“Rise in crude oil production worldwide drives the COFI market”
The global market size of COFI is estimated to reach USD 1.73 billion by 2021 from 1.32 billion in 2016, at a CAGR of 5.5%. Excessive supply of oil worldwide, has pushed down oil prices. Countries such as the U.S. have made considerable investments in unconventional drilling technologies, such as hydraulic fracturing (fracking). Hence, the U.S. cannot afford to cut down production so as to reduce dependency on shale oil import and subsequently reducing the price of the end product. Crude oil production through processes such as fracking requires addition of large quantities of flow improvers at various stages. Major The Organisation of the Petroleum Exporting Countries (OPEC) countries such as Kingdom of Saudi Arabia, Iran, and Iraq have increased their oil production, to protect their market share. Hence, demand for COFI is expected to increase.
“Paraffin inhibitors: The fastest-growing segment in the COFI market”
Paraffin inhibitor is the fastest-growing segment of the global COFI market. This high growth is attributed to its use during crude oil production and transportation. It helps in eliminating the effects caused due to deposition of wax during crude oil production and transportation. As the production of heavy and waxy crude oil from Venezuela and Russia and shale crude in the U.S. continues to rise, the demand for paraffin inhibitors is expected to increase.
“Direct supply to end users is a preferred channel of distribution”
Major oil & gas companies prefer procuring COFI products directly from the suppliers by issuing tenders. Key manufacturers such as Halliburton/Baker Hughes, Schlumberger, which also provide oilfield services such as drilling and production, consume these chemicals in bulk amounts, internally, for their operations. Remote locations are catered through distributors.
“Rising demand for COFI from the developing markets of the Middle East & Africa is one of the major drivers of the this market”
With the removal of sanctions on Iran, various International Oil Companies (IOCs) are willing to invest in the country which is offering around 50 oil & gas projects and 18 energy & power blocks worth USD 185 million by 2020. The political situations in countries such as Nigeria and Libya are expected to smoothen in the coming years that will result in ramping up crude oil production from these nations. This is expected to drive the demand for COFI products from these countries.
Extensive primary interviews were conducted for determining and verifying the market size for several segments and subsegments gathered through secondary research.
The breakdown of primary interviews is given below.
- By Company Type - Tier 1 - 20%, Tier 2 – 32%, and Others - 48%
- By Designation - C level - 18%, Director level - 27%, and Others - 55%
- By Region - North America - 35%, Europe - 30%, Asia-Pacific - 20%, the Middle East & Africa - 10%, and South America - 5%
The key companies profiled in this market research report are The Halliburton Company (U.S.), Baker Hughes (U.S.), Nalco Champion (U.S.), BASF SE (Germany), Schlumberger (U.S.), Clariant (Switzerland), Dorf Ketal (India), Lubrizol Specialty Products, Inc. (U.S.), and Infineum (U.K.).