July 21, 2024

The Growing Energy Demand To Drive The Growth Of Crude Oil Flow Improvers Market

The global Crude Oil Flow Improvers Market is estimated to be valued at US$ 1.67 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Crude oil flow improvers are specialty surfactants and polyelectrolytes added in small concentrations to crude oil during extraction, production, transportation, and processing activities. They aid in preventing deposition and removal of wax, asphaltenes and other solids and help enhance the flow characteristics of crude oil under conditions of varying temperature and pressure. Crude oil flow improvers provide advantages such as reducing pressure drops, enabling high production rates as well as decreasing production and transportation costs. The products find widespread application across onshore and offshore oilfields.

Market Key Trends:

One of the key trends in the crude oil flow improvers market is the growing demand for energy worldwide. Global energy consumption is expected to rise significantly in the coming years owing to factors such as rapid industrialization, urbanization and rising population. This will necessitate increasing crude oil production from both mature as well as newer oilfields to meet energy needs. Use of crude oil flow improvers allows efficient extraction of hydrocarbon reserves under challenging reservoir conditions thereby supporting higher production levels and efficient transportation of crude oil.

Porter’s Analysis:

  • Threat of new entrants: Low barriers to entry in terms of technology and capital requirements limit the threat of new entrants. However, established brands have economies of scale.
  • Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, switching costs are relatively low.
  • Bargaining power of suppliers: A few large multinational companies dominate the supply market. This gives them significant bargaining power over customers.
  • Threat of new substitutes: New product innovation is introducing alternatives that can impact the market. However, established crude oil flow improvers are difficult to replace fully.
  • Competitive rivalry: The market is highly competitive with major players differentiating through product innovation and brand promotions.

Key Takeaways:

The global Crude Oil Flow Improvers Market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing demand for crude oil from emerging economies. The market size for 2023 is estimated to be US$ 1.67 Bn.

Regional analysis: North America dominates the market currently due to high crude oil production and growing exploration & production activities in the region. Asia Pacific is expected to grow at the fastest pace, driven by rapid industrialization and increasing energy demand from China and India.

Key players: Key players operating in the Crude Oil Flow Improvers market are Halliburton Company, BASF SE, LiquidPower Specialty Products Inc., Schlumberger Ltd., Baker Hughes, A GE Company, Nalco Champion, Clariant AG, Evonik Industries AG, Infineum International Limited, Innospec Inc., and others. Halliburton Company and BASF SE are recognized as the market leaders due to their extensive product portfolio and global sales network.