The United States oil and gas chemicals market covers a wide range of chemicals that are used in oil and gas extraction and production activities. These chemicals help in oil exploration, drilling, production, transportation and refining. Some key oil field chemicals and their functions include corrosion and scale inhibitors to prevent pipes and equipment from corrosion, paraffin inhibitors to prevent paraffin wax build up, solvents to dilute heavy crude oil, lubricants to reduce torque and drag between drilling pipes and the borehole, and biocides to kill bacteria.
The global United States Oil and Gas Chemicals Market Size is estimated to be valued at US$ 5.50 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024-2031.
Heavy investments in shale exploration and hydraulic fracturing have augmented the consumption of oil field chemicals in the United States. Furthermore, ageing oilfields require enhanced oil recovery techniques like polymer flooding which further boosts the demand for specialized oil field chemicals.
Key Takeaways
Key players operating in the United States oil and gas chemicals market are ExxonMobil, Chevron Corporation, Shell PLC, TotalEnergies SE, Baker Hughes and Among Others. The key players are focusing on developing bio-based and environmentally acceptable chemicals to meet the stringent environmental regulations.
The consumption of oil field chemicals is projected to grow significantly during the forecast period due to rising exploration and production activities in the oil & gas industry. Furthermore, the increasing complexity of oilfields has also increased the need for advanced oil field chemicals.
Oil field service providers and chemical companies are investing heavily in research & development to develop smart oil field chemicals and technologies like nano-enhanced chemicals and ultra-lightweight drilling fluids which can improve production efficiency from mature and complex fields.
Market Trends
- Bio-Based And Environmental Friendly Chemicals: With growing emphasis on reducing environmental footprint of oil & gas operations, major players are focusing on developing bio-based and eco-friendly substitutes for petroleum-based oil field chemicals.
- Multi-Functional Advanced Chemicals: Companies are developing multi-functional advanced chemicals that can perform combined functions of scaling, wax control, corrosion inhibition etc. to lower treatment costs.
Market Opportunities
- Tight Oil Formations: Continued development of tight oil reservoirs like Bakken and Permian basin through advanced extraction methods would need customized chemical solutions.
- Enhanced Oil Recovery: Large market potential for chemicals supporting mature EOR techniques like polymer flooding and chemical flooding to gain maximum oil recovery from legacy oilfields.
Impact of COVID-19 on United States Oil and Gas Chemicals Market:
The COVID-19 pandemic has adversely impacted the growth of the United States oil and gas chemicals market. Lockdowns and movement restrictions imposed due to the outbreak led to a decline in industrial and economic activities. With reduced demand from end-use industries like construction, automotive, etc., the consumption of oil and gas chemicals experienced a significant downturn in 2020. However, with vaccination drives gaining momentum, industrial activities are gradually recovering from 2021. While the road to full recovery remains long, demand is estimated to surge in the coming years propelled by infrastructure development projects, economic stimulus packages by the governments.
Despite short-term setbacks caused by COVID-19, the long-term outlook of the market remains positive. Key players are investing in capacity expansions to cater to the rising consumption. For instance, Chevron Corporation announced plans to raise production from its Gorgon Project in Western Australia. Companies are focusing on developing bio-based and eco-friendly chemicals to reduce dependency on fossil fuels. Governments are also supporting the transition to clean energy through incentives and regulations. While supply chain disruptions and volatile feedstock prices continue to pose challenges, investment in technology and energy transition trends are expected to stimulate market growth post-COVID.
United States Oil and Gas Chemicals Market by Geographical Regions:
In terms of value, Texas accounts for the major share in the United States oil and gas chemicals market. The state is home to prominent petrochemical complexes and refineries that manufacture a wide range of hydrocarbon derivatives. Texas leverages its competitive feedstock advantages and extensive midstream infrastructure to cater to rising regional demand. Its proximity to Mexico and the Gulf of Mexico further strengthens Texas' position as a leading exporter and supplier.
Another fast-growing region for the United States oil and gas chemicals market is the Gulf Coast. States like Louisiana, Mississippi, Alabama host large petrochemical facilities in the Gulf Coast region. Major players like ExxonMobil, Shell, Dow, etc. have established production bases to serve the oil rich Mont Belvieu and Beaumont market hubs. Plentiful natural gas reserves and well-developed port facilities are driving the Gulf Coast's emergence as a global petrochemical hub.
What Are The Key Data Covered In This United States Oil and Gas Chemicals Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United States Oil and Gas Chemicals's growth between 2024 and 2031.
:- Accurate calculation of the size of the United States Oil and Gas Chemicals and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United States Oil and Gas Chemicals Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United States Oil and Gas Chemicals vendors
FAQ’s
Q.1 What are the main factors influencing the United States Oil and Gas Chemicals?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United States Oil and Gas Chemicals companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United States Oil and Gas Chemicals’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
Get more insights on this topic: https://www.pressreleasebulletin.com/united-states-oil-and-gas-chemicals-market-trend-size-and-demand/
