Saudi Arabia Oil Field Chemicals Market Size is USD 928.27 million in 2022 and is anticipated to increase at a CAGR of 4.81% in the forecast period. The usage of oil field chemicals is therefore becoming more and more significant as crude oil resources decrease. The oil industry demands more sophisticated methods for the exploitation of natural resources. The Saudi Arabia Oil Field Chemicals Market is driven by increased oil and gas exploration and production; a focus on difficult offshore and frontier areas; increasing well depths; and the need to maximize existing well output in the country. According to the International Trade Administration, Saudi Arabia is one of the world’s largest net exporters of petroleum and the center of over 17% of the world’s proven oil reserves. Further, oilfield chemicals are used in various sectors, such as in the field of exploration and production, including the optimization of cementing and drilling, as well as aiding in the development of new methods of developing fuel sources, fracturing, etc.
Drilling fluids play a key role in drilling wells faster, deeper, longer, and more challenging situations. According to the Organization of the Petroleum Exporting Countries, the OPEC nations generate the most oil globally, with Saudi Arabia accounting for one-third of the group’s total production. The oilfield chemicals used as drilling fluids can include fibers, suspension, clay control, and biocides, as well as polymers, suspension and rheology chemicals, surface modifiers, fillers, and particles. In addition, drillers use specialty cement and membrane-sealing solutions to prevent losses.
Oilfield chemicals are substances used in the exploration of oil and gas. They are used in drilling operations and production facilities to increase the extraction process efficiency and efficacy. These substances aid in the smooth operation of oil fields and reduce the costs incurred by frequent stops and delays while drilling. According to the U.S. Energy Information Administration, OPEC accounted for roughly 11% of all petroleum imports into the United States in 2021 and 13% of all imports of crude oil. Saudi Arabia, the largest OPEC oil producer to the United States, supplied 6% of the country’s imports of crude oil and 5% of its total petroleum imports. Moreover, oilfield chemicals may remain as residues in crude oil since they are utilized in many stages, including drilling, cementing, and well-stimulation. During the production phase, when it is vulnerable to the deposition of scales, wax hydrates, and alkanes, crude oil’s outflow through the well must be monitored.
Chemicals used in oil fields aid in the recovery of hydrocarbons, which has significant economic advantages. Also, the industry for oil field chemicals is expanding in some areas, including drilling fluids, workover and completion, and production. Furthermore, oil field chemicals are used in the wastewater treatment process. Wastewater from oil fields is frequently contaminated with a variety of chemical and natural contaminants. These injected chemicals have the potential to corrode pipelines, harm the environment, and clog pipes. Oilfield wastewater treatment frequently uses a gas float and chemical flocculation techniques to treat oily wastewater.
Increasing Demand for Personal Care Products is Driving the Market
Due to the increasing participation of women in the workforce, sales of colored cosmetics such as pigments and dyes in Saudi Arabia are steadily rising. Also, as the COVID-19 pandemic spreads throughout the world, top manufacturers in Saudi Arabia are noticing a significant rise in demand for hygiene products, including hand sanitizers, liquid soaps, disinfectant sprays, and contaminant wipes. According to the government of Saudi Arabia, the cosmetics market was estimated at USD 16 billion in 2021, and the number of imported cosmetics in the past year exceeded USD 0.6 billion in the country. The demand for performance chemicals is predicted to increase across all end-use sectors in Saudi Arabia, including oil and gas, paper, construction, water management, food, mining, pharmaceutical, agricultural, and personal care for use in specialized applications. Also, it is anticipated that the availability of a variety of formulation chemicals, such as electronic chemicals, institutional and industrial cleansers, surfactants, and flavors and fragrances, will boost the market’s expansion.
Rising Demand from Various End-User Industries
One of the key factors boosting the market for specialty oilfield chemicals is the increasing amount of crude oil production worldwide. The high level of crude oil output and rising demand due to applications for enhanced oil recovery speed up market expansion. According to the Saudi energy minister, Saudi Arabia will increase its oil production by 13 million barrels per day in 2027. The market is further influenced by the rise in the use of chemicals in drilling fluid activities, production chemicals, workover and completion, industrial and institutional cleaning chemicals, specialized advanced polymers, pesticides, and building chemicals, among other uses. Moreover, the market for specialty oilfield chemicals is positively impacted by increased crude oil output, with an increase in deep and ultra-deep oil and gas drilling, and growing industrialization.
• Recently, in 2022, Baker Hughes announced an agreement with Dussur to form a Joint venture company that will focus on providing oilfields and industrial chemicals in Saudi Arabia.
• Mergers and Acquisitions
• In 2017, U.S.-based Nabors Drilling and Saudi Aramco collaborated to increase their product line and expand their customer base in Saudi Arabia.
• In 2018, Saudi Aramco announced a joint venture with U.S.-based NOV Inc. to produce drilling rigs as well as associated tools in Saudi Arabia.
Saudi Arabia Oil Field Chemicals Market is segmented based on application, oil field type, type, and region. Based on the application, the market is fabricated into Drilling, Completion Methods, Cementing, Stimulation, Enhanced Oil Recovery, and Others. Based on the oil field type, the market is divided into Onshore and Offshore. Based on type, the market is segmented into Special Oil Field Chemicals and Commodity Oil Field Chemicals.
Baker Hughes Saudi Arabia Co., Halliburton Co Saudi Arabia, Schlumberger Middle East Sa, Saudi Arabia BASF, Dow Saudi Arabia, Aubin Ltd., Arkema Chemicals Saudi Arabia Company, The Solvay Group, Clariant Ali Al Abdullah Al Tamimi Company Ltd, and Redachem United for Trading Ltd. are some of the key players of Saudi Arabia Oil Field Chemicals Market.
In this report, Saudi Arabia Oil Field Chemicals market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:
• Saudi Arabia Oil Field Chemicals Market, By Application:
–Enhanced Oil Recovery
• Saudi Arabia Oil Field Chemicals Market, By Oil Field Type:
• Saudi Arabia Oil Field Chemicals Market, By Type:
–Special Oil Field Chemicals
–Commodity Oil Field Chemicals
Company Profiles: Detailed analysis of the major companies in Saudi Arabia Oil Field Chemicals market.
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• Detailed analysis and profiling of additional market players (up to five).