Increased Shale Gas Exploration and Production
Shale gas is one of the lucrative methods of oil & gas explorations to meet the energy demands. The need to develop the reserves of oil and gas from shale formations requires activities, such as hydraulic fracturing and horizontal drilling, which encourage the use of oilfield chemicals. Europe holds a stable market for oilfield chemicals. The extraction natural gas from unconventional techniques has given rise to hydraulic fracturing and horizontal drilling and that has widen the potential of oilfield chemicals market in Europe. There are many European countries, such as France, Bulgaria, Netherlands, Germany, Scotland, etc. that have banned hydraulic fracking, due to environmental concerns. Europe shale gas resources have been estimated to be about 4/5th the size of those in the United States, yet there are many countries in Europe, such as Denmark, Poland and United Kingdom, actively seeking to increase the market share.
Well Stimulation to Dominate the Market
The well stimulation segment holds the largest share of oilfield chemicals by application. The chemicals used in this segment, include acid corrosion inhibitors, surfactants and non-emulsifiers. These provide excellent protection to oil well equipment, pumps and trucks from corrosion while working with acid, for well stimulation process. Surfactants reduce the surface tension of various acids, acid additives, and water fracturing. The best application of these chemicals is seen in the production from unconventional resource like shale gas and tight oil where there is a requirement of technologies, such as hydraulic fracturing and acidizing. Europe is expected to shift its focus to the exploration of shale in the North Sea, due to increasing requirement to attain energy self-sufficient. Hence, the well stimulation chemicals are supposed to have a very fruitful market in the near future.
Russia to Dominate the Market
Russia is the second largest producer of crude oil, globally with verified oil reserves of about 80,000 million barrels of oil. The country is greatly dependent on the revenues obtained from the oil & gas industry, and which accounted to around 40% of the federal revenues. As of 2017, the country is the second largest producer of dry gas, with a total production of 24.4 trillion cubic feet of gas. In addition to this, Russia is also the second largest exporter of crude oil, globally, with crude oil exports accounting to about 46% of total export revenues of the country. With new projects like the Nord Stream-2 pipeline, the country is looking forward to increase its oil exports, further, to the European Union. Also, there are increasing exports of natural gas from Russia to the Asia-Pacific region, especially China, due to the competitive pricing mechanism for natural gas. Russia is expected to continue as one of the major producers of oil & gas in the long run, but the recent agreement to cut the crude oil output might temporarily slow down the growth of the petroleum industry. Hence the oilfield chemicals are expected to witness a moderate growth in Russia, during the forecast period.
Key Developments in the Market
November 2017: Newpark Resources, Inc. announced the completion of the acquisition of Well Service Group (WSG) and Utility Access Solutions (UAS).
Major Players: Halliburton, AkzoNobel N.V., Baker Hughes Incorporated, Ecolab (Nalco Champion Technologies Inc.), Huntsman International LLC, and Solvay, amongst others.
Reasons to Purchase this Report
The impact of increased shale gas exploration and production on the market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The chemical type and application expected to dominate the market
The country that is expected to witness fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players.
3 months analyst support, along with the Market Estimate sheet in excel.
Customization of the Report
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1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Buyers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
4. Market Dynamics
4.1.1 Increased Shale Gas Exploration and Production
4.1.2 Rising Demand for Petroleum-based Fuel from Transportation Industry
4.2.1 Environmental Sustainability in Shale Gas Extraction
4.2.2 Other Restraints
4.3.1 New Horizons Opened Up Due to Offshore Drilling Operations
4.3.2 Other Opportunities
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Chemical Type
5.1.2 Corrosion & Scale Inhibitors
5.2 By Application
5.2.1 Drilling & Cementing
5.2.2 Work-over & Completion
5.2.3 Well Stimulation
5.2.5 Enhanced Oil Recovery
6. Regional Market Analysis (Market Size, Growth, and Forecast)
6.3 United Kingdom
6.4 Rest of Europe
7. Policies & Regulations
8. Competitive Landscape
8.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
8.2 Market Share Analysis**
8.3 Strategies Adopted by Leading Players
9. Company Profiles (Overview, Financials**, Products & Services, Recent Developments)
9.1 Akzo Nobel N.V.
9.2 Albemarle Corporation
9.4 Baker Hughes Incorporated
9.5 BASF SE
9.6 Chevron Phillips Chemical Company (Drilling Specialties Company)
9.8 Croda International plc
9.10 Ecolab (Nalco Champion Technologies Inc.)
9.11 Elementis plc
9.12 Exxon Mobil Corporation
9.13 Flotek Industries, Inc.
9.15 Huntsman International LLC
9.18 Newpark Resources Inc.
9.19 Schlumberger Limited
9.21 The Lubrizol Corporation
9.22 Zirax Limited
*List Not Exhaustive
**Subject to availability on public domain
- Akzo Nobel N.V.
- Albemarle Corporation
- Baker Hughes Incorporated
- BASF SE
- Chevron Phillips Chemical Company (Drilling Specialties Company)
- Croda International plc
- Ecolab (Nalco Champion Technologies Inc.)
- Elementis plc
- Exxon Mobil Corporation
- Flotek Industries Inc.
- Huntsman International LLC
- Newpark Resources Inc.
- Schlumberger Limited
- The Lubrizol Corporation
- Zirax Limited