Oilfield Stimulation Chemicals Market Is Growing Rapidly with BASF SE Expanding Its Production Capacity with the Installation of Enhanced Oil Recovery Polymer Injection Plants in Argentina

 

Oilfield Chemicals have been on the rise over the past few years. This steady increase in popularity is largely due to the fact that the average cost of starting an oilfield business is much less than the cost of starting an operations-based business such as a hospital or dentist's office. The average cost of starting an oilfield business is less than half of what it would cost to have the same type of equipment and supplies installed in your own business. There are also many government and private grants available to help new small businesses get started.

Growing deep drilling operations is expected to drive growth of the global oilfield stimulation chemicals market. Many oil and gas corporations worldwide are focused on oil drilling activities with rising investment in the oil & gas sector. For instance, in December 2020, ExxonMobil Corporation and PETRONAS discovered hydrocarbons at Sloanea-1 exploration well on Block 52 offshore Suriname. Furthermore, in October 2020, ExxonMobil made its final investment of US$ 9 billion in Payara field offshore development in Guyana. As a result of rising deep drilling operations across the globe, the demand for stimulation chemicals for hydraulic fracturing, acid fracking, matrix acidization, and other processes. Hence, these factors are expected to drive growth of the global oilfield stimulation chemicals market. Furthermore, increasing crude oil production is expected to propel the global oilfield stimulation chemicals market growth in the near future.

Low prices of crude oil and stringent government regulations combined with high environmental risk are expected to hamper the global oilfield stimulation chemicals market growth in the near future. However, the use of biopolymer in the stimulation and discovery of new oilfields in Latin America and Africa can provide major business opportunities in the near future. Among regions, North America is expected to witness significant growth in the global oilfield stimulation chemicals market. This is owing to the presence of a mature sector in the region. Furthermore, Asia Pacific is expected to register a robust growth rate, owing to increasing number of exploration activities in the South China Sea and Southeast Asian countries.

Key players involved in the global oilfield stimulation chemicals market are The Dow Chemical Company, BASF SE, Clariant, DuPont, Chevron Phillips, Lubrizol Corporation, Schlumberger, Halliburton, Stepan Company, and Baker Hughes.

For instance, in September 2020, BASF SE expanded its production capacity with the installation of enhanced oil recovery polymer injection plants in Argentina.

Increasing Demand for Termite Control Products to Augment the Termite Control Market Growth

 

Termites do not belong to the class of mites and are commonly called ants. Termites live all over the world and are found in wood, soil, decayed leaves, stems, and plants. A termite colony is often composed of a single queen and thousands of soldier ants. It is the job of the worker ants to forage on the source of food and defend the colony from external predators. Various mechanical, physical, biological, and chemical methods are used to control termite infestation. A liquid termite treatment using Termidor is the most effective method for treatment, it simply act as a barrier between the structure and termites.

Market Dynamics:

Favorable government initiatives to increase awareness among people about termite control products are expected to augment the growth of the termite control market. For instance, the United States Environmental Protection Agency (EPA) encourages termite prevention through various awareness programs and has implemented stringent standards for the registration and use of termite control products. Moreover, in February 2021, Professional Pest Management Alliance (PPMA) encouraged pest management professionals (PMPs) to take part in the annual observance of Termite Awareness Week 2021.

Furthermore, increasing demand for termite control products from the tourism and hospitality sectors and increasing popularity of innovative products is expected to propel the growth of the termite control market.

However, stringent government regulations regarding the use of certain pesticides are expected to restrain the growth of the termite control market. For instance, in Japan, restricted the use of chlordane and heptachlor in termite control due to its harmful effects on environment and human health. Furthermore, according to Indian Pest Control Association, the Insecticides Act aids in regulating the import, registration process, manufacturing, and use of insecticides to prevent risk to humans and animals. All the insecticides undergo the registration process with Central Insecticides Board & Registration Committee (CIB & RC) before its use.

Moreover, the high cost of research and development and growing resistance of termites to control products is expected to hamper the termite control market growth.

