Market Trends of Qatar Oilfield Chemicals Industry
This section covers the major market trends shaping the Qatar Oilfield Chemicals Market according to our research experts:
Increasing Demand for Oil and Gas Production
- An oil field is a region with abundant oil wells extracting petroleum(crude oil) from subterranean. The increasing demand for Oilfield chemicals used in all the stages of