Specialty Oilfield Chemicals Market Size, Share, and Trends 2024 to 2033

Specialty Oilfield Chemicals Market Size and Growth

The global specialty oilfield chemicals market size was USD 10.12 billion in 2023, calculated at USD 10.57 billion in 2024 and is expected to reach around USD 15.58 billion by 2033, expanding at a CAGR of 4.41% from 2024 to 2033. The growth of the specialty oilfield chemicals market is attributed to the increasing crude oil production, coupled with growing demand from the enhanced oil recovery application.

Specialty Oilfield Chemicals Market Key Takeaways

• The North America specialty oilfield chemicals market size reached USD 4.25 billion in 2023 and is expected to attain around USD 6.62 billion by 2033, poised to grow at a CAGR of 4.53% between 2024 and 2033.
• North America led the market with the largest revenue share of 42% in 2023.
• Asia Pacific is expected to host the fastest-growing market during the forecast period.
• By application, the production segment has contributed more than 31% of revenue share in 2023.
• By application, the oil recovery segment is anticipated to grow at a rapid rate over the forecast period.
• By product, the inhibitors segment has held a major revenue share of 34% in 2023.
• By product, the surfactant segment is expected to grow rapidly in the market over the projected period.

U.S. Specialty Oilfield Chemicals Market Size and Growth 2024 to 2033

The U.S. specialty oilfield chemicals market size was exhibited at USD 2.98 billion in 2023 and is projected to be worth around USD 4.67 billion by 2033, poised to grow at a CAGR of 4.59% from 2024 to 2033.

North America dominated the specialty oilfield chemicals market in 2023. The increase in oil and gas operations, driven by advancements in hydraulic fracturing and drilling processes, is boosting regional growth. Technological innovations and a rise in drilling activities are expected to further enhance this growth during the forecast period. The expanding exploration and production of shale gas in the U.S. are anticipated to increase the demand for oil-based chemicals. As the U.S. produces more crude oil to meet the rising demand for petroleum, LPG, and diesel, the region's well-established and mature industry benefits from its extensive use in workover, completion, and production activities.

• In February 2023, Imperative Chemical Partners, Inc. and RSI Chemicals, (RSI) are joining to form one of the largest oil & gas production chemicals businesses focused on the U.S. land market. With a complimentary regional presence and natural cultural alignment, the combined company is well-positioned for sustained growth and greater resilience in a dynamic market.
• In April 2023, Dorf Ketal, one of the world's leading specialty chemical products and services companies, announced it had completed the acquisition of Clariant's North American Land Oil business, which provides chemical technologies and services to the oil and gas industry.
• According to the Council on Foreign Relations, the United States meets over 90% of its natural gas demand and 75% of its crude oil demand from domestic sources. This accounts for 11 million barrels of crude oil and 1 million cubic feet of natural gas per day in 2021.

Asia Pacific is expected to host the fastest-growing specialty oilfield chemicals market during the forecast period. The region's industry expansion is driven by growing urbanization, a rising population, and increased shale gas demand across various sectors. Additionally, the technological advancements in environmental-friendly products and solutions will further expand the future growth of the specialty oilfield chemicals market. The regional market's growth is primarily due to heightened exploration and development activities in Southeast Asian countries, India, Mainland China, and the South China Sea. This growth is further supported by the rising global demand for petroleum and crude oil, along with significant economic investments in the energy sector.

Market Overview

Specialty oilfield chemicals refer to a diverse group of substances specifically designed for use in various oil and gas exploration and production processes. These chemicals serve multiple purposes, including mitigating environmental impacts, improving production efficiency, increasing oil recovery, and ensuring the integrity and reliability of oilfield equipment and infrastructure.

The specialty oilfield chemicals market can be categorized based on their functions and applications. Common types include biocides, friction reducers, surfactants, corrosion inhibitors, scale inhibitors, demulsifiers, and drilling fluids. The wider use of fracking has significantly propelled oil and gas production, reshaping the energy landscape and unlocking vast reserves previously deemed economically unviable.

Specialty Oilfield Chemicals Market Growth Factors

• The growing need for better oil recovery techniques is expected to fuel the growth of the specialty oilfield chemicals market in upcoming years.
• Rising energy demand globally can fuel the specialty oilfield chemicals market growth shortly.
• Increasing focus on cost reduction and production efficiency can drive the specialty oilfield chemicals market growth further.
• The widespread use of fracking has sustainably increased oil and gas production, which will positively impact the specialty oilfield chemicals market.

Specialty Oilfield Chemicals Market Scope

Specialty Oilfield Chemicals Market Dynamics

Driver

Rising use of eco-friendly oilfield chemicals

Rapid growth and investment by global and regional oilfield service companies will increase oilfield service activities and the demand for the specialty oilfield chemicals market. In addition to this, the discovery of new oil and gas resources in various locations and the increase in shale gas and enhanced oil recovery activities are expected to boost growth prospects. Chemicals with reduced flammability, lower bioaccumulation, more excellent biodegradability, and sustainability in production are examples of green solutions in the oil fields.

• In July 2023, Lygos, Inc. announced the launch of Soltellus, a line of multi-functional, water-soluble polymers for home care, agronomy, and water treatment. Soltellus provides proven performance in target applications and is a nontoxic and biodegradable alternative to persistent polyacrylate and polycarboxylate polymers.

