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Industry Insights, Market Size, CAGR, High-Level Analysis: Canadian Oilfield Chemicals MarketThe Canadian oilfield chemicals market size was valued at USD 1.37 billion in 2018 and is expected to grow at a CAGR of 3.9% over the next seven years. Increasing complexities in operations of oil wells coupled with the decreasing productivity of the existing wells are projected to emerge as one of the key drivers for the industry growth. The industry is well-established in Canada owing to high penetration in drilling and production and coupled with high domestic demand. However, major restraining factors associated with the market growth in the country include operational, environmental, regulatory, and safety risks. In addition, high demand for such products on account of superior performance is expected to drive growth. The factors such as the change in regulations coupled with rising demand for sustainability are expected to pave opportunities for the bio-based oilfield chemicals. The Canadian oilfield chemicals market players are adapting the changes as per the ongoing trends spurring the industry growth. In addition, shift in trend towards unconventional hydrocarbon resources production is expected to benefit the industry growth.
Product Insights of Canadian Oilfield Chemicals MarketThe corrosion & scale inhibitors emerged as the fastest product segment and are expected to reach USD 415.0 Million in 2025. The segment is expected to grow over the forecast period owing to its rising application in onshore and offshore operations for drilling muds, oil storage tanks, refinery units, pipelines protection, and scale removal treatments. Growing oil demand and deteriorating oil production rates in existing wells is ensuing in the development of advanced technologies to extract hydrocarbons from the reservoirs. Growing concerns regarding extreme temperature operating conditions, well blowout, and wellbore stability are expected to drive the demand for oilfield chemicals for EOR application. The industry growth is primarily driven by the rising E&P activities in unconventional reserves for shale gas, tight gas and coal bed methane and large number of mature wells across Canada. Other cementing services including advance cementing are anticipated to witness above-average growth on account of rising oilfield services requirement, particularly in deep sour gas wells. Biocides are used to prevent aerobic bacterial degradation of fracturing fluids in surface mixing and storage tanks. Biocide is primarily added to the base fluid before the addition of polysaccharide viscosifier. This controls polysaccharide hydration rate and promotes rapid particle dispersion to evade formation of partially hydrated particles leading to a heightened demand.
Application Insights of Canadian Oilfield Chemicals MarketEnhanced Oil Recovery (EOR) application segment is estimated to grow at a CAGR of 4.8% from 2019 to 2025 owing to growing application in onshore activities in the country. Growth in the demand for surfactant flooding on account of high oil saturation is expected to drive the market growth over the next seven years. Production segment is expected to grow primarily owing to shale gas revolution and production of oil & gas from shale reserves in the country. In addition, the segment has emerged as the largest application owing to the rising production activities in Western Canada and is anticipated to grow further over the forecast period. The rise of cementing chemicals is primarily driven by the rising E&P activities in unconventional reserves for shale gas, tight gas and coal bed methane and large number of mature wells across Canada. Other cementing services including advance cementing, are anticipated to witness above average growth due to rising oilfield services requirement, particularly in deep sour gas wells. Growing E&P activities in unconventional oil & gas reserves especially in the shale basins is expected to remain a key factor driving segment growth. Hydrofracking operations are closely related to the crude oil prices as well. High demand for chemicals in hydraulic fracturing is expected to drive the segment growth over the forecast period.
Location InsightsGrowing demand for oilfield chemicals in deep water, harsh environment, and remote locations is expected to drive efficient oilfield chemicals demand over the forecast period. While older rigs are under the impact of stringent environmental regulations, renewed projects and new rigs are expected to drive offshore oil & gas activity in the region, leading to market growth. The rise in onshore rig activities in the Canadian regions including in Foothills Front, Northeastern Alberta, Southern British Columbia, Eastern Saskatchewan, Northern British Columbia, and Manitoba is expected to drive the market growth. In addition, rise in the oil exploration in onshore wells is also likely to fuel the demand for chemicals which is expected to benefit the market growth. The factors such as increasing maintenance costs related to Deepwater and Ultra-Deepwater locations, has resulted in the companies deploying oilfield chemicals for cost-efficient E&P activities. Increase in production from Hebron offshore project, crude oil production in offshore location of Eastern Canada is expected to realize a growth in the consumption of such chemicals. The offshore oilfield chemicals market is expected to realize a revenue of USD 155.7 million by 2025 on account of increase in the E&P activities in Labrador and Newfoundland. In addition, growth in the use of such products in the repair and maintenance of existing oil rigs is expected to drive the industry growth over the next seven years.
Market Share Insights of Canadian Oilfield Chemicals MarketCompanies such as BASF, Dow DuPont, Croda International, Lubrizol Corporation, Stephan Company, & AkzoNobel NV are involved in the production of raw materials, manufacturing of oilfield chemicals and their distribution to the end users, which enable these companies to reduce their costs of acquiring raw materials from small-scale industries. Companies such as NuGenTec have already commercialized several bio-based oilfield chemicals for the North American market. Major products offered by the company include biocides, inhibitors, defoamers, descalers, drilling mud additives, emulsion breakers, H2S scavengers, surfactants, and wetting agents.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Canadian Oilfield Chemicals Market Research ReportThis report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, this market research report has segmented the Canadian oilfield chemicals market on the basis product, application and location:
Product Outlook (Revenue, USD Million, 2019 - 2030)
- Corrosion & scale inhibitors
Application Outlook (Revenue, USD Million, 2019 - 2030)
- Drilling, Production
- Enhanced oil recovery
- Water treatment
- Hydraulic fracturing
- Workover and completion
Location Outlook (Revenue, USD Million, 2019 - 2030)
Table of Contents Chapter 1 Methodology and Scope 1.1 Research Methodology 1.2 Research Scope and Assumptions 1.3 List of Data SourcesChapter 2 Executive SummaryChapter 3 Market Variables, Trends, and Scope 3.1 Market Segmentation 3.2 Market Size and Growth Prospects, 2014 - 2025 3.3 Canadian Oil & Gas Industry Overview 3.4 Recent Developments & Trend Analysis 3.5 Value Chain Analysis 3.6 Regulatory Scenario 3.7 Raw | read more...