Oilfield Chemicals

As Quoted In Upstream Pumping Solutions

Strong gains in volume demand will be driven by increasing drilling activity, oil and gas production, and use of technologies such as hydraulic fracturing and enhanced oil recovery (EOR).

US demand to rise 2.1% annually through 2017

Demand for oilfield chemicals in the US is forecast to rise 2.1 percent annually through 2017 to $10.5 billion. Following rapid growth between 2002 and 2012, chemical volumes will continue to see strong gains, driven by increasing drilling activity, oil and gas production, and use of technologies such as hydraulic fracturing and enhanced oil recovery (EOR). However, growth in value terms will be restrained by lower prices for guar gum, an important oilfield chemical product that saw a price spike in 2012.

Well stimulation to remain dominant application

Hydraulic fracturing has become one of the most widely used and important oilfield technologies in the US, making well stimulation the largest application for oilfield chemicals. Growth in fracturing activity is expected to continue this trend, with both the number of fractured wells and the average volume of fluids per well continuing to increase. Of the chemicals used in fracturing, guar gum has presented unique challenges to the industry due to sharp price increases, which peaked in early 2012. Helping to offset the industry’s reliance on this commodity will be the rising use of slickwater fracturing -- which does not use guar -- as well as efforts to find alternative polymers that can match guar’s performance. Other chemicals that have benefited from the growth in fracturing include friction reducers, surfactants, gases, and a variety of other products.

Drilling activity is expected to remain elevated through the forecast period, driving demand for chemicals used in both drilling and completion. Demand will be strong for chemicals, such as friction reducers and shale inhibitors, with the ability to increase drilling efficiency and reduce rig time, improve well productivity through reduction of formation damage, and better the environmental profile of formulated products. As the industry has turned to development of unconventional resources, many of the associated formations have required the performance of oil-based drilling fluids. However, as the performance of water-based drilling fluids continues to improve, they will see increasing use even in difficult drilling conditions where oil-based muds have traditionally been the preferred choice. Offshore drilling, which is expected to rebound going forward, will support strong demand for both synthetic drilling fluids and high density completion brines.

Other important oilfield chemical applications -- such as cementing, production, and EOR -- will also see healthy growth. Production of oil and gas in the US is expected to continue to grow, while the mature nature of most US oilfields results in rising water cuts in the production stream.

Study coverage

This study analyzes the $9.5 billion US oilfield chemical industry. It presents historical demand data for 2002, 2007 and 2012, and forecasts for 2017 and 2022 by application (e.g., stimulation fluid additives, drilling fluid additives, production chemicals, cement additives, completion and workover fluid additives, EOR products) and product (polymers, specialty chemicals, commodity chemicals, gases).

The study also considers market environment and technology factors, details industry structure, evaluates company market share and profiles 37 industry players, including Baker Hughes, Halliburton and Schlumberger.

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Purchase Oilfield Chemicals by the Section

