World Oilfield Chemical Demand to Approach $21 Billion in 2014

World demand for oilfield chemicals is projected to increase 8.6 percent annually to nearly $21 billion in 2014.  Gains will be the result of recovery in the oil and gas industry from a subpar 2009, a year of declines in oil and gas production, rig counts and drilling activity in many of the major markets, including the United States and Canada.  Going forward, an expected increase in global oil and gas prices will create impetus for additional drilling and well completion activity, which drive demand for oilfield chemicals. Drilling fluids will remain the largest product category through 2014.  However, stimulation and enhanced oil recovery chemicals are projected to register the fastest growth during that same period.  These and other trends, including market share and product segmentation, are presented in World Oilfield Chemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

In the North American market, which will remain the largest regional market for oilfield chemicals, growth will also be above the world average.  The large US market -- one of the most intensive users of oilfield chemicals -- will register healthy advances, prompted by increased drilling activity in shale gas formations and other unconventional production settings following a downturn in 2009.  The Canadian market is expected to recover from particularly steep declines in 2009.  In Mexico, production declines will hamper growth to some extent.  However, more aggressive attempts to sustain production levels will boost demand for chemicals used in stimulation processes and other efforts.

Across the board, growth for oilfield chemical demand will be strong.  The fastest advances are expected for Central and South America.  Oil and gas production gains in the region will be well above the global average.  Brazil will continue its ascendancy to a spot among the world’s oil powerhouses, Argentina will rebound from a disappointing 2009, and several other countries are expected to increase hydrocarbon production.  Gains in the Asia/Pacific region will come mainly from China, due to ongoing efforts to meet growing domestic energy needs with domestic oil and gas production from aging oilfields. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.