This document highlights on the global merket position of pour point depressant used in crude oil transportation from drilling wells and also land transportation through pipe lines.

1. Global Market and Trends: Pour Point Depressant
Chandran Udumbasseri
Technical Consultant
chandran.udumbasseri@gmail.com.
1. PPD:
 Brings crudes, middle distillates or marine fuel to specification
 Improve transport and pumpability of especially waxy crudes
 Increase crude slate through PPD injection while unloading waxy crudes
2. Advantages in using PPD for crude oil.
 Treat discounted, high paraffin crudes & residual fluids. Reduce costs
associated with blending cutter stock with high paraffinic oil.
 Improve pipeline flexibility by allowing transportation of highly paraffinic oils
without heating.
 Win flexibility by increasing No of crude slates.
 Reduce heating in fuel distribution system.
 Avoid removal costs of solidified paraffin waxes Reduce pumping costs
 Upgrade value of refinery residues / heavy fuels
 Bring Marine Diesel, especially DMA and DMB to Pour-Point specification
 Use Biodiesel of all generations, even in higher concentration or pure.
3. Where are PPDs used in oilfields?
Oil exploration: transporting the oil from the drilling well to the gas-oil water
separating unit
Production: once crude oil separated from gas and water the dry crude oil
from storage facility is transported to shipping harbor or to refineries
Refineries: crude oil after fractional distillation, separated into different
fractions. High boiling fraction which contains paraffin should be treated with
PPD to avoid precipitation and sedimentation of wax during storage and
transportation
4. Polymer based PPD market
Market survey of 2016 shows a market worth of $1487.2 million with a CAGR
of 3.7% during the period of 2017-2023 in the lubricant, automotive and oil&
gas sector
5. Delivery of final product package
The product can be distributed and sold through:
5.1. Supply channels through distribution agencies
5.2. Direct sale to the customer on long term contract basis 5.3.
Whole sale to distributor
5.4. E-Commerce
Third party distribution is the preferred one. Direct sale and E Commerce
provide low cost
6. Polymer chemistry of existing PPD market
6.1. Ethylene vinyl acetate global market share 51%
6.2. Poly alfa olefin global market share 37%
6.3. Poly alkyl methacrylate global market share 12%

2. 7. Who are producing PPDs
7.1. Chevron Phillips corporation global presence in 180 countries
7.2. Croda international global presence in 30 countries
7.3. Lubrizol corporation global presence in >100 countries
7.4. Evonik industries AG global presence in > 100 countries 7.5. Akzo
Nobel NV global presence in80 countries
7.6. Clariant AG global presence in 40 countries
7.7. Innospec Inc global presence in 23 countries
7.8. Sanyo Chemical industries in 6countries
7.9. Afton Chemicals
7.10. Messina Chemicals
7.11. BASF
7.12. DOW
7.13. ENI
7.14. Dorf Ketal
8. Where are polymer based PPDs applied?
8.1. Growing demand of vehicles, resulting in high demand of lubricants and
increasing crude oil refining capacity to cater to the growing energy demand.
8.2. Asia-Pacific has the highest refining capacity, accounting for 32.1% of the
world’s total refining capacity, where China, India, Japan, and South Korea
held 77.1% of the region’s refining capacity
8.3. On the basis of chemistry, the Pour point depressant market for lubricant
industry is segmented into polyalkyl methacrylate (PAMA), styrene esters,
and others
8.4. On the basis of chemistry, the Pour point depressant market for oil and
gas industry is segmented into ethylene co-vinyl acetate (EVA), poly alpha
olefin, and PAMA. EVA is expected to register the fastest growth in the Pour
point depressant market
8.5. PPDs are used to control wax formation in lubricants, thus lowering the
pour point and improving low temperature flow performance of lubricants. . It
is used in various types of lubricants including crankcase engine oils,
automotive and power transmission fluids, automotive gear oils, tractor fluids,
hydraulic fluids, and circulating oils.
8.6. The Pour point depressant market is expected to witness a significant
growth in the automotive industry
8.7. The consumers are inclining more toward premium quality lubricants to
boost the engine performance and avoid any engine related issue, which is
expected to boost the demand
8.8. The cross-country pipeline projects and increasing investments in
refinery set up will offer vast opportunities for manufacturers and will fuel the
growth of industry
8.9. Wax formation leads to many serious issues in pipeline transportation of
crude oil and associated products, such as clogged pipeline, which results in
increased operation and maintenance costs. It plays a significant role in
inhibiting wax formation and reducing the transportation cost of crude oil.
Therefore, the increasing demand from emerging economies will fuel the
growth of the global market in the oil and gas industry.

