Hydraulic fracturing consumes a major share of oilfield stimulation chemicals and is one of the major trends in the market. It involves pumping fluids and proppants, such as sand or ceramic beads, into underground geologic formations at high pressure. This creates and extends microfractures in tight reservoir rock formations, thereby increasing permeability and production rates. Advances in hydraulic fracturing techniques and ongoing research and development activities for new fracturing fluids are expected to drive the demand for oilfield stimulation chemicals over the forecast period.
- Strength: Oilfield stimulation chemicals play a vital role in enhancing productivity and maximizing hydrocarbon recovery. They help in improving reservoir permeability and flow characteristics.
- Weakness: Stringent government regulations regarding the use of chemicals can restrict market growth. Improper usage of stimulation chemicals could potentially lead to formation damage.
- Opportunity: Increasing oil & gas extraction activities worldwide due to rising energy demand presents significant growth opportunities. Growing shale gas production across regions expands the application scope.
Threats: Volatility in crude oil prices poses major challenges. Shift towards renewable and cleaner energy sources threatens demand.
The global Oilfield Stimulation Chemicals market is expected to witness high growth, exhibiting a CAGR of 3.3% over the forecast period, due to increasing oil & gas production worldwide. The market size for 2023 is estimated to reach US$ 4.27 Bn.
North America currently dominates the market and is expected to retain its leading position over 2023-2030, driven by rising shale gas production in the US. The Asia Pacific region is anticipated to grow at the fastest rate owing to increasing exploration & production activities by major countries like 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 companies are focusing on new product launches and mergers & acquisitions to strengthen their market presence.