  1. Oilfield Chemicals

    $5,100.00

    1. 1 INTRODUCTION

      $152.00

    2. 2 EXECUTIVE SUMMARY

      $146.00

      1. Table | OILFIELD CHEMICAL DEMAND (million dollars)

    3. 3 MARKET ENVIRONMENT

      $2,473.00

      1. 3.1 General

        $113.00

      2. 3.2 Macroeconomic Environment

        $182.00

        1. Table | MACROECONOMIC INDICATORS (billion 2005 dollars)

      3. 3.3 Petroleum & Natural Gas Outlook

        $1,110.00

        1. Table | US OIL & NATURAL GAS FIELD PRODUCTION (quadrillion Btu)

        2. 3.3.1 Natural Gas

          $365.00

          1. Table | US NATURAL GAS SUPPLY & DEMAND (trillion cubic feet)

          2. Table | US NATURAL GAS PRODUCTION BY TYPE, 2002-2022 (percentage of total)

          3. Table | US NATURAL GAS RESERVES, 2002-2012 (trillion cubic feet)

          4. Table | US NATURAL GAS RESERVES BY STATE, 2012 (334 trillion cubic feet)

          5. Table | US NATURAL GAS PRODUCTION, 2002-2012 (trillion cubic feet)

          6. Table | NATURAL GAS DRILLING INDICATORS

          7. Table | NATURAL GAS DRILLING INDICATORS, 2002-2012 (percent change)

          8. Table | NATURAL GAS WELLHEAD PRICES, 2002-2012 (dollars per thousand cubic feet)

        3. 3.3.2 Petroleum

          $404.00

          1. Table | US PETROLEUM SUPPLY & DEMAND (million barrels)

          2. Table | US CRUDE OIL IMPORTS BY SOURCE, 2012 (3.1 billion barrels)

          3. Table | US PETROLEUM RESERVES, 2002-2012 (billion barrels)

          4. Table | US CRUDE OIL RESERVES BY STATE, 2012 (29.0 billion barrels)

          5. Table | US PETROLEUM PRODUCTION, 2002-2012 (million barrels)

          6. Table | CRUDE OIL PRODUCING STATES, 2012 (2376 million barrels)

          7. Table | PETROLEUM DRILLING INDICATORS

          8. Table | PETROLEUM DRILLING INDICATORS, 2002-2012 (percent change)

          9. Table | PETROLEUM PRICES, 2002-2012 (dollars per barrel)

        4. 3.3.3 Unconventional Resources

          $197.00

      4. 3.4 Oilfield Services Outlook

        $119.00

        1. Table | OILFIELD SERVICES INDICATORS

      5. 3.5 Enhanced Oil Recovery

        $140.00

        1. Table | ENHANCED OIL RECOVERY (EOR)

      6. 3.6 Historical Market Trends

        $120.00

        1. Table | OILFIELD CHEMICAL MARKET, 2002-2012

        2. Table | OILFIELD CHEMICAL MARKET, 2002-2012: OILFIELD CHEMICAL DEMAND & OIL & GAS PRODUCTION (percent change)

        3. Table | OILFIELD CHEMICAL MARKET, 2002-2012: OILFIELD CHEMICAL DEMAND, OIL PRICES, &ACTIVE RIG COUNT (percent change)

      7. 3.7 Pricing Trends

        $247.00

        1. 3.7.1 Formulated Fluids

          $90.00

        2. 3.7.2 Oilfield Chemicals

          $113.00

          1. Table | SELECTED OILFIELD CHEMICAL PRODUCT PRICES (dollars per pound)

      8. 3.8 Environmental & Regulatory Considerations

        $238.00

      9. 3.9 Foreign Trade

        $82.00

      10. 3.10 World Oilfield Chemicals Outlook

        $144.00

    4. 4 TECHNOLOGY

      $1,083.00

      1. 4.1 General

        $93.00

      2. 4.2 Drilling Technologies

        $363.00

        1. 4.2.1 Directional Drilling

          $82.00

        2. 4.2.2 Horizontal & Multilateral Drilling

          $128.00

        3. 4.2.3 Dual-Gradient Drilling

          $82.00

        4. 4.2.4 Other Drilling Technologies

          $82.00

      3. 4.3 Well Stimulation Technologies

        $422.00

        1. 4.3.1 Hydraulic Fracturing

          $187.00

        2. 4.3.2 Gas Fracturing

          $82.00

        3. 4.3.3 Multistage Fracturing

          $82.00

        4. 4.3.4 Acidizing

          $82.00

        5. 4.3.5 Other Well Stimulation Technologies

          $82.00