Competitive Analysis:

Major players operating in the termite control market are Ensystex, Adama Agricultural Solutions Ltd., Rentokil Initial PLC., Nippon Soda Co. Ltd., Nufarm Limited, United Phosphorus Ltd., FMC Corporation, Sumitomo Chemical Co., Ltd., DOW Chemical Company, Bayer AG, and BASF SE.

Major players in the market are adopting various strategies, such as product launch, business expansion, etc., to expand their product portfolio. For instance, in May 2020, BASF launched the Trelona Advance Termite Baiting System (ATBS), which is available for use by licensed pest controllers throughout Australia.

The Global Drilling Chemicals Market Continues To Grow Owing To the Demands from Oil and Gas Exploration Fields to Discover Untapped Reserves despite the Environmental Effects of the Materials

 

Drilling chemicals are an integral part of biotechnological engineering and are used in drilling boreholes for different purposes. They have a wide-ranging application in the drilling of liquid petroleum and natural gas and even fresh groundwater. These chemicals most often come in the form of solid drilling mud popularly known as drilling mud. It is a thick liquid that easily sticks to the surface when sprayed with a fine mist, making it easy to mix and apply as required during the drilling operation. These chemicals usually contain gypsum as their main ingredient, which is commonly known for its ability to stick to a variety of surfaces including concrete, asphalt, and even stone. They also consist of various polymers such as PVC, silicone, polyurethane, and others that possess attributes that make them ideal for use in the extraction of liquids that tend to be slippery such as seawater and groundwater. The majority of these chemicals are injected into the borehole after the completion of a drilling operation so that they can serve as an adhesive and hold up the formation of the borehole while it is freely flowing beneath the ground. This method of injecting the fluids enables them to stay attached to the drilled hole for a prolonged period of time so that the formation of the borehole does not slip away.

Market Dynamics                                  

The main driving factor influencing the growth of the drilling chemicals market are the increased demand for the chemicals in energy and mineral exploration and the rapid expansion of urbanization. Governmental bodies all across the globe are also rapidly investing in unconventional oil and gas drilling projects to boost economic productions. For instance, in January 2018 the U.S. Department of Energy invested approximately US$ 30 million for research and development activities related to the unconventional development of shale.

However, growing concerns related to the harmful environmental effects of the disposed waste drilling materials have forced governmental bodies all over the world to issue stringent orders related to the disposal and treatment of waste drilling chemicals. This is the main restraining factor hindering the market growth. The U.S. Environmental Protection Agency (EPA) has put a limit on the usage of oil-based drilling chemicals in offshore activities owing to the presence of a critical level of atomic substitute that can pose to be a major threat to the marine ecosystem.

This market is distributed in five regions that include North America, Europe, Asia-Pacific, Middle East, and Africa, and Latin America. Among these, North America is expected to hold a bigger share of the drilling chemicals market owing to factors such as the rapid expansion of shale and increase offshore drilling activities in the Gulf of Mexico. For instance, U.S. President Joe Biden has issued 31 new permits related to drilling operations in the coastal waters and federal lands adjacent to the Gulf of Mexico. The increase of research and development related to untapped gas and oil reserve is also expected to boost the market growth in the region. The drilling chemicals market in the Asia Pacific is estimated to witness significant growth owing to an increase in oil exploration fields.

Competitive Analysis

Key players operating in the drilling chemicals market include Halliburton, Oren Hydrocarbons, Schlumberger, M-I SWACO, Diamoco Group, Newpark Drilling Fluids LLC., Baker Hughes, Global Fluids & Chemical Co., Weatherford International Ltd., Canadian Energy Services Inc., International Drilling Fluids and Engineering Services (Idec) Ltd., Tetra Technologies Inc., MB Holding Company LLC, and Anchor Drilling Fluids Inc.

In May 2019 Baker Hughes launched a drilling fluid named DELTA-TEQ, which has a low-pressure impact.

