by The Crude Oil Flow Improvers Market is estimated to be valued at US$ 1.67 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Crude oil flow improvers are specialty chemicals added to crude oil during production, transportation, and processing to help in removal of paraffin wax, asphaltenes and resins from crude oil. They aid in prevention of formation and deposition of these compounds on pipeline walls. This allows smooth flow of crude oil. The commonly used crude oil flow improvers include polyacrylate based chemicals, ethylene vinyl acetate based chemicals, polyolefin co-polymers and condensation polymers of sulfonated naphthalene.
Market Dynamics:
The crude oil flow improvers market is primarily driven by increasing exploration and production of heavy and extra heavy crude oil grades across the globe. According to International Energy Agency, the production of heavy crude oil is estimated grow at a faster pace and account for over 60% of worldwide crude oil production by 2030. Heavy crude oils have high wax and asphalt content which leads to issues like high pour point and viscosity. This makes their transportation over long distances challenging. Crude oil flow improvers effectively handle these problems thus witnessing higher consumption. Secondly, ageing oil pipelines also drive the demand for these additives. Old pipelines are more prone to wax deposition problems and flow improvers prevent shut down and restart issues in such pipelines.
Segment Analysis:
The global crude oil flow improvers market is segmented based on product type, application and region. By product type, the polymeric segment dominates the market as they improve crude oil flow at low dosage rates and temperatures. They prevent the formation and deposition of wax and asphaltenes. By application, extraction segment dominates the market as flow improvers are important for crude oil production from wells for smooth extraction process.
PEST Analysis:
- Political: Energy security concerns drive governments to support crude oil extraction industries with beneficial policies and trade agreements.
- Economic: Rise in crude oil consumption and prices boosts upstream investment in oilfields requiring flow improvers for efficiency. Stable crude prices encourage exploration and production activities.
- Social: Growing energy needs of expanding populations and rapid industrialization increase crude oil demand globally.
- Technological: Advanced flow improver formulations and nano-additive enabled products improve oil recovery and throughput. Digitalization aids remote optimization of chemical injection.
Key Takeaways
The global crude oil flow improvers market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing upstream oil and gas E&P activities supported by firm crude oil prices. The market size for 2023 is estimated at US$ 1.67 Bn.
Regional analysis – North America dominates the market led by the US, owing to large shale oil production. Asia Pacific follows on account rapid oil consumption in China and India driving extraction from mature fields requiring flow improvers.
Key players operating in the crude oil flow improvers market are Halliburton Company, BASF SE, LiquidPower Specialty Products Inc., Schlumberger Ltd., Baker Hughes, A GE Company, Nalco Champion, Clariant AG, Evonik Industries AG, Infineum International Limited, Innospec Inc., and others. Key players focus on developing bio-based and environment friendly formulations to increase market share.
