MENA Specialty Oilfield Chemicals Market – Industry Trends and Forecast to 2030

MENA Specialty Oilfield Chemicals Market, By Type (Surfactants, Demulsifiers, Inhibitors, Biocides, Fluid Loss Additives, Rheology Modifiers, Foamers, Polymers, Lubricants/Friction Reducers, Pour Point Depressant, Iron Control Agents, Scavenger, Gellants and Viscofiers, Retarders, and Others), By Application  (Drilling, Well Stimulation, Production, and Enhanced Oil Recovery (EOR), Cement, Workover & Completion, and Others), Specialty Oilfield Location (Onshore and Offshore) - Industry Trends and Forecast to 2030.

MENA Specialty Oilfield Chemicals Market Analysis and Insights

The modern chemical industry is highly dependent on crude oil and natural gas feedstocks. Chemical engineering joins petroleum engineering to play an important role in the production of oil and gas products. The use of oil field specialty chemicals is more efficient drill and operate oil and gas wells and enhancing the productivity of the field's reservoirs and will grow as the petroleum industry becomes more dependent on increasing the production of crude oil or petroleum products from existing fields.

Oil field specialty chemicals are manufactured from chemicals that are made up of different chemical compositions which help in separation, bonding, and strengthening. Oil field specialty chemicals are mixtures of natural and synthetic chemical compounds which are used to cool and lubricate the drill, clean the hole bottom of drilling equipment, carry cuttings to the surface, control formation pressures, and control downhole formation pressures. Oil field specialty chemicals products have unique properties which makes products the ideal solution in many different applications. Specialty chemical products are used to reduce the swelling of the subterranean formation in the presence of water.

However, the price of crude oil as it impacts the usage of oil field specialty chemicals products for the extraction of crude oil, and increasing stringent environmental regulations and geopolitical issues may restrain the growth of the market in the forecast period.

The rising strategic initiatives by market players are giving opportunities for the market to grow. However, high competition in the oil industries and long lead times for overseas qualifications are key challenges to market growth. Data Bridge Market Research analyzes that the MENA specialty oilfield chemicals market is expected to reach a value of USD 241.80 million by 2030, at a CAGR of 4.1% during the forecast period. Type accounts for the largest service type segment in the market due to increasing demand for specialty chemicals in oilfield companies for the better treatment of oil and water. This market report also covers pricing analysis, patent analysis, and technological advancements in depth.

MENA Specialty Oilfield Chemicals Market Definition

The oil field specialty chemicals are those chemicals that are commonly used in the recovery of oil efficiently from the resources without impacting the environment and equipment. Oil field specialty chemicals have several positive functions such as improved oil recovery, drilling optimization, corrosion protection, preventing mud loss in different geological formations, stabilizing drilling fluid in high-pressure and high-temperature environments, and others. The usage of these chemicals helps to increase operational effectiveness, safeguard equipment, and boost the overall performance of oilfield operations at various phases of crude oil and natural gas exploration, production, transportation, and refining.

MENA Specialty Oilfield Chemicals Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:    

Drivers

• Increasing Extraction of Crude Oil from New and Unconventional Reserves

The crude oil is extracted from the deep inside land through several processes and giant drilling machines. Crude oil is found in vast underground reservoirs where ancient seas were located. Crude oil reservoirs can be found beneath land or the ocean floor. Conventional oil is extracted from underground reservoirs using traditional drilling and pumping methods. Conventional oil is a liquid at atmospheric temperature and pressure. Extraction of crude oil from unconventional reserves cannot be recovered using traditional drilling and pumping methods.

Advanced extraction techniques, such as oil sand mining and drilling, are being used to recover heavier oil that does not flow independently. The light-tight oil (LTO) unconventional reserves are found deep below the earth's surface, primarily within low-permeability rock formations, including shale, sandstone, and mudstone reservoirs. Extraction of crude oil from unconventional reserves uses horizontal drilling and hydraulic fracturing.

Oil field specialty chemicals are used in the machinery and equipment used to extract crude oil for reserves. Several types of research are also going on for finding new resources for crude oil. From crude oil, a wide range of products can be created: gas, petrol, kerosene, diesel oil, and ending up on asphalt. Oil field specialty chemicals help in the effective extraction of crude oil and lower the wastage of the material during the processes.

Thus, the increasing crude oil extraction from unconventional reserves will increase the demand for specialty chemicals in the oil field to a more significant extent, which is expected to drive market growth.

• Rise in the Demand for Petroleum in the Automotive Industry

The automotive industry is always on the rise in every region. The demand for cars, heavy-duty vehicles, and two-wheelers has increased, boosting the automotive industry's growth. The engines in the vehicles are run on burning petroleum products. The demand for automobiles has increased in developing countries, which has boosted the need for petroleum products.

Petroleum products are extracted from crude oil through several processes. Several types of oil field specialty chemicals are being used during the separation processes of by-products from crude oil. The oil field specialty chemicals increase the effectiveness of the operations, resulting in the production of desirable quality petroleum products.

In conclusion, the rising demand for petroleum products for different sectors will increase the need for oil field specialty chemicals for petroleum production in refining industries, which is expected to drive market growth.

Restraint

• Increasing Stringent Environmental Regulations and Geopolitical Issues

Oil and gas drilling has a severe impact on our wildlands and communities. Drilling projects operate around the clock, generating pollution, fueling climate change, disrupting wildlife, and damaging public lands. The rules regarding drilling in several regions are getting strict. Drilling has impacted the environment to a larger extent. Increasing oil and gas exploration activities without sufficient baseline data in deep-sea ecosystems has made environmental management challenges.

Infrastructure built for oil and gas extraction can leave behind radical impacts on wildlands. The construction of roads, facilities, and drilling sites requires heavy equipment and can destroy big chunks of pristine wilderness. Big oil spills are giant killers of wildlife and can cause long-lasting damage to marine ecosystems.

