Oilfield chemicals market to reach $8.62 billionStaff writer ▼ | January 14, 2014
"Escalating demand for energy driven by a burgeoning population and rapid urbanisation, coupled with rising energy prices is supporting natural gas production, especially from unconventional reservoirs. This intensifies the need for highly specialised oilfield chemicals,said Frost & Sullivan Chemicals and Materials Industry Analyst Anna Jarosik.
A key restraint affecting shale gas extraction and hence, the oilfield chemicals market in North America and Europe is the concern over environmental sustainability. Drilling and fracking use different types of chemicals that may affect public health, especially if they seep into groundwater.
Another huge social concern is water availability, as shale gas exploration and production is a water-intensive procedure. The lack of effective water recycling and the use of low-quality water during the extraction process, along with the shortage of suitable oilfield chemicals add to the challenge.
"Therefore, research and innovative in oilfield chemicals are extremely crucial to further market growth in North America and Europe. Unclear regulations and an unattractive investment climate must also be addressed to open up additional opportunities for oilfield chemical manufacturers, chiefly in Europe." ■