Europe Oilfield Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• COVID-19 negatively impacted the market in 2020. The nationwide lockdowns and stringent social distancing mandates led to supply chain disruptions across different market segments. However, the market is expected to grow steadily owing to increasing investments in exploration and drilling and demands for energy in the European region.
• The major factors driving the market studied are the increased shale gas exploration and production and the rising demand for petroleum-based fuel from the transportation industry. Environmental sustainability in shale gas extraction is expected to hinder the market's growth. New horizons opened up due to offshore drilling operations are likely to act as an opportunity in the future.

Europe Oilfield Chemicals Market Trends

Well Stimulation to Dominate the Market

• The well-stimulation segment holds the largest share of oilfield chemicals by application. The chemicals used in this segment include acid corrosion inhibitors, surfactants, and non-emulsifiers. These provide excellent protection to oil well equipment, pumps, and trucks from corrosion while working with acid for the well-stimulation process. Surfactants reduce the surface tension of various acids, acid additives, and water fracturing.
• The best application of these chemicals is seen in the production of unconventional resources like shale gas and tight oil, where there is a requirement for technologies such as hydraulic fracturing and acidizing.
• As per data published by British Petroleum, oil production in the European Union reached 366 thousand barrels per day in 2021. This will impact the demand for oilfield chemicals required for well stimulation.
• Europe is expected to shift its focus to shale exploration in the North Sea due to an increasing requirement for energy self-sufficiency. Hence, the well stimulation chemicals are supposed to have a very profitable market in the near future.

Russia to Dominate the Market

• Russia is the second largest producer of crude oil globally, with verified oil reserves of about 80,000 million barrels of oil. The country greatly depends on the revenues obtained from the oil & gas industry, which accounts for around 40% of the federal revenues.
• Russia's oil and gas industry is crucial in the global market, supplying about 13% of the global liquid hydrocarbon exports.
• Also, there are increasing exports of natural gas from Russia to the Asia-Pacific region, especially China, due to the competitive pricing mechanism for natural gas.
• Russia is expected to continue as one of the significant producers of oil & gas in the long run, but the recent agreement to cut the crude oil output might temporarily slow down the growth of the petroleum industry.
• As per data published by British Petroleum, oil production in the European Union reached 10,944 thousand barrels per day in 2021. This will impact the demand for oilfield chemicals.
• Hence oilfield chemicals are expected to witness moderate growth in Russia during the forecast period.

Europe Oilfield Chemicals Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
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