Crude Oil Flow Improvers Market To Hit Value .03 Billion By 2025
Posted by Mrudula Anil Karmarkar on December 8th, 2020
The global crude oil flow improvers market size is expected to reach USD 2.03 billion by 2025, according to a new report by Grand View Research, Inc. The market is estimated to grow significantly over the forecast period owing to shale revolution positively affecting the crude oil flow improvers (COFI) market. Despite several existing rigs being decommissioned over the last few years, the industry has witnessed an increase in the overall petroleum production. This has given an impetus to the need for utilization of these chemicals in the upstream extraction sector.
The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.
The existence and expansion of product pipelines have encouraged the utilization of these products to improve the productivity, minimize the throughput time and eliminate the bottlenecks during the various operations across the oil and gas value chain. Asphaltene inhibitors are anticipated to be the fastest growing segment over the upcoming years and is projected to grow at a CAGR of 6.3% from 2017 to 2025. These products help to reduce the precipitation of asphaltenes, preserve the asset integrity of the flow lines and optimize the operations over the forecast period. The utility of these chemicals is predominant in the extraction and pipeline segments. The problems associated with the extraction and transportation of asphaltenic crude include pipeline deposition and wellbore plugging. These unwanted bottlenecks result in the increase in the demand for these products globally.
Paraffin inhibitors is expected to be the largest product segment. Paraffin content in crude oil can damage transport equipment. It helps in eradicating the effects of wax deposition during petroleum extraction, refining, and transportation.
Further key findings from the report suggest:
The oversupply of crude oil worldwide along with various geopolitical issues have led to the slump in average spot prices globally. The U.S. has made considerable amounts of investments in unconventional forms of drilling. Thus, it cannot afford to cut down their production as it would lead to a decline in the price of the finished products.
Owing to exploration activities, Europe holds huge opportunities for growth. The crude oil flow improvers market is also anticipated to gain profitability from ongoing activities in the Middle East to tap tight reserves, which will improve the declining rate of production.
The product manufacturing companies have high priority for minimizing rig time, improving the overall productivity of oil wells, and ensuring environmental amenability. New joint ventures, acquisitions, and mergers between the existing players in the market are likely to create new opportunities in the global industry.
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Regulatory standards play a vital role in this industry. Frequently changing regulatory framework is a matter of concern for the industry players across the entire value chain. Several guidelines need to be followed during the utilization and disposal of these chemicals concerning environmental factors associated with it. This offers guidance to market players regarding the licenses, sanctions, guidelines, or orders to be followed during the utilization of these products.
Grand View Research has segmented the global crude oil flow improvers market on the basis of application:
Crude Oil Flow Improvers Product Outlook (Revenue, USD Million, 2014 - 2025)
Crude Oil Flow Improvers Application Outlook (Revenue, USD Million, 2014 - 2025)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information:www.grandviewresearch.com
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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