      4. 4.4 Enhanced Oil Recovery

        $205.00

        1. 4.4.1 Thermal Recovery

          $82.00

        2. 4.4.2 Gas Recovery

          $82.00

        3. 4.4.3 Chemical Recovery

          $82.00

        4. 4.4.4 Other EOR Methods

          $82.00

    5. 5 FORMULATED FLUIDS OUTLOOK

      $1,546.00

      1. 5.1 General

        $103.00

        1. Table | FORMULATED FLUID DEMAND BY TYPE (million dollars)

        2. Table | FORMULATED FLUID DEMAND BY TYPE, 2012 ($12.9 billion)

      2. 5.2 Stimulation Fluids

        $441.00

        1. Table | STIMULATION FLUID DEMAND (million dollars)

        2. 5.2.1 Crosslinked & Linear Gels

          $105.00

          1. Table | CROSSLINKED & LINEAR GEL FRACTURING FLUID DEMAND (million dollars)

        3. 5.2.2 Slickwater Fracturing Fluids

          $91.00

          1. Table | SLICKWATER FRACTURING FLUID DEMAND (million dollars)

        4. 5.2.3 Other Stimulation Fluids

          $128.00

          1. Table | OTHER STIMULATION FLUID DEMAND (million dollars)

      3. 5.3 Drilling Fluids

        $667.00

        1. Table | DRILLING FLUID DEMAND BY TYPE (million dollars)

        2. Table | DRILLING FLUID DEMAND BY TYPE, 2012: VALUE & VOLUME By Value: ($3.5 billion) By Volume: (3.6 billion gallons)

        3. 5.3.1 Oil-Based Drilling Fluids

          $82.00

          1. Table | OIL-BASED DRILLING FLUID DEMAND (million dollars)

        4. 5.3.2 Water-Based Drilling Fluids

          $102.00

          1. Table | WATER-BASED DRILLING FLUID DEMAND (million dollars)

        5. 5.3.3 Synthetic-Based Drilling Fluids

          $82.00

          1. Table | SYNTHETIC-BASED DRILLING FLUID DEMAND (million dollars)

        6. 5.3.4 Demand by Location

          $122.00

          1. Table | DRILLING FLUID DEMAND BY LOCATION

        7. 5.3.5 Market Share

          $107.00

          1. Table | DRILLING FLUID MARKET SHARE, 2012 ($3.5 billion)

      4. 5.4 Completion & Workover Fluids

        $234.00

        1. Table | COMPLETION & WORKOVER FLUID DEMAND

        2. 5.4.1 Product Characteristics

          $82.00

        3. 5.4.2 Market Share

          $82.00

          1. Table | COMPLETION FLUID MARKET SHARE, 2012 ($675 million)

      5. 5.5 Cement Slurries

        $100.00

        1. Table | OILFIELD CEMENT SLURRY DEMAND

    6. 6 OILFIELD CHEMICAL APPLICATIONS

      $2,166.00

      1. 6.1 General

        $102.00

        1. Table | OILFIELD CHEMICAL PRODUCT DEMAND BY APPLICATION (million dollars)

      2. 6.2 Stimulation Fluid Additives

        $517.00

        1. Table | STIMULATION FLUID ADDITIVE DEMAND (million dollars)

        2. 6.2.1 Gelling Agents

          $122.00

          1. Table | GELLING AGENT DEMAND (million dollars)

        3. 6.2.2 Biocides

          $82.00

          1. Table | BIOCIDE DEMAND

        4. 6.2.3 Breakers

          $82.00

          1. Table | BREAKER DEMAND

        5. 6.2.4 Crosslinking Agents

          $82.00

          1. Table | CROSSLINKING AGENT DEMAND

        6. 6.2.5 Other Stimulation Fluid Additives

          $102.00

          1. Table | OTHER STIMULATION FLUID ADDITIVE DEMAND (million dollars)

      3. 6.3 Drilling Fluid Additives

        $444.00

        1. Table | DRILLING FLUID ADDITIVE DEMAND (million dollars)

        2. 6.3.1 Weighting Materials

          $104.00

          1. Table | DRILLING FLUID WEIGHTING MATERIAL DEMAND (million dollars)

        3. 6.3.2 Viscosifiers

          $84.00

          1. Table | DRILLING FLUID VISCOSIFIER DEMAND (million dollars)

        4. 6.3.3 Shale Inhibitors

          $82.00

          1. Table | SHALE INHIBITOR DEMAND

        5. 6.3.4 Other Additives

          $102.00

