A report by Transparency Market Research, titled, “Oilfield Stimulation Chemicals Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024,” projects this market to witness a slow yet steady growth. This is mainly due to a substantial decline witnessed by the oil and gas industry in recent times, after the latest recession.
Oilfield stimulation chemicals are majorly used for augmenting and supporting stimulation processes, in order to improve or restore the productivity of an oil well. Even if the oil and gas industry is in its not-so-good days as of current times, a substantially high demand for the oilfield stimulation chemicals exists for carrying out relevant processes at ongoing exploration centers. Such demand is enough to keep the global oilfield stimulation market substantially stable for the next few years, after which it is expected to growth at a decent pace. Companies prefer using oilfield stimulation chemicals compared to other alternatives, owing to several properties present in the former category. Key properties that make companies put faith in these compounds involve their ability to be used as a dispersal agent, as a foam control agent, and as a compound to resist corrosion.
In terms of market restraints, as described earlier, the downward spiral witnessed by the oil and petroleum market is posing as a notable obstacle to the overall growth. High costs of manufacturing oilfield stimulation chemicals makes it difficult for oil companies to invest large amounts for buying the compounds, consequently hindering the market. Lack of availability of raw materials in remote and underdeveloped regions required to produce the chemicals also is a key obstacle for the global oilfield stimulation chemicals market’s growth. Lastly, a shortage of expertise needed to produce the chemicals in emerging economies also does not bode well for the market. Nevertheless, many companies are anticipated to introduce several cost-effective stimulant chemical products consequently reducing some of the restraints affecting the global oilfield stimulation chemicals market.
This market depicts the existence of a highly fragmented vendor landscape that is characterized by intense competition owing to the presence of innumerable players. The competitive landscape is gradually expanding and is expected to proliferate even to the remotest regions during the next few years.
Participating in mergers & acquisitions, expansion of product portfolios, and achieving product differentiation are key schemes implemented by most businesses in the global oilfield stimulation chemicals market. Bringing about extensive innovations in stimulation chemical production techniques, and striving towards making quality chemicals also are other strategies implemented by most businesses working in the global oilfield stimulation chemicals market. The Dow Chemical Company, Chevron Philips, Clariant, DuPont, and BASF SE, are key players operating in the global oilfield stimulation chemicals market.
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Geography-wise, the market is mainly spread across North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Of these, rapid growth in exploration of oil and gas reserves carried out by key companies in North America has made this region hold a dominant position in the oilfield stimulation chemicals market. Concentration of numerous oil and gas reserves in the Middle East and Africa has also caused the market to gain extensive growth in this region.