Increasing Demand from Various End-Use Industries to Augment the Blowing Agents Market Growth

 

A blowing agent is a material that is able to create a physical structure through a chemical process at various temperatures through aqueous solution or a phase change in various materials which undergoes hardening, such as plastics, polymers, and other metals. Blowing agent are usually used when the blown object is still in a solid phase. The blowing agents used in the blowing industry have been prepared by combining a dispersing agent and a curing agent with an optional lubricating ingredient. The final composition of the agent depends on the application, the size of the blowing agent, and the type of the target. The blowing agents are widely used across various end-use industries such as automotive, packaging, construction, etc.

Market Dynamics:

Increasing demand for blowing agents from various end-use industries, such as construction, and rising infrastructure development, especially in the Asia Pacific, coupled with favorable government initiatives, are expected to propel the growth of the blowing agents market. For instance, India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. Moreover, the Government has suggested investment of US$ 750 billion for railway infrastructure from 2018-30.

Moreover, increasing demand for eco-friendly blowing agents due to stringent regulations is expected to augment the growth of the blowing agents market. Increasing urbanization and industrialization due to increasing population worldwide is also expected to fuel the growth of the blowing agents market. For instance, according to the United Nations estimates, the current world population is around 7.8 billion as of January 2021.

Increasing use of blowing agents in the automotive industry and technologies advancements are expected to drive growth of the blowing agents market. For instance, in 2019, LANXESS partnered with Citrine Informatics to deploy artificial intelligence (AI) in product development. However, increasing CFC emissions are expected to restrain the growth of the blowing agents market.

Competitive Analysis:

Major players operating in the blowing agents market are Arkema, Solvay, HARP International Ltd., Americhem, Linde AG, Haltermann GmbH, AkzoNobel NV, Foam Supplies, Honeywell International Inc., and DuPont.

Major players in the market are adopting various strategies, such as product launch, to enhance their market presence or to strengthen their product portfolio. For instance, in January 2021, DuPont launched its reduced global warming potential solution for Styrofoam Brand Extruded Polystyrene Foam Insulation. As Canada continues the phase-down of hydrofluorocarbon blowing agents, DuPont is ready with a reduced GWP formulation that maintains the same industry-leading performance of the familiar blue insulation material.

The Global Pipe Coatings Market Continues To Grow Owing To the Increase in Demand from Infrastructural and Construction Facilities in the Developing Nations of the World

 

Pipe coating materials that are used in manufacturing processes come in a variety of synthetic materials that include epoxy polymers, urethane coatings, thermoplastic rubber, and others. Once the pipe is made, the pipe manufacture typically applies the pipe coating at the same time. This has several benefits to manufacturing operations. The coating can easily be applied in an even manner, the surface of the pipe is always clean, and different application methods can be more accurately controlled. Pipe coating materials come with several different benefits when applied to pipes in specific applications. One of these is corrosion protection. Commonly used pipe coating materials provide the pipelining with greater resistance to acid corrosion (rusting), heat corrosion (corrosion of copper & zinc) as well as mechanical wear and tear. Additionally, these materials provide the liner with protection from chemical corrosion. Chemical corrosion (rusting) occurs when metallic surfaces come into contact with one another, creating a reaction that can cause both the metal or iron that compose the joint to deteriorate, which in turn can allow waste products from rusting to leak into the pipeline or drain field, which in turn poses a hazard to the environment.

Market Dynamics

The main driving factor influencing the growth of the pipe coatings market is the increasing demand for energy from the rapid expansion of infrastructural and construction facilities in emerging economies worldwide. According to Manufacturers’ Association for Information Technology (MAIT), in India, there are 200 construction companies in the corporate sectors while approximately 120,000 class A contractors are registered with the various government construction sectors. Moreover, the need to transport oil that has been produced afterward in these industries is also boosting the market growth. The manufacturing firms in the global pipe coatings markets are getting backed by favorable regulations made by governmental bodies such as FDI policies and reduced taxes.

However, the high costs associated with the pipe coating processes are the main restraining factor hindering the market growth. Moreover, the presence of a high amount of volatile organic compound (VOC) in the coatings is another reason that could be expected to affect the market adversely.