3. 8.10. 2017 survey showed China emerging largest PPD consumer ranging to
34.4% of world requirements followed by North America, Western Europe
9. Safety precautions while handling PPD
9.1. Most Pour Point Depressants are solid or waxy at room temperature and
have to be warmed up before used. The time, effort and complexity required
to use a PPD increases. It is difficult to use heating systems in special areas,
like EX-zones or on board. Fluid PPDs at ambient temperature can solve the
problem.
9.2. All the major polymer based PPDs are polymerized products.
9.3. None of the PPDs EVA, PAO and PAMA is reported as hazardous once
final product is made. Only solvents used to dilute or solubilize to increase
applicability can cause hazard.
9.4. During handling it is usual to adopt basic safety measures, like using
goggles, gloves, safety shoes and coveralls. 9.5. In developed countries
where saturation has occurred regarding demand of PPD, new safety
measures and regulatory rules which are becoming more stringent to protect
environment cause the PPD market sluggish.
10. What type of polymers exists commercially?
10.1. PPD based on EVA finds huge global market accounting 51% of the
total PPD market because its better applicability at low temperatures, good
wax inhibition in crude oil and refinery section.
10.2. Polyalfa olefin based PPD finds next global demand in the range of 37%
of total global market. Naphthalyne alkylated with chlorinated wax, homo and
co polymers of alfa olefins and amine of epoxidized alfa olefins find use as
PPD in this category. These PPDs are used in lubricating oils and
diesel fuels. As automotive industry gorws the demand for lubricating oils
increases and this can boost the demand for this type of PPD
10.3. Poly alkyl mathacrylate based PPD is used in lubricating oil and the total
global market demand is approximately 12%. There is available commercially
a line of poly (methacrylate) pour point depressants from the Rohm and Haas
Company under the tradename Acry loid. Also available are similar products
from Texaco under a trade designation of TLA followed by a numer ical suffix
or TC followed by a numerical suffix
10.4. Styrene maleic anhydride copolymer esters, alfa olefin maleic anhydride
esters are used as PPD and getting more applicability in fuel oils and
petroleum products and even vegetable based oils where paraffin is present.
11. What are the trends?
11.1. Manufacturing PPD require specific raw material with
specific characteristics for different applications including lubricants and oil
and gas.
11.2. PPD for crude oil require high quality as crude oil contains wax
11.3. EVA is the most preferred PPD for oil and gas industry
11.4. PAO and PAMA also finds use in Oil and gas
11.5. As crude oil refining capacity is increasing across the world, the demand
for PPD also increases
11.6. Considerable growth in Asia Pacific region especially
refining. Emerging economy rely heavily on oil and gas for meeting
their energy deman