Restraints

Regulatory barriers

The specialty oilfield chemicals market can significantly impact the environment, and various regulations are in place to restrict their use, which can limit market growth and profitability. Additionally, specialty oilfield chemicals are expensive, and their high cost can hinder adoption in some markets, further impacting growth and profitability. Manufacturers of these chemicals may face challenges in complying with stringent safety regulations and environmental laws. New or amended regulations may restrict the types of chemicals allowed in oilfield operations and increase compliance costs.

Opportunity

Petrochemicals to increase global oil demand

Plastics such as polyethylene, polypropylene, and polystyrene account for a significant portion of global petrochemical production. Over the past few decades, these plastics have become more popular in key end-use industries like food and commercial packaging, a trend that is expected to continue, particularly in developing regions like Asia Pacific and Latin America.

During the forecast period, petrochemicals are expected to dominate oil consumption due to increasing demand. The rising purchasing power and standard of living in emerging economies will further boost the demand for petrochemicals, contributing to the growth of the specialty oilfield chemicals market. The low weight and long shelf life of plastics help reduce food waste and fuel consumption, providing immediate economic benefits and aiding resource optimization, which is crucial for emerging economies. Oil-producing nations are building petrochemical complexes to take advantage of inexpensive raw materials.

• In March 2022, Clariant signed an agreement with the Lihuayi Group Co. Ltd. for its upcoming petrochemical production units.

Application Insights

The production segment dominated the specialty oilfield chemicals market in 2023. The crucial role of specialty oilfield chemicals lies in enhancing the efficiency and lifespan of oilfield operations, fixing smooth oil transportation, and preserving wellbores. These chemicals are precisely formulated to meet the specific requirements of each oilfield, with compositions that may vary over time and according to operational conditions. Their applications range from facilitating oil transportation to preventing corrosion in pipelines by highlighting their significant role in the production process.

• In February 2024, Baker Hughes, an energy technology company, and Dussur, owned by the Saudi Arabian Public Investment Fund (PIF), Saudi Aramco, and SABIC, inaugurated the Saudi Petrolite Chemicals facility, a chemicals manufacturing facility focused on providing oilfield, power generation and industrial chemicals in the Kingdom of Saudi Arabia.

The oil recovery segment is expected to grow in the specialty oilfield chemicals market during the forecast period. These chemicals are specially formulated to tackle specific challenges in oil recovery, including reservoir heterogeneity, fluid displacement, and formation damage. Specialty oilfield chemicals play a crucial role in enhancing oil recovery processes, optimizing production efficiency, and increasing yields in the oil and gas industry.

Product Insights

The inhibitors segment was the dominant force in the specialty oilfield chemicals market in 2023. This was because of their crucial role in slowing down specific chemical reactions. For instance, corrosion inhibitors protect metal surfaces such as pipelines and storage tanks from the damaging effects of corrosive substances found in oilfield fluids. These inhibitors are able to tackle various challenges, including corrosion, scale formation, and maintaining fluid stability. By creating a protective layer on these surfaces, they effectively reduce corrosion and ensure the durability and efficiency of the equipment.

• In May 2024, BASF plans to expand the global production capacity of its Basoflux range of paraffin inhibitors at its site in Tarragona, Spain. This investment will enable BASF’s Oilfield Chemicals business to meet the current and future demand for novel paraffin inhibitors for the Oil & Gas industry. Additional assets will create efficiency and flexibility in producing newly developed solutions.

The surfactant segment is expected to grow rapidly in the specialty oilfield chemicals market over the projected period. The addition of surfactants can reduce the interfacial tension between oil and water, promote emulsification, decrease the solubility of oil in water, increase the rock absorption of crude oil, and reduce crude oil viscosity. They are crucial in optimizing treatment fluid recovery, preventing downhole emulsions, and improving both initial production (IP) rates and long-term production after fracturing.

Specialty Oilfield Chemicals Market Companies

• Nouryon
• BASF SE
• SMC Global
• Baker Hughes
• Halliburton
• The Lubrizol Corporation
• Aquapharm Chemical Pvt. Ltd.
• Clariant
• Solvay S.A.
• Thermax Chemical Division

Recent Developments

• In February 2023, SLB acquired Gyrodata Incorporated, a global company specializing in gyroscopic wellbore positioning and survey technology.
• In March 2022, Halliburton Co. announced the opening of the Halliburton Chemical Reaction Plant, the first of its kind in Saudi Arabia to manufacture a broad range of chemicals for the entire oil and gas value chain, as well as many other industries. The facility expands Halliburton’s manufacturing footprint in the Eastern Hemisphere and strengthens and accelerates its ability to serve the chemical needs of Middle East customers.
• In September 2022, Clariant launched the D3 PROGRAM to introduce more sustainable solutions to the oil and gas industry. Clariant launched several products, such as lubricity improvers, extreme pressure/anti-wear additives, corrosion inhibitors, neutralizing agents & guide formulations using online mode.

Segments Covered in the Report

By Product

• Inhibitors
• Friction Reducers
• Surfactants
• Biocides
• Demulsifiers
• Other Products

By Application

• Production
• Drilling Fluids
• Oil Recovery
• Cementing
• Other Applications

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa