Shale Gas Expansion Drives Oilfield Chemicals Growth

March 5, 2012
Global sales expected to reach $19 billion by 2015, but regulations could mar future gains.

The global market for chemicals used in oil and gas drilling and production is expected grow at an average annual rate of 3.5% through 2015 as the industry continues to benefit from the expansion of shale gas drilling in North America, according to an IHS Chemical study released March 5.

IHS projects worldwide oilfield chemical sales will reach nearly $19 billion, up from $16 billion in 2010.

The United States and Canada accounted for 52% of the overall market in 2010.

Expanding shale gas resources in North America has brought record quantities of natural gas to the U.S. market, said Ray Will, principal analyst at IHS Chemical and co-author of the report.

"Increased supplies of natural gas have caused price declines, making gas more competitive both for electricity production and as a raw material for chemicals production here in the U.S.," said Will in a prepared statement.

But environmental and safety regulations related to offshore discharges during oil field operations could negatively impact future industry growth, Will said.

Political instability in Africa, Latin America and the Middle East could also impact industry growth.

Popular Sponsored Recommendations

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Your Industry 4.0 Journey

Sept. 24, 2023
When It Comes to Industry 4.0, the Journey is the Destination. Industry 4.0 must be embraced as a long-term, strategic mindset of digital transformation that dynamically alters...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!