Oilfield stimulation chemicals are used in the oil and gas industry for well completions and recover additional hydrocarbons from reservoirs. These chemicals enable hydraulic fracturing operations and enhance oil and gas flow from reservoirs.
The global oilfield stimulation chemicals market is estimated to be valued at US$ 4.27 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising exploration and production of unconventional oil & gas resources such as tight oil, shale gas, and coal seam gas is driving the demand for oilfield stimulation chemicals. Hydraulic fracturing is necessary for economic production of oil and gas from these unconventional reservoirs. For instance, shale gas exploration and production in the U.S. has increased significantly over the past decade due to advancements in horizontal drilling and hydraulic fracturing technologies. This growing demand from unconventional oil & gas exploration projects is expected to propel the growth of the global oilfield stimulation chemicals market during the forecast period.
Strength: Oilfield stimulation chemicals improve extraction of oil and gas from reservoirs which enhances production efficiency. These chemicals help in boosting production rates and extend the life of mature oilfields through hydraulic fracturing and acidizing techniques.
Weakness: Stringent environmental regulations on the use of certain toxic chemicals limit the growth potential of some products. Improper disposal of wastewater containing chemicals also poses hazards.
Opportunity: Rising energy demand worldwide along with recent recovery in crude oil prices are driving higher spending on exploration and production activities. This expands the market scope for stimulation chemicals.
Threats: Volatility in crude oil prices can negatively impact capital budgets for well stimulation projects. Growing adoption of renewable energy reduces long-term dependence on fossil fuels.
The global oilfield stimulation chemicals market is expected to witness high growth over the forecast period supported by rising energy demand worldwide. The global oilfield stimulation chemicals market is estimated to be valued at US$ 4.27 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030.
The North American region currently dominates the market owing to large shale oil and gas production in the U.S. and Canada. Increasing exploration and production activities especially in the U.S. are further enhancing regional demand.
Key players operating in the oilfield stimulation chemicals market are Baker Hughes, Schlumberger, Halliburton, BASF SE, Huntsman Corporation, Croda International Plc, AkzoNobel, The Dow Chemical Company, DuPont de Nemours, Inc., and Solvay. These major companies are focusing on developing innovative and eco-friendly products to gain market share. Rising exploration and production in the energy-rich regions of Latin America and Middle East are also opening new growth avenues for stimulation chemical manufacturers.