Rise in Technological Advancements Shaping the Future of the AMEA Oilfield Chemicals Industry

The Asia, Middle East, and Africa region is a major player in the global oil and gas industry, with a significant amount of storage and a growing requirement for supply. The use of oilfield chemicals is essential for the production and resolution of complex issues in the field of oil and gas exploration & production (E&P). The Asia, Middle East, and Africa oilfield chemicals industry growth is attributed to the rise in exploration activities, technological developments, and the requirement for enhanced oil recovery techniques.

The term “oilfield chemicals” refers to a group of compounds that are commonly used in the oil and gas industry to enhance the extraction process. Oilfield chemicals are used throughout the oil production process, from drilling and production to stimulation, enhanced oil recovery, oil well cementing operations, and more. Oilfield chemicals such as corrosion inhibitors (CIs), demulsifiers (DMFs), biocides (BOCs), surfactants (SOPs), and more are used to improve drilling process efficiency, reduce equipment corrosion, maintain fluid purity, and increase the oil recovery rate.

 As per the new report published by Allied Market Research, the Asia, Middle East, and Africa oilfield chemicals market is expected to grow at a notable CAGR of 4.3% during the forecast period.

The production and processing of crude oil utilizes extensive amounts of oilfield chemicals:

It is assessed that the oilfield chemicals demand is supported by the growing number of oilfield exploration projects in the Middle East, and African countries such as Russia, Qatar, Saudi Arabia, Kuwait, Nigeria, and several other countries. These countries hold oil reserves which in turn support the demand for oilfield chemicals.

Furthermore, the APAC region is a significant market, with new refineries being built to meet the growing demand for new units in the region. Also, the increasing need for refinery & petrochemical products in various end-use sectors is a growing demand for efficient crude oil. To fulfill the needs of crude oil products, suppliers have increased their refinery capacity. As a result, producers of crude oil are concentrating on growth and further investments in clean energy. Moreover, a considerable amount of oilfield chemicals is used in the production and refining of crude oil.

Baker Hughes announces construction of new oilfield services chemicals manufacturing facility in Singapore:

Oilfield chemicals are the core of the refinery industry and the oil & gas drilling and extraction industry globally. The leading companies are expanding their production and manufacturing facilities to emerging markets, including India China, and the rest of the Asia-Pacific region. In order to reduce operational costs due to the availability of cost-effective raw materials and low labor costs in these regions. For instance, In August 2022, Baker Hughes announced the construction of a new chemicals manufacturing facility specializing in oilfield services is being established in Singapore to expand its presence in Asia. This new facility will enable manufacturing, optimization, and the rapid delivery of fit-for-purpose chemical solutions. The new facility will produce, store, and distribute chemical solutions for downstream, midstream, upstream, and complementary industries. 

Baker Hughes Executive Vice President for oilfield services, Maria Claudia Borras, stated “Opening a new facility to meet the needs of our customers and invest for growth in the chemicals industry. We are delighted to make this investment and look forward to the future.” Baker Hughes has been committed to the region for many years. Investing in this facility allows them to create jobs, improve supply chain processes, and make operations more efficient.

Therefore, the growth of oil and gas production in the Asia, Middle East, and Africa region is expected to provide huge demand for oilfield chemicals as industry players continue investing in research and development (R&D), strategic partnerships, and innovation.

Related Post