4. 11.7. Cross country pipeline projects and investment in refinery offer vat
opportunity for PPD
11.8. Study growth rate in the global and US promote to drive demand for
PPD market through
11.8.1. New set up refineries
11.8.2. Cross country pipe lines
11.8.3. New production/ exploration fields
11.9. PAOs are effective as PPD in wax modification, lubricants, biodiesel
blends, improve low temperature viscosity and modify crystallization behavior
and having bio degradable property.
11.10. Compound Annual growth rate based on chemicals, from 2017 to
2023
11.10.1. EVA, 2.3%
11.10.2. PAO, 1.9%
11.10.3. PAMA, 0.9%
11.11. Compound Annual growth rate based on application, from 2017 to
2023
11.11.1. Production, 2.6%
11.11.2. Refineries, 3.9%
11.11.3. Exploration, 2.8%
11.12. CAGR global market region wise from 2017 to 2023 11.12.1.
Middle East & Africa, 2.2%
11.12.2. Europe, 2.5%
11.12.3. Asia Pacific, 4.8%
11.12.4. North America, 3.7%
11.12.5. Latin America, 2.7%
11.13. Asia Pacific region records high growth rate due to following reasons
11.13.1. Rural urbanization
11.13.2. Changing life style
11.13.3. Improving living standard
11.13.4. Development of infra-structure
11.13.5. Increasing population
11.14. Asia Pacific region, CAGR country wise 2017 to 2023
11.14.1. China, consumption, 18.6KT (Kiloton), CAGR, 3.6%
11.14.2. India, consumption, 5.7KT, CAGR, 4.1
11.14.3. Japan, consumption, 2.7KT, CAGR, 3.2%
11.14.4. Rest, consumption, 14.3KT, CAGR, 2.7%
11.15. North America Chemical consumption, CAGR country wise 2017 to
2023. North America recorded 20.5% of PPD of consumption ($ M) in
11.15.1. EVA, 63.6 (CAGR 4.2%)
11.15.2. PAO 46.3(CAGR 3.5%)
11.15.3. PAMA 14.1 (CAGR 2.4%)
12. Crude oils to be treated globally
Total recoverable oil around the world is 1209.26 billion barrels as estimated
by year 2016.
There are more than 65,000 oil and gas fields.

5. 94% of known oil is concentrated in 1500 giant and major fields. Major
oilfields are in Middle East
Super giants (>10billion barrels) are in Brazil, Mexico, Venezuela, Kazakhstan
and Russia. Oil shales worth 3 trillion barrels are also for treatment
Fields and their recoverable crude oil (billion barrels) 2016
SA Kuwait Iran Abu dhabi Mexico
Ghawar
(104)
Shaibaha (
15)
Abqaiq
(12)
Berry (12)
Manifa
(10)
Ferrozan
Marjan
(10)
Burgan (72)
Safdaniya
(30)
Mesopotami
an (72)
Randhatian
(11)
Avaz (65)
Guchsara
n (66)
Aghajari(2
8)
Esfandiar
(30)
Marun (10)
Upper
Zakum (50)
Cantarell
(25)
163 185 199 50 25
Venezuela Iraq Kazakhstan Russia US
Boliviar
coastal
(32)
Rumaik (17)
Majnoon (21)
Tengiz
(40)
Kashagu
n (30)
Smutler (16)
Romaskino
(17)
Priobskoy
(13)
Lyantorsk
(13)
Fyodorovsko
ya (11)
Sakhalin (14)
Pradhoe
bay (25)
Spaberry
trend
(10)
32 38 70 84 35
Libiya Brazil China
Sarir (12) Marlin (14) Dagiang
(16)
12 14 16

6. 13. New trends in polymer development
o New approach is to develop polymers with improved flowability, low
temperature performance and bio degradability
o Combination of EVA with DEA, MMD, AVF resin and hydrocarbyl
substituted phenol are developed
o Newly developed products
o Alfa olefin maleic anhydride amide
o N-octa decyl amine- maleic acid
o NN di allyl N octdecyl amine maleic acid
o Hexyl recinoleate-hexa decylmaliaimide-ethyl recinoleate
14. Indian Market
Indian exporters (export) price $ 2.1-3.1/Kg;
 Nalco Dai-ichi Karkaria
 Krishna Antioxidants
 Dorf Ketal
(Imported from China - PPD for Middle distillate $ 1.8-3.0/Kg).
15. Shale fracking and presence of wax
Oil shale contains inorganic materials, butimin and kerogen. Kerogen on
pyrolysis and hydrogenation gives oil which can be used directly. Shale oil
contains 12% n paraffin and 13% iso paraffin which shows that shale is
mostly wax type and needs processing to break down by pyrolysis.