February 22, 2024

The Global Oilfield Stimulation Chemicals Market is Driven by Increasing Shale Gas Exploration and Production Activities

Oilfield stimulation chemicals are specialty chemicals used during the process of oil and gas extraction from reservoirs. These chemicals improve the productivity of oil and gas wells by increasing permeability of the formation and creating conductive cracks in the rocks. They enhance extraction rates and maximize recovery from mature oil and gas assets. Key functions of oilfield stimulation chemicals include preventing scale deposits, corrosion of pipes, and bacterial growth. They stabilize foams used for enhanced oil recovery and improve viscosity and friction reduction during hydraulic fracturing. The global oilfield stimulation chemicals market is highly competitive with vendors offering formulation expertise, application know-how, and product quality.

The global Oilfield Stimulation Chemicals Market is estimated to be valued at US$ 4.27 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the oilfield stimulation chemicals market is the growing adoption of environmentally acceptable and eco-friendly chemical formulations. With increasing concerns about pollution and toxicity caused by oil and gas operations, major players are investing in research & development of bio-based and renewable chemicals. These green chemicals minimize contamination of air and water during extraction and offer comparable well stimulation performance. They can be rapidly biodegraded and are less hazardous compared to conventional petroleum-derived chemicals. The transition towards greener chemicals is expected to further boost the oilfield stimulation chemicals market over the forecast period.

Porter’s Analysis

  • Threat of new entrants: The threat of new entrants is moderate as the oilfield stimulation chemicals market is a well-established industry with high capital requirements.
  • Bargaining power of buyers: The bargaining power of buyers is high as there are numerous oilfield stimulation chemical suppliers and buyers can negotiate for better prices.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as they depend on major oilfield service providers for demand.
  • Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives to oilfield stimulation chemicals for improved oil recovery.
  • Competitive rivalry: The competitive rivalry is high between existing players due to their large market shares and wide global presence.

Key Takeaways

The global oilfield stimulation chemicals market is expected to witness high growth. The global Oilfield Stimulation Chemicals Market is estimated to be valued at US$ 4.27 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030.

Regional analysis: North America dominates the market currently primarily due to increasing oil and gas production from unconventional resources such as shale gas and tight oil in the US. However, Asia Pacific market is expected to witness highest growth over the forecast period with increasing activities in China, India, Indonesia, Australia and Malaysia.

Key players: Key players operating in the oilfield stimulation chemicals market are Baker Hughes, Schlumberger, Halliburton, BASF SE, Huntsman Corporation, Croda International Plc, AkzoNobel, The Dow Chemical Company, DuPont de Nemours, Inc., and Solvay. Baker Hughes and Schlumberger collectively account for over 40% of the global market share.