This market is distributed in five regions that include North America, Europe, Asia-Pacific, Middle East, and Africa, and Latin America. Among these, North America is expected to hold a bigger share of the pipe coatings market owing to the increased production of oil from Delaware and Permian basins, which has rapidly boosted the demand for installation of new pipelines and expansion of the current ones to the Gulf Coast Refineries. Moreover, pipeline construction is more cost-effective than trucking, which enables the companies to cut losses. The market in Asia-Pacific is estimated to witness significant growth owing to the increased demand from the chemical industry, which has resulted in rapid growth in the market in India, Indonesia, and China.

Competitive Analysis

The key players in the pipe coatings market include E.I. Du Pont Nemours and Co., Bredero Shaw, Wasco Energy Group of Companies, Bayou Companies, Celanese Corporation, Covestro AG, and Dow Chemical Company.

In March 2019, PPG Industries Inc. launched the PPG ENVIROCRON, which is a new line of maximum protection edge coatings at the Powder Coating 2019.

Increasing Prevalence of Anemia to Augment the Ferrous Sulfate Market Growth

 

Ferrous Sulfate refers to a group of metallic salts with the chemical formula FeSO₄. These compounds have several common names such as ferric sulfates, hydroxyl elastomerates, and hydroxyl esters. These compounds can exist in two forms, the sulfated form which is known as blackboard sulfates, and the non-sulfated form which is called keyboard sulfates.                 

Ferrous Sulfate is used to help prevent and treat anemia (iron deficiency) and is an active ingredient in many blood transfusions. It is considered to be a safe and natural drug. Moreover, it is widely used to treat hazardous waste and as a coagulant to treat industrial effluents, drinking water, and sewage waste. It is increasingly also being used in water treatment systems, construction, and pharmaceuticals industry.

Market Dynamics:

Increasing demand for ferrous sulfate in the water treatment sector and stringent government regulations are expected to propel of the ferrous sulfate market growth. Governments have made industrial wastewater treatment mandatory before discharging it into the environment. For instance, in November 2017, Maharashtra (India) government sanctioned a policy, making it compulsory to recycle and reuse wastewater.

Moreover, increasing prevalence of anemia worldwide is expected to augment the growth of the ferrous sulfate market. Ferrous sulfate is used to treat iron deficiency by oral administration. For instance, according to the World Health Organization (WHO), anemia is a serious global public health problem that particularly affects young children and pregnant women.

Increasing demand for ferrous sulfate in the construction and pharmaceuticals industry is also expected to fuel the market growth.

However, the availability of substitutes, such as ferric chloride and alum, for ferrous sulfate is expected to restrain the growth of the ferrous sulfate market.

Competitive Analysis:

Major players operating in the ferrous sulfate market are PJSC Sumykhimprom, Changsha Haolin Chemicals Co., Hong Yield Chemical Industrial Co., Chemland Group, Coogee Chemicals, Rech Chemical Co. Ltd., Verdesian Life Sciences, Venator Materials PLC, and Crown Technology.

Major players in the market are involved in different business strategies such as product launch, business expansion, etc. to enhance their market presence or to strengthen their product portfolio. For instance, in January 2021, Affinity Chemical LCC announced construction is nearing completion on its new Prattville, Alabama, facility. The eco-friendly, zero-emissions facility will supply bulk aluminum sulfate and other specialty chemicals (such as ferrous sulfate) to local paper mills and other industrial and municipal customers.

Increasing Demand for Crude Oil Worldwide to Augment the Crude Oil Flow Improvers Market Growth

 

Transportation plays a vital role in transporting crude oil through pipelines in an efficient way. Transportation of crude oil in the cold region is very challenging as it thickens while traveling long distances. Therefore, it is important to maintain the viscosity of crude oil without compromising quality. Flow improvers are emerging as a subsidiary for the oil companies, providing suitable solutions from the reservoir to the refinery and maximizing production. Moreover, crude oil flow improvers (also known as drag reducers) help increase the flow rate, as well as flow within the pipeline, reducing turbulence.

