Blog Information

• Posted By : Mark Smith
• Posted On : Jun 10, 2024
• Views : 97
• Category : General
• Description : Oilfield chemicals can be utilized in all stages throughout the process, which can include upstream to downstream
• Location : United States

Overview

• Oilfield chemicals can be utilized in all stages throughout the process, which can include upstream to downstream. This chemical compound commonly can be found in the oil and gas industry. It can contribute to increasing efficiency and productivity in the petroleum refining and oil drilling process. These chemicals can be added to workover fluids, production sites, or well drilling. It aims to maximize the performance and efficiency of oil recovery.
  
  
  There are also specialty chemicals, on which the oil and gas industry relies heavily for numerous activities. The example of this product includes petroleum sulfonate, xanthan gum, or anionic polyacrylamide.
  
  In another industry, the categories of specialty chemicals can be segmented into cleaning materials, construction chemicals, adhesives, among others.
  
  As there is an increased application of this chemical in the oil and gas industry, there has been a noticeable surge in the oilfield chemicals market. A research firm, GMI Research, estimated that oilfield chemicals market size would achieve USD 30.6 billion in 2029.
  
  What is It For?
  
  This chemical plays a critical role in many stages of the petroleum industry, such as drilling and cementing.
  
  1. Drilling
  In oil and gas exploration, time is the enemy. The developers have to maximize product output in a limited time. Chemical fluids can help the drilling process to be faster and deeper, despite the challenging situations. This chemical also can help to address many challenges that can occur by stabilizing precarious rock surfaces, lubricating, managing reservoir pressure, and other assistance during the drilling process.
  
  2. Cementing
  Cementing is preparing the wells for drilling and production process in the oil and gas industry. The oilfield chemicals can help to address issues that may occur in the process, by controlling lost circulation, controlling gas migration, and fluid loss.
  
  3. Fracturing and stimulation
  Compared to traditional methods, fracturing enables larger production and in a wider variety of locations. To deal with environmental situations like temperatures and formations, operators need the help from oilfield chemicals to enhance likelihood of successful well stimulation.
  
  Why is There an Increase in Demand?
  
  There are various variables that can drive the demand of oilfield chemicals in the oil and gas industry.
  
  1. The demand for petroleum-based products
  Recently, there has been a rising interest in products from petroleum, particularly from the transportation industry. This industry has seen a significant expansion due to the development of logistic facilities, growing economic activities, and changing patterns in travelling behavior.
  
  2. Technological enhancements in deepwater drilling operations
  This chemical can also play an important role in a water drilling process. As there are technological enhancements in deepwater drilling operations, there has been an increase in business, production, and exploration opportunities, which further fuel the growth of this market.
  
  3. The expanding exploration of shale gas worldwide
  Shale gas exploration will need this chemical in order to enhance productivity of the extraction process and to ensure environmental protection.
  
  The Challenges
  
  However, there are also some challenges that can hamper the growth of this market.
  
  1. Governments’ clean energy initiatives
  As there are environmental concerns, many governments are promoting the use of renewable energy in an attempt to reduce emissions. This shift from the conventional energy can gradually lower the demand for oil. That being said, it can also serve as an opportunity, as it can drive the use of eco-friendly oilfield chemicals. Such innovations can be a chance for the market to further expand.
  
  2. Oil supply disruption
  The limited availability can be an issue in the supply chain. Because of scarcity, there can be an increase in crude oil prices, which can hinder the growth of this market.