Emerging Trends in Enhanced Oil Recovery Chemicals Market in the United States and Europe

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EOR chemicals and advanced crude oil extraction technologies based on chemical injection are expected to tap more oil from the rapidly maturing reserves. The specialty oilfield chemicals, including EOR chemicals are expected to undergo continuous technological improvements in spite of rising prices in energy and decelerating global oilfield activity.

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Emerging Trends in Enhanced Oil Recovery Chemicals Market in the United States and Europe

  1. 1. Emerging Trends in Enhanced Oil RecoveryChemicals Market in the United States andEurope
  2. 2. 2 I’ve more then four years experience in a broad range of chemicals andmaterials industry sectors in Europe and the Commonwealth of IndependentStates (CIS). I’ve extensive expertise in construction chemicals and materials, plasticsmaterials, photovoltaics and water, wastewater and sludge treatment chemicalsmarkets as well as EOR chemicals markets Before Frost & Sullivan, I was involved in research based on nano-compositelithium salt electrolytes which can find application in various electrochemicaldevices I’ve a Doctorate in Chemistry from Max Planck Institute for Solid StateResearch/Stuttgart University, Stuttgart, Germany a Master of Science andEngineer in Chemical Technology (Process and Chemical Engineering) fromPoznan University of Technology, Poznan, Poland and was on an ExchangeSokrates/ERSAMUS scholarship at Louis Pasteur University in Strasbourg(ECPM), France In my spare time I enjoy travelling, photography and reading. I also like toexperiment in the kitchen, probably because I am a chemist.Dr. Anna JarosikIndustry AnalystFrost & SullivanCentral and Eastern EuropeWarsaw, PolandAbout Anna
  3. 3. 3Current EOR Chemicals Market TrendsEnd-user FocusIt is crucial for chemical manufacturers to offer customised enhanced oilrecovery chemicals and technological solutions that in general depend on thespecific environmental conditions related to crude oil extraction. EORchemicals facilitates the functioning of equipment and significantly improve oilextraction.ExpansionStrategiesMultinational companies such as SNF s. a. s., TIORCO, Kemira, The DowChemical company and Shell Chemicals are focusing on regions that havemature oil fields and at the same time regions attractive for EOR chemicals.They’ll try to expand their businesses by looking for end-users who would usechemical solutions.ImprovedChemicalsPerformanceBy investing in innovative, advanced and highly effective EOR chemicals whilstmaintaining high environmental and quality standards EOR chemicals arecrucial for enhancing the crude oil extraction efficiency. There is also a trend tooffer bio-based chemicals, for example bio-polymers that are bio-degradableand more environment friendly.Supply ChainManagementThe key EOR chemicals manufacturers are aware of the importance of supplychain management and professional, technical and after-sales support.Manufacturers offering basic chemicals are engaging in partnerships withchemical distributors. Manufacturers of advanced EOR chemicals tend tocreate closer partnerships with oil producers or/and engineering companiesthat provide EOR technology.Source: Frost & Sullivan analysis
  4. 4. 4Four Big Predictions for 20192Rising oil prices, ageing oil fields, rapidly escalating global energy demands, and adesire to increase energy independence are likely to drive developments andimprovements in EOR chemicals.3EOR chemicals and advanced crude oil extraction technologies based on chemicalinjection are expected to tap more oil from the rapidly maturing reserves.1The current increase in crude oil production is expected to create a need for variousenhanced oil recovery technologies, including the chemicals injection method.4The specialty oilfield chemicals, including EOR chemicals are expected to undergocontinuous technological improvements in spite of rising prices in energy anddecelerating global oilfield activity.Source: Frost & Sullivan analysis
