The Saudi Arabian oilfield chemicals market revenues are projected to grow at a CAGR of around 5.1% during 2014-19, according to the new report by Research and Markets.
According to the “Saudi Arabia Oilfield Chemicals Market Forecast and Opportunities, 2019” report, Saudi Arabia is increasing its focus on leveraging unconventional shale gas resources.
The country has over 600 trillion cubic feet of shale gas reserves, which is more than twice the amount of proven conventional natural gas reserves. Saudi Aramco, the national oil company, is presently mapping shale gas reserves and carrying out piloting in three potential areas of the country that include north-west, south Ghawar and Rub-al-Khali. Growing development activities in the natural gas sector are expected to drive the demand for oilfield chemicals in the country over the next five years.
Oilfield chemicals are commodity or specialty chemicals used in drilling, production and transportation processes in oil or gas exploration. Various chemicals used in these processes impart different properties to fluids, improving oil production and process efficiency. Drilling fluid chemicals account for the highest share in the Saudi Arabian oilfield chemicals market due to high drilling activities or rig counts across the Kingdom.
Further, domestic consumption of oil is forecast to grow at CAGR of 7% during 2014-20, reaching an estimated 5 million barrels per day by 2020. In order to maintain its highest global share in energy exports, alongside meeting domestic energy needs, the Kingdom has planned projects to develop offshore non-associated natural gas fields as well. Baker Hughes is the current market leader in the country’s oilfield chemicals industry.
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