          1. Table | OTHER DRILLING FLUID ADDITIVE DEMAND (million dollars)

      4. 6.4 Production Chemicals

        $514.00

        1. Table | OILFIELD PRODUCTION CHEMICAL DEMAND (million dollars)

        2. 6.4.1 Corrosion & Scale Inhibitors

          $90.00

          1. Table | CORROSION & SCALE INHIBITOR DEMAND IN OILFIELD PRODUCTION

        3. 6.4.2 Demulsifiers

          $92.00

          1. Table | DEMULSIFIER DEMAND IN OILFIELD PRODUCTION

        4. 6.4.3 Asphaltene & Paraffin Inhibitors

          $82.00

          1. Table | ASPHALTENE & PARAFFIN INHIBITOR DEMAND IN OILFIELD PRODUCTION

        5. 6.4.4 Other Production Chemicals

          $134.00

          1. Table | OTHER PRODUCTION CHEMICAL DEMAND (million dollars)

      5. 6.5 Cement Additives

        $357.00

        1. Table | CEMENT ADDITIVE DEMAND (million dollars)

        2. 6.5.1 Fluid Loss Control Additives

          $82.00

          1. Table | CEMENT FLUID LOSS CONTROL ADDITIVE DEMAND

        3. 6.5.2 Accelerators & Retarders

          $82.00

          1. Table | CEMENT ACCELERATOR & RETARDER DEMAND

        4. 6.5.3 Extenders

          $82.00

          1. Table | CEMENT EXTENDER DEMAND

        5. 6.5.4 Other Additives

          $82.00

          1. Table | OTHER CEMENT ADDITIVE DEMAND

      6. 6.6 Completion & Workover Fluid Additives

        $104.00

        1. Table | COMPLETION & WORKOVER FLUID ADDITIVE DEMAND (million dollars)

      7. 6.7 Enhanced Oil Recovery (EOR) Products

        $127.00

        1. Table | ENHANCED OIL RECOVERY (EOR) PRODUCT DEMAND (million dollars)

    7. 7 OILFIELD CHEMICAL PRODUCTS

      $1,843.00

      1. 7.1 General

        $96.00

        1. Table | OILFIELD CHEMICAL PRODUCT DEMAND BY TYPE (million dollars)

        2. Table | OILFIELD CHEMICAL PRODUCT DEMAND BY TYPE, 2012 ($9.5 billion)

      2. 7.2 Polymers

        $452.00

        1. Table | POLYMER DEMAND IN OILFIELD APPLICATIONS (million dollars)

        2. Table | POLYMER DEMAND, 2012 ($4.4 billion)

        3. 7.2.1 Natural & Synthetic Gums

          $187.00

          1. Table | NATURAL & SYNTHETIC GUM DEMAND IN OILFIELD APPLICATIONS (million dollars)

        4. 7.2.2 Cellulose & Starch Polymers

          $90.00

          1. Table | STARCH & CELLULOSE POLYMER DEMAND IN OILFIELD APPLICATIONS

        5. 7.2.3 Polyacrylamides

          $82.00

          1. Table | POLYACRYLAMIDE DEMAND IN OILFIELD APPLICATIONS

        6. 7.2.4 Other Polymers

          $82.00

          1. Table | OTHER POLYMER DEMAND IN OILFIELD APPLICATIONS

      3. 7.3 Specialty Chemicals

        $449.00

        1. Table | SPECIALTY CHEMICAL DEMAND IN OILFIELD APPLICATIONS (million dollars)

        2. Table | SPECIALTY CHEMICAL DEMAND, 2012 ($2.4 billion)

        3. 7.3.1 Corrosion & Scale Inhibitors

          $82.00

          1. Table | CORROSION & SCALE INHIBITOR DEMAND IN OILFIELD APPLICATIONS

        4. 7.3.2 Biocides

          $85.00

          1. Table | BIOCIDE DEMAND IN OILFIELD APPLICATIONS

        5. 7.3.3 Demulsifiers

          $82.00

          1. Table | DEMULSIFIER & RELATED PRODUCT DEMAND IN OILFIELD APPLICATIONS

        6. 7.3.4 Other Specialty Chemicals

          $93.00

          1. Table | OTHER SPECIALTY CHEMICAL DEMAND IN OILFIELD APPLICATIONS

      4. 7.4 Commodity Chemicals

        $466.00

        1. Table | COMMODITY CHEMICAL PRODUCT DEMAND IN OILFIELD APPLICATIONS (million dollars)

        2. Table | COMMODITY CHEMICAL DEMAND, 2012 ($1.8 billion)

        3. 7.4.1 Barite

          $114.00

          1. Table | BARITE DEMAND IN OILFIELD APPLICATIONS

        4. 7.4.2 Acids

          $93.00

          1. Table | ACID DEMAND IN OILFIELD APPLICATIONS (million dollars)

