Oilfield Chemicals Market Shows the Robust Growth in Upcoming Years
With the diminishing crude oil resources, the oil industry demands more futuristic procedures for the exploitation of natural resources. And consequently, the use of oilfield chemicals is becoming increasingly important. These chemicals are employed in oilfields daily to improve the recovery of oil from oil-wells. Different processes involved in the oil recovery include drilling, well stimulation, oil exploration, production, and maintenance. The chemicals used include drilling fluids, cementing additives, well stimulation fluids, and workover & completion fluids. Oilfield chemicals find application in corrosion inhibition, scale inhibition, hydrate inhibition, paraffin control, asphaltene control, oxygen scavenging, demulsification, foam control, pest control, emulsification, drag reduction, gelling, friction reduction, fracking, anti-freezing, and much more. Most chemicals are used for a particular operation during the oil recovery. Nonetheless, certain chemicals are used for more than one purpose, especially surfactant chemicals.
The market for oilfield chemicals is witnessing a significant boom because of the rise in oil exploration and production activities, demand for advanced drilling fluids, growth in deep-water & ultra-deep-water drilling projects, the expansion of shale oil & gas drilling & production, and the bringing of more petroleum crude oil wells to production state to meet the energy demand globally. In addition, the emergence of eco-friendly oilfield chemicals is likely to provide a prolific growth opportunity in the years to come. A report by Allied Market Research states that the global oilfield market was valued at $41,667 million in 2016 and is expected to grow at a CAGR of 5.2% to garner $59,925 million from 2017 to 2023. Nonetheless, crude oil price fluctuations and the rise in environmental concerns are likely to cause the market growth to slow down in the future.
New products are being introduced in the oilfield chemicals market due to the growing demand in the field. For instance, LUX Assure, a provider of chemical monitoring and management solutions launched Traxbio, a biocide mapping technology in November 2017. In the same month and year, Bri-Chem Corp, a leading provider of oil and gas drilling fluids opened its new drilling fluids and oilfield cementing lab and testing facility in Bakersfield, CA. In November 2017, LUX Assure launched a corrosion inhibitor micelle detection tool called CoMic which helps in effective corrosion management while oil recovery. As a result of these innovations, the market is growing at a significant rate. In a report on oilfield chemicals market published by Allied Market Research, it is stated that the market was valued at $41,667 million in 2016 and is expected to garner $59,925 million, growing at a CAGR of 5.2% from 2017 to 2023.
LUX Assure Introduces Traxbio
LUX Assure launched TraxBio, a biocide mapping technology recently. The first of its kind technology assists in mapping biocidal surfactants in oil and gas systems using the propensity of the chemical. Many biocides contain some micelle-forming surfactants to interfere with biofilms on pipe surfaces. Formed of nanoscale clusters of the biocide chemical, these micelles are detected with LUX Assure's TraxBio technology. The tool helps make better decisions about when and how many biocides to dose. Cost savings is generated where overdosing happens. Emma Perfect, CEO at LUX Assure said, "Biocide treatments need to be reviewed and adjusted to ensure the dose is based on actual performance, however in the past, it has been difficult to find a simple test which can be used on-site. Driven by feedback from operators that LUX works with, we identified the opportunity to further develop CoMic, part of our existing range of solutions, to create TraxBio and we are excited to launch this product to the market. Continued testing and feedback will allow us to further hone the potential applications of this world-first product, and as such we are actively seeking comments and opinions from technical industry professionals on its practical use in the field."
Bri-Chem Opens New Drilling Fluids and Cementing Lab
Bri-Chem Corp recently commissioned and opened its new drilling fluids and oilfield cementing lab and testing facility in their Bakersfield, CA location. The firm currently has two laboratories, with one serving Western Canada located in Calgary, Alberta, and the other one in Bakersfield, CA. The latter serves their customers across the USA oilfield cementing and drilling fluids industry with testing equipment, quality assurance, training, and research and analysis of critical fluids. The company believes that the ability to provide the additional services is important to hold a strong relationship with customers. Bri-Chem’s new facility aims to offer to test of oilfield cementing and drilling fluids for customers for different types of analyses including viscosity, fluid loss, lubricity, and more. The facility is also capable of carrying out customer specific analysis. Bri-Chem also hosts mud schools that offer materials and training to salespeople, mud engineers, and others involved in the drilling fluid market.
Corrosion Detection Tool by LUX Assure
In November 2017, Lux Assure developed a corrosion inhibitor micelle detection tool called CoMic. The tool is operator deployable and helps in effectively managing corrosion by informing the management of corrosion inhibitors and providing data on the optimal level of corrosion inhibitor. The CoMic technology gauges the presence of corrosion inhibitor micelles in oilfield fluids with the help of nanoscale aggregates of the chemical as a marker for optimal dosage. “Until now, micelle detection required Lux personnel to undertake on-site sample testing. Not only can this cause logistical issues, and additional costs for clients, but the process can also be delayed while travel is arranged, and bed space sought. A simple product that can be deployed by existing personnel alleviates these issues, reducing costs and logistical requirements. It also allows operators to deal with any concerns more promptly, and to look at trends in corrosion inhibitor availability over time," says Emma Perfect, Lux Assure CEO.
She also said that the on-site staff can now be trained to collect and test samples right there. She also said that the tool is strong and easy to use, resulting in easier and more frequent data collection. This translates to better monitoring and control of assets which may be vulnerable to corrosion. The data collected by CoMic remains important to system performance and related cost efficiencies by identifying if pumps are running at optimum levels or need an adjustment of corrosion inhibitor dosage.
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.
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