Breaking News: On July, 2017, the Department of Justice (DOJ) approved the merger of Baker Hughes Inc. and GE Oil & Gas. This merger is expected to lead to the formation of the second largest oilfield services company globally, second only to Schlumberger.
After the merger is completed, Baker Hughes will be incorporated into GE, which will have a 62.5-percent share in the company.
The North American oilfield chemicals market is expected to value at USD 15,474.00 million in 2017, and is likely to reach USD 19,645.95 million by 2022, projecting a CAGR of 4.89%, during the forecast period 2017-2022.
Oilfield chemicals are an integral part of the oil & gas industry, they find extensive use in various stages of oil exploration. The usual problems that oilfields face include water gushing into the oil well during drilling and exploration and gases like carbon dioxide and hydrogen sulfide causing equipment corrosion. Moreover, the metal scales formed during drilling operations also interfere with the machine operations. Such hindrances are avoided by using oilfield chemicals, especially corrosion and scale inhibitor chemicals.
The market is driven by several factors, such as growing demand for oilfield chemicals due to increasing crude oil production, and shifting focus towards the development of eco-friendly chemicals. On the flipside, factors such as low crude oil prices, may hinder the growth of the market. This factor may act as a roadblock to the growth of the market.
The market is segmented by chemical type and by application. By chemical type, in 2016, corrosion and scale inhibitors are expected to dominate the market, however, polymers are expected to witness the highest CAGR of 5.38%, during the forecast period. The increasing well stimulation and drilling activities are estimated to boost the oilfield chemicals market. By application, well stimulation application is expected to dominate the market in 2016.
The market has also been geographically segmented based on consumption. The regional analysis includes United States, Canada, Mexico and Rest of North America. United States is expected to remain the largest region and is also expected to experience the highest growth over the forecast period owing to increasing consumption of chemicals and exploitation of shale oil & gas reserves. The following sample chart shows the country segmentation share of North America oilfield chemicals market for 2016.
Opportunities and Major Players
The opening up of deep water drilling operations, and recovering oil & gas industry will offer numerous will offer numerous opportunities for the growth of the North America oilfield chemicals market. Some of the major companies and vendors in the market include Schlumberger Limited, Halliburton, Baker Hughes Incorporated, Solvay, and Nalco Champion LLC (Ecolab), among others.
Key Deliverables in the Study