The production chemicals market is estimated to be valued at USD 7.44 Bn in 2024, growing at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031. The production chemicals market involves various chemicals that aid in enhancing oil and gas recovery and improving production from oil and gas wells. These chemicals help in maximizing the extraction of hydrocarbons from reservoirs by maintaining the integrity of resources. Some key production chemicals utilized include corrosion inhibitors, scale inhibitors, asparagines, biocides, and surfactants. Corrosion inhibitors prevent pipelines and equipment from corroding due to water and gas production. Scale inhibitors prevent scale deposits inside equipment. Asparagines and biocides control the growth of microorganisms that can damage pipelines. Surfactants are also used to increase oil productivity from the reservoirs. With rising energy demands worldwide, production chemicals play a vital role in improving recovery from mature oilfields and unlocking production from unconventional resources. This drives significant growth opportunities for the production chemicals market.
Market Dynamics:
The production chemicals market is driven by factors such as increasing oil and gas production activities, mature oilfield recovery, and demand for enhanced oil recovery techniques. Mature oilfields require production chemicals to boost the declining well productivity. According to the IEA, around 60% of the world's future oil production is expected to come from enhanced oil recovery techniques that utilize production chemicals. However, stringent environmental regulations pose a challenge as some chemicals are toxic in nature. Also, volatility in crude oil prices impacts investments towards upstream oilfield projects. To overcome such restraints, key players are focusing on developing bio-based and eco-friendly production chemicals. Moreover, increasing efforts towards unlocking unconventional resources, such as shale oil and tight oil formations, present opportunities for further market growth.
Key Features of the Study:
Market Segmentation
Table of Contents
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