Oilfield Process Chemicals

Report Highlights

• The projected annual growth of the oilfield chemicals market is 6.6% per year between 2002 and 2007.
• The market should reach a value of $2.3 billion annually by 2007.
• Enhanced oil recovery (EOR) applications will increase by an average annual growth rate (AAGR) of 22% between 2002 and 2007.
• The peak demand for oil will occur around 2015, delaying the decline in production until 2016.

INTRODUCTION

Oilfield process chemicals are used to support the exploration and processing of oil and natural gas in the field. Presently, the U.S. and other countries use more oil than they are capable of producing. This has generated an increase in exploration and production both domestically and internationally. Additional exploration, development of new oil and natural gas wells, and increased production in existing oil and gas wells have resulted in an increase in the demand for and sale of oilfield process chemicals.

This BCC report evaluates the future of the industry on a worldwide scale. This volatile has experienced a recent increase in sales resulting from new oil discoveries, political drivers and advances in technology. However, the $1.6 billion dollar industry has suffered a large decline in the last two decades. Once considered a specialty chemicals industry, many of the products are approaching commodity chemical status and pricing.

This analysis presents a five-year forecast for the production and sale of oilfield process chemicals. It focuses on the chemicals predominantly used for the purpose of recovering oil and natural gas. Included in this report are sales data for specific types of chemicals. It discusses which oilfield processes use what type of chemical and their specific chemical functions. It also covers the manufacturers of these products and their users. The report identifies areas of opportunity in oilfield process chemical production, now and in the near future. It also pinpoints oilfield process chemical industry areas that are technologically deficient and areas where excess supply has created market saturation. As such, it will be invaluable to CEOs, presidents, developers, strategic planners and marketers involved in chemical production and consumption.

SCOPE OF STUDY

This study includes:

• The chemicals used in the oilfield processes a) by process application, b) by type, and c) by chemical function
• Assessment of the oilfield process chemicals current market, along with past market performance
• Projected worldwide sales for the industry forecasted by application, type and function
• Consideration of the potential effects of political and trade policies
• Technology assessment - product development, R&D, new technology and patents
• Worldwide industry structure with an appendix that profiles industry players.

METHODOLOGY

BCC evaluates each market by application, type and function. To make projections for the future of the oilfield process chemicals market, a correlation between production of oil and gas was calculated. This was accomplished by evaluating the oil exploration and production companies' five-year forecasts, capital and engineering spending forecasts and recent oil reserve discoveries. Also taken into account were historical relationships between oilfield process chemicals and oil and gas production. Energy Information Administration demand projections were also taken into account. Political situations were considered. Information directly related to the oilfield process chemicals industry was also analyzed.

Company annual reports were assessed and sales values were confirmed with reliable sources. Company market shares were also confirmed and cross-referenced. The chemicals focused on for this report are those qualifying for the functions listed.

INFORMATION SOURCES

Hundreds of information sources contributed to this study, including interviews with industry experts, research databases, technical abstracts, commerce publications, government sources, financial and trade information, library resources and the Internet.

ANALYST CREDENTIALS

Marcanne Green is a degreed Chemical Engineer with a BS from the University of Washington in Seattle, WA and over 12 years experience. Ms. Green has worked in the power, nuclear, water treatment, electroplating, surface finishing, aerospace, food and environmental engineering industries. She has done work for Boeing, the U.S. Department of Energy, Hill Brothers Chemical Co., Calgon Corp. and Ondeo Nalco.