Demand for formulated oilfield chemical products in the US is forecast to
advance 8.3 percent annually through 2015 to $13.6 billion. 
After a period of weakness beginning in late 2008 and lasting through much of
2009, the market returned to form, thanks to rising oil prices and ongoing
efforts to develop shale formations in different parts of the US.  Although
gas prices remain low by historical standards (and much lower than oil prices
in relative terms), the expectation of eventual price increases -- and the
immense promise of shale gas production -- has motivated producers to step up
investments in high levels of oilfield drilling and stimulation activities to
maximize output from existing wells and develop new resources.  Expanding
oil and gas production from an increasingly mature resources base will require
heightened levels of industry activity, which will drive future growth in
oilfield chemical demand.  These and other trends, including market share
and product segmentation, are presented in Oilfield
Chemicals, a new study from The Freedonia Group, Inc., a
Cleveland-based industry market research firm.  

The market potential for raw materials used in the formulation of
oilfield chemical products is based most fundamentally on the outlook for the
finished products in which they are used.  As a result,
raw materials such as natural gums, polymers, acids and surfactants used in
stimulation fluids are likely to register the fastest growth, driven by
continued expansion of well stimulation technologies, fueled in part by
sustained growth in shale development.  In contrast, gases and other
products used in enhanced oil recovery (EOR) materials are likely to post less
impressive, though still considerable, advances. 

Stimulation chemicals are expected to register the fastest growth among
the major product categories.  Demand will be driven by
the need to maximize oil output from existing wells in established fields, as
many of the largest existing fields are considered mature.  Finally,
stimulation techniques are used at the time of well completion in nearly all
new wells, which will provide further stimulus to growth as new wells are
completed.  Environmental concerns will continue to spur demand for new
formulations designed to eliminate or minimize the potential effects on
groundwater supplies. 

The Freedonia Group is
a leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.