        5. 7.4.3 Clays

          $91.00

          1. Table | CLAY DEMAND IN OILFIELD APPLICATIONS (million dollars)

        6. 7.4.4 Other Commodity Chemicals

          $82.00

          1. Table | OTHER COMMODITY CHEMICAL DEMAND IN OILFIELD APPLICATIONS

      5. 7.5 Gases

        $378.00

        1. Table | GAS DEMAND IN OILFIELD APPLICATIONS (million dollars)

        2. 7.5.1 Carbon Dioxide

          $142.00

          1. Table | MERCHANT CARBON DIOXIDE DEMAND IN OILFIELD APPLICATIONS (million dollars)

        3. 7.5.2 Nitrogen

          $109.00

          1. Table | NITROGEN DEMAND IN OILFIELD APPLICATIONS

    8. 8 INDUSTRY STRUCTURE

      $4,886.00

      1. 8.1 General

        $120.00

        1. Table | US OILFIELD CHEMICAL SALES BY COMPANY, 2012 (million dollars)

      2. 8.2 Market Share

        $197.00

        1. Table | US OILFIELD CHEMICAL MARKET SHARE, 2012 ($9.5 billion)

      3. 8.3 Competitive Strategies

        $201.00

      4. 8.4 Marketing & Distribution

        $138.00

      5. 8.5 Research & Development

        $82.00

        1. Table | RESEARCH & DEVELOPMENT EXPENDITURES FOR SELECTED OILFIELD CHEMICAL FIRMS, 2008-2012 (percent of total company sales)

      6. 8.6 Company Profiles

        $4,156.00

        1. 8.6.1 Air Products and Chemicals Incorporated

          $83.00

        2. 8.6.2 Akzo Nobel NV

          $130.00

        3. 8.6.3 Albemarle Corporation

          $86.00

        4. 8.6.4 AMCOL International Corporation

          $112.00

        5. 8.6.5 Ashland Incorporated

          $117.00

        6. 8.6.6 Baker Hughes Incorporated

          $210.00

        7. 8.6.7 BASF SE

          $125.00

        8. 8.6.8 Berkshire Hathaway Incorporated

          $82.00

        9. 8.6.9 Capitol Aggregates Limited

          $82.00

        10. 8.6.10 Chemtura Corporation

          $82.00

        11. 8.6.11 Chevron Phillips Chemical Company LLC

          $112.00

        12. 8.6.12 Clariant International Limited

          $130.00

        13. 8.6.13 Croda International plc

          $172.00

        14. 8.6.14 Dow Chemical Company

          $146.00

        15. 8.6.15 DuPont (EI) de Nemours

          $82.00

        16. 8.6.16 Ecolab Incorporated

          $285.00

        17. 8.6.17 Elementis plc

          $98.00

        18. 8.6.18 Emery Oleochemicals Group

          $82.00

        19. 8.6.19 Enerchem International Incorporated

          $82.00

        20. 8.6.20 GEO Drilling Fluids Incorporated

          $82.00

        21. 8.6.21 Halliburton Company

          $247.00

        22. 8.6.22 Israel Chemicals Limited

          $84.00

        23. 8.6.23 Kemira Oyj

          $101.00

        24. 8.6.24 Kinder Morgan Energy Partners LP

          $120.00

        25. 8.6.25 Koch Industries Incorporated

          $82.00

        26. 8.6.26 Lafarge SA

          $82.00

        27. 8.6.27 Messina Incorporated

          $92.00

        28. 8.6.28 National Oilwell Varco Incorporated

          $82.00

        29. 8.6.29 Newpark Resources Incorporated

          $173.00

        30. 8.6.30 Nexeo Solutions LLC

          $82.00

        31. 8.6.31 Occidental Petroleum Corporation

          $86.00

        32. 8.6.32 Praxair Incorporated

          $82.00

        33. 8.6.33 Roemex Limited

          $82.00

        34. 8.6.34 Schlumberger Limited

          $252.00

        35. 8.6.35 Solvay SA

          $100.00

        36. 8.6.36 TETRA Technologies Incorporated

          $97.00

        37. 8.6.37 Weatherford International Limited

          $162.00

      7. 8.7 Other Companies Mentioned in Study

        $82.00

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