By OGJ editors
HOUSTON, Nov. 25 -- The worldwide market for oil field process chemicals is expected to grow to $2.3 billion by 2007 compared with $1.7 billion in 2002, forecast Business Communications Co., Norwalk, Conn., in a new report.
The pace forecast would mean an average annual growth rate (AAGR) of 6.6%. Currently, drilling and production chemicals account for 76% of the total market.
Enhanced oil recovery chemicals are forecast to grow the fastest of the field chemicals. BCC foresees a $92 million market in 2007 compared with a $34 million market this year. That would amount to an AAGR of 22%.
Production chemicals are expected to continue to dominate the oil field chemicals market, while drilling chemicals are expected to dominate the second largest market share with 36% of the total.
Stimulation, completion, and workover fluids will remain relatively stable, BCC said.
The field process chemicals market is expected to peak during 2005-10, BCC said. Many experts predict that oil production will peak in the same timeframe based upon known oil reserve data, BCC said.
"If these estimations materialize, a decline in oil drilling, exploration, and production would begin after 2005 and continue until the cost to produce oil becomes prohibitive. Demand should increase for natural gas, which is considered to be in abundance," a BCC news release said.
"The (US) Energy Information Administration reports are the most optimistic, predicting that the peak for oil production will occur around 2015. This would delay the decline in production until 2016 and continue until the cost to produce oil would be greater than using alternatives," BCC said.
Lack of oil would have a devastating impact on the oil field chemicals companies, BCC added. Many of the raw materials used to produce oil field chemicals are derivatives of oil. A lack of oil and its derivatives would drive up costs to produce oil field chemicals and would ultimately increase the cost to produce oil.