The growth of the crude oil flow improvers market is attributed to the increasing demand for crude oil worldwide. In 2019, the demand for crude oil was 100.1 million barrels per day and is expected to fall to 91.3 million barrels per day in 2020, owing to the economic and mobility impacts of the global pandemic (COVID-19), as well as widespread shutdowns worldwide. According to Statista, both China and the United States are the largest consumers of oil in the world, with 14 million and 19.4 million barrels per day, respectively. Furthermore, oil consumption is expected to increase by 49% from 268 million barrels per day in 2013 to 399 million barrels per day by 2040, according to the OPEC forecast.

Crude oil is one of the world's largest energy resources, therefore, it becomes necessary to use and distribute crude oil productively and efficient. Moreover, crude oil flow improvers provide an optimal solution for all the three stages such as extraction, transport, and refining. These factors are expected to propel the growth of the crude oil flow improvers market. However, low oil prices are expected to restrict the growth of the market, as lower oil prices decrease the upstream profits of petroleum enterprises and restrict investments, development activities, and exploration. 

In terms of geography, the crude oil flow improvers market is divided into six regions, such as North America, Europe, Asia Pacific, South America, the Middle East, and Africa. North America is expected to witness robust growth in the market due to increasing oil exploration and production activities in the region. For instance, in 2019, North America produced around 24.61 million barrels of oil per day. Furthermore, due to the lifting of sanctions on Iran, various companies have shown an inclination towards investing in the region, which is offering around 18 energy and power blocks and around 50 onshore and offshore projects valued more than US$ 185 billion by 2025.

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Cosmetics and Personal Care Products are Increasing Demand for Phenoxyethanol Preservatives

 

Phenoxyethanol is a preservative used in cosmetics and personal care products. It is normally used in combination with other preservatives, as its activity is weak against mold and yeast. Phenoxyethanol is a colorless, clear and oily liquid produced by a reaction between phenol and ethylene oxide at high temperature and pressure. Phenoxyethanol preservatives are aromatic in nature and possess important valuable properties. Chemically, phenoxyethanol is known as a glycol ether or a solvent. It is used in many applications, such as pharmaceuticals, cosmetics, and vaccines as a preservative. It is listed as a vaccine ingredient in the European Union, the United States, and Japan.

The growth of the cosmetics industry and the increasing demand for cosmetics and personal care products in countries such as China and India are expected to increase the demand for phenoxyethanol preservatives. They are popular as they have a wide spectrum of antimicrobial activity and are less toxic. Moreover, some regulatory bodies such as the United States Food and Drug Administration (FDA) have limited the product use up to 1% w/w concentration in cosmetics due to product toxicity. Similar regulations have been made in Japan and the European Union. Thus, such government regulations and the availability of substitutes are expected to hamper the market growth.

Moreover, the increase in disposable income and growth in the e-commerce sector are the major factors driving the demand for cosmetics and personal care products in developing countries. In terms of geography, the phenoxyethanol preservatives market splits into North America, South America, Asia Pacific, Europe, the Middle East, and Africa. With their increasing use in detergents and cosmetics, the demand for phenoxyethanol preservatives has increased significantly in the Asia Pacific. APAC is expected to hold about 45% of the overall market by 2020. Europe is also expected to witness substantial growth in the phenoxyethanol preservatives market. Countries such as Germany, Italy, and France have leading cosmetics manufacturing companies, such as Unilever and Revlon, which are using phenoxyethanol preservatives in limited concentrations after being approved by the European Council.

Key players operating in the market are adopting organic growth tactics such as product line and range expansion. They are also focused on launching new products to meet the increasing demand as well as to strengthen their market presence. For instance, in 2018, Dow Microbial Control launched two new product lines, NEOLONE PH and NEOLONE Bio, within its personal care preservatives portfolio. According to the company, both product lines are safe and more efficient.