Drilling fluids injected into wells for lubrication are supposed to be captured in lined pits for disposal. However, the oil field specialty chemicals often leak and are splashed around drilling sites, impacting the environment. The increasing impact of reservoirs and chemicals on the ecosystem declines the demand for specialty chemicals products for the oil field.

In conclusion, more fluctuation in the crude oil price will result in manufacturers losing and not investing more in the market. The instability in demand for petroleum products is expected to restrain market growth.

Opportunity

• Better Production Methods and Improving Monitoring of Plant

In the oil and gas industries, manufacturers are shifting towards better production methods and techniques that can improve the product's quality. The equipment used in the extraction of crude oil and processing of crude oil for various products is becoming automated. The high quality of equipment is used in the extraction of crude oil. The adoption of new production techniques in the plant for oil extraction will increase the demand for the oil field specialty chemical.

Regular monitoring of the plant will help to lower the replacement cost of the equipment and losses also. In producing oil products, several types of toxic chemicals are also excreted, impacting plant life. The regular monitoring of the plant will have no impact on the quality of the product and the production capacity of the equipment can also increase. The oil field specialty chemical is applied on the surface according to the monitoring suggestions.

Thus, adopting new production techniques and regular monitoring of the plant will increase the demand for the oil field specialty chemicals, which is expected to create opportunities for market growth.

Challenges

• Reservoirs with higher Pressures/Temperatures and Concentrations of Different Substances

The presences of reservoirs are deep inside the sea or land from where the crude oil is extracted. The pools are present in different areas which experience additional pressure under the earth. Other types of gasses are present inside the earth's surface, increasing the temperature of reservoirs. The concertation of different substances is also present in the puddles, which is a challenge for the oil field specialty chemicals.

The fluctuation in reservoir pressure and temperature will affect the pipeline design and operations. Reservoir pressure is directly related to the wellhead pressure, which can affect the pipeline operating pressure. Very high reservoir pressure can require special metallurgy for the piping and oil field specialty chemicals, which can dramatically drive up the material cost. The presence of extremely high or low temperatures can also eliminate design flexibility.

The challenge which is faced by oil field specialty chemicals is that products must withstand the hostile environment. The drilling fluid must be chemically stable and non-corrosive under high pressure and temperature conditions. The physical and chemical behavior of cement changes significantly at elevated temperatures and pressure.

In conclusion, high pressure and temperature conditions and the concertation of different substances in reservoirs are expected to challenge market growth.

Recent Developments

• In August 2021, BASF SE, and SINOPEC to further expand their Verbund site in Nanjing, China which increases the production of several downstream chemical plants. This development helped the company to increase revenue shortly
• In November 2019, Baker Hughes Company decided to expand its chemical manufacturing capabilities with a new facility in Saudi Arabia. This development helped the company to fulfill the increasing demand for chemicals products in different applications
• In September 2019, Evonik Industries AG decided to increase the production capacity of specialty chemicals in Germany and decided to invest USD 441.00 million in the project. This development helped the company to increase venue and production capacity

MENA Specialty Oilfield Chemicals Market Scope

MENA specialty oilfield chemicals market is segmented into type, location, and application. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.

By Type

• Surfactants
• Demulsifiers
• Inhibitors
• Biocides
• Fluid Loss Additives
• Rheology Modifiers
• Foamers
• Polymers
• Lubricants/Friction Reducers
• Pour Point Depressant
• Iron Control Agents
• Scavenger
• Gellants And Viscosifiers
• Retarders
• Others

On the basis of type, MENA specialty oilfield chemicals market is segmented into surfactants, demulsifiers, inhibitors, biocides, fluid loss additives, rheology modifiers, foamers, polymers, lubricants/friction reducers, pour point depressant, iron control agents, scavenger, gellants and viscofiers, retarders, and others.

By Location

• Onshore
• Offshore

On the basis of specialty oilfield location, MENA specialty oilfield chemicals market is segmented into onshore and offshore

By Application

• Drilling
• Well Stimulation
• Production
• Enhanced Oil Recovery (Eor)
• Cement
• Workover & Completion
• Others

On the basis of application, MENA specialty oilfield chemicals market is segmented into drilling, well stimulation, production, enhanced oil recovery (EOR), cement, workover & completion, and others.

MENA Specialty Oilfield Chemicals Market Regional Analysis/Insights

The MENA specialty oilfield chemicals market is analyzed and market size information is provided for type, location, and application. The countries covered in this market report are Saudi Arabia, Iraq, the United Arab Emirates, Iran, Qatar, Kuwait, Algeria, Libya, Egypt, and the rest of MENA.

The Saudi Arabia segment is expected to dominate the MENA specialty oilfield chemicals market as companies are expanding their production capacities and entering into agreements across different regions to fulfill the growing demand for oilfield specialty chemicals products in the oil and gas industry reach.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Europe brands and their challenges faced due to large or scarce competition from local and domestic brands, and impact of sales channels are considered while providing forecast analysis of the country data.

Competitive Landscape and MENA Specialty Oilfield Chemicals Market Share Analysis

MENA specialty oilfield chemicals market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breath, application dominance, technology lifeline curve. The above data points provided are only related to the company’s focus on the MENA specialty oilfield chemicals market.

Some of the major players operating in the MENA specialty oilfield chemicals market are BASF SE, Solvay, Dow, Baker Hughes Company, Clariant, Evonik Industries AG, Kemira, Thermax Limited, Huntsman International LLC, Innospec, Stepan Company, EMEC, Chevron Phillips Chemical Company LLC, Versalis S.p.A, Halliburton, Albemarle Inc., ChampionX among others.