  5. 5. 5EOR Chemicals Demand46.5%16.4%0.5%17.8%15.8% 2.9%Polymers SurfactantsAlkali Chemicals Surfactant-Polymer FormulationsAlkali-Surfactant-Polymer Formulations Other Chemicals*58.5%12.3%0.3%10.4%16.1%2.4%Polymers SurfactantsAlkali Chemicals Surfactant-Polymer FormulationsAlkali-Surfactant-Polymer Formulations Other Chemicals*Total Enhanced Oil Recovery Chemicals Market:Segmentation by Chemicals, The United States and Europe2012 2019Key: *Other chemicals segment include cleaningagents, demulsifiers, hydrate inhibitors. Note: All figures are rounded. The base year is 2012.Source: Frost & Sullivan analysis
  6. 6. 6Growth Opportunities Matrix for EOR ChemicalsNote: All figures are rounded. The base year is 2012.Source: Frost & Sullivan analysisCAGR,2012–2019SurfactantsRevenue in 2019 ($ Million)OtherChemicals*Surfactant–PolymerFormulations> 2% loss 2% loss – 5% gain > 5% gainUnknownProfitabilityPolymersAlkaliChemicalsAlkali-Surfactant-PolymerFormulationsKey: *Other chemicals segment include cleaningagents, demulsifiers, hydrate inhibitors.Polymers as well as formulations containing alkali chemicals, surfactantsand polymers as highly effective chemicals present the largestopportunities as EOR chemicals.
  7. 7. 7EOR Chemicals Market SituationSegmentTotal MarketShareSegmentStageKey ChemicalsKey MarketParticipantsCAGR (2012-2019)Polymers 46.5 % Growth HPAM Bio-polymers Associating polymers SNF s.a.s. Kemira BASF Ashland27.4 %Surfactants 16.4 % Growth Petroleum-based Synthetic Bio-surfactants Co-surfactants/co-solvents Huntsman Shell Chemicals Dow BASF Rhodia18.4 %AlkalineChemicals0.5 % Growth Hydroxides Silicates Carbonates Dow Solvay Chemicals FMC Co. Akzo Novel N.V.16.2 %Surfactant-PolymerFormulations17.8 % Growth Anionicsurfactants/HPAM Anionicsurfactants/PS TIORCO Dow Akzo Nobel N.V. VeruTEC®14.2 %Alkali-Surfactant-PolymerFormulations15.8 % Growth Carbonates/Anionicsurfactants/HPAM Hydroxides-Anionicsurfactants/HPAM TIORCO Shell Chemicals Dow Schlumberger23.6 %Key: HPAM stands for hydrolized polyacrylamide; PS stands for polysaccharides (bio-surfactant) Note: All figures are rounded. The base year is 2012.Source: Frost & Sullivan analysis
  8. 8. 8Regional Trends in EOR Chemicals MarketThe U.S.EuropeYearThe UnitedStatesNordicCountriesThe UnitedKingdomBalkanCountriesThe Rest ofEurope*($ million)2012 261.9 78.6 36.0 12.3 20.52019 1,132.5 326.6 156.2 74.6 85.2CAGR (2012-2019)23.3 % 22.6 % 23.3 % 29.4 % 22.6 %Key: *Rest of Europe includes Austria, Baltic countries, Benelux countries, Czech and Slovak Republic, France,Germany, Hungary, Ireland, Iberian countries, Italy, Poland and Switzerland.Note: All figures are rounded. The base year is 2012.Source: Frost & Sullivan analysis
  9. 9. 9The CEO’s Perspective2The need for innovative, sustainable, andeconomically viable EOR chemicals isexpected to drive the market.3EOR chemical manufacturers are focusingon providing advantages such as improvedextraction efficiency, cost reduction, betterregulatory compliance and multi-applicationcapabilities4Close and active partnerships with key oilproducers as well as EOR technologyproviders offer better opportunities for EORchemicals.1Rapid depletion and ageing of crude oilreserves are expected to strongly determinethe EOR chemicals market’s development,leading to continued growth.Source: Frost & Sullivan analysis
  10. 10. 10http://twitter.com/frost_sullivanFollow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitterhttp://www.facebook.com/FrostandSullivanSearch Group: Future of Chemicals - A Frost & Sullivan Forumhttp://www.slideshare.net/FrostandSullivan
  11. 11. 11Does This Look Interesting? Contact Us And Find OutMoreAnna JarosikIndustry AnalystChemicals, Materials and Food(+48) 22 481 6236anna.jarosik@frost.comLeonidas DokosResearch ManagerChemicals, Materials and Food(+44) 186 539 8685Leonidas.Dokos@frost.comChiara CarellaCorporate CommunicationsEnergy & Environment(+44) 207 343 8314chiara.carella@frost.com

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