MINING Chemicals Market Gets a Major Boost with Strategic Partnership between German Chemicals Giant BASF SE and IntelliSense.io to Incorporate AI solutions in Mining industry

 

Mining is a field where large quantities of chemicals are used to help get at the precious metals found deep within the earth. However, as all mining requires these materials in order to be able to do their job effectively, there is a need for highly trained chemical engineers in this particular field. In fact, it is estimated that up to one hundred thousand chemicals are used during the course of a single mine. Mining chemicals are no longer something that simply has to do with mining and prospecting for precious metals. The need for these chemicals is no longer restricted to those involved in this industry alone but extends to industries such as agriculture and other areas of the chemical sector as well. These chemicals are used to help break down the metal before any other forms of processing take place, meaning that it is essential that their efficiency as well as their safety are maintained.

Rising consolidation in the mining industry is expected to drive growth of the global mining chemicals market during the forecast period. Key coal industry players are focused on the consolidation of businesses via merger and acquisition activities. For instance, in August 2020, the Government of China approved a merger for two coal miners Yankuang Group Co. Ltd with Shandong Energy Group Co. to create a new firn Shandong Energy Company Ltd. Furthermore, in June 2020, Zijin Mining acquired 50.1% stakes in Tibet Julong Copper for US$ 550 million. Such consolidation of business is expected to boost the mining industry. Therefore, these factors are expected to drive growth of the global mining chemicals market during the forecast period. Furthermore, rising investments in the mining industry are expected to propel the global mining chemicals market growth in the near future.

However, slow growth of the mining industry, especially in developed countries combined with the environmental impact of mining chemicals is expected to hinder the global mining chemicals market growth in the near future. Furthermore, rapid growth of the mining sector in Africa and Eastern Europe can provide major business opportunities in the global mining chemicals market. Rising importance of water management activities in the Asia Pacific can present lucrative growth opportunities in the near future.

Major companies involved in the global mining chemicals market are BASF SE, 3M, Orica Limited, Betachem (Pty) Ltd, CTC Mining, Chevron Phillips Chemicals Co. Ltd, Clariant AG, The Chemours Company, Orica Limited, AECI, and Arkema.

For instance, in July 2020, BASF SE, a Germany-based chemicals company, partnered with IntelliSense.io to deliver AI solutions in mineral processing and chemical expertise.

 

Increasing production of cement to augment growth of the global mining chemicals market.

 

Raw materials such as cyanide, sulfuric acid, nitric acid, uranium, mercury, and lead are used for the manufacturing of mining chemicals. Increasing production of cement is expected to propel growth of the global mining chemicals market over the forecast period. For instance, according to International Energy Agency, 4.1 Gt of cement were produced globally in 2019. Production reached a high of 4.2 Gt in 2014 and has since remained at around 4.1 Gt.

Market Insights

Significant growth in the construction and infrastructure sector is expected to offer lucrative growth of the global mining chemicals market. For instance, according to the data released by the Associated General Contractors of America in January 2020, construction expenditure in the U.S. increased 4.1% from November 2018 to November 2019. Moreover, rapid urbanization is also expected to aid in growth of the global mining chemicals market. 

However, high cost of transportation and logistics of mining chemicals is expected to hinder growth of the global mining chemicals market. The market in Asia Pacific is driven by high production of gold. For instance, according to World Gold Council, at a country level, China was the largest producer in the world in 2019 and accounted for around 11 per cent of total global production in 2019.

The demand for mining chemicals is expected to decrease due to decline in the automotive sector. The emergence of Covid-19 has led to significant decrease in demand for automobiles. . For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019. In April 2020, Kia Motors announced that its South Korea-based contract manufacturer for compact vehicles has suspended production.

Competitive Analysis

Major players operating in the global mining chemicals market include, Ashland Inc., BASF SE, The Dow Chemical Company, Chevron Phillips Chemicals Company LP, Clariant AG, Cytec Industries, Nalco Company, Air Products and Chemicals, Inc., and AkzoNobel Performance Additives.

Major players operating in the global mining chemicals market are focused on adopting partnership strategies to enhance their market share. For instance, in May 2019, BASF entered an exclusive agreement with Quadra Chemicals Ltd., to present its mining solutions portfolio of products in Canada and Alaska.