By OGJ editors
HOUSTON, Nov. 18 -- Demand for formulated oil field chemicals in the US will grown by 6%/year through 2007 to $4.15 billion compared with a 2002 demand base of $3 billion. said Freedonia Group Inc., a Cleveland market research firm.
Oil field chemicals growth will be driven by a recovery in the number of drilling rigs, by increasing gas production, and the continued maturity of US crude oil fields, said a new study entitled, "Oil Field Chemicals."
Deeper and more complex wells coupled with a continued move toward drilling in harsher deepwater environments also will boost demand, the study said.
Drilling fluids
Drilling fluids, the largest segment of the formulated products market, will see above-average gains and provide the best opportunities for growth through 2007, Freedonia said.
Commodity chemicals, such as clay and barite, are the most commonly used raw materials in drilling fluid formulation and will see rapid growth as drilling activity expands through 2007, the study predicted.
Stimulation chemicals
Stimulation chemicals and enhanced oil recovery products also will see healthy gains through 2007, the study said.
Declining oil reserves and maturing US oil fields are expected to require greater amounts of chemicals to improve or maintain production levels. Efforts to increase US oil production to limit the nation's dependence on foreign oil also will fuel demand for EOR and stimulation chemicals, the study said.