OIL AND GAS CHEMICALS MARKET ANALYSIS

Regional Analysis

North-America is witnessed to be the largest market in oil and gas chemicals and was valued at US$ 30.59 billion in 2016 with a consumption of 22,657 kilotons in 2016. Shale gas revolution and increased E&P in offshore basins has further contributed to the growth of oil and gas chemicals in this region. Also, superior technology has allowed North American shale producers to achieve breakeven at US$ 50 per barrel scenario. The availability of low cost feedstock has allowed petrochemical industry to thrive in the country. The major shale basins in the US are Permian, Niobrara, Eagle Ford, Bakken, Marcellus, and Anadarko.

However, Asia-Pacific is anticipated to be at a fastest growing region with a CARG of 7.36% over the forecast period. According to Organization of the Petroleum Exporting Countries (OPEC), the global oil consumption increased from 104 mboe/d to 268 mboe/d, an increase of 157%. This rapid increase has been attributed to increased consumption in the emerging economies of India, China, and ASEAN. Furthermore, OPEC forecasts the oil consumption to increase by 49% from 268 mboe/d to 399 mboe/d by 2040. Increase in consumption rate, industrialization, rising exploration, and production activities in China, India, Australia, etc. has given speed to the growth of oil and gas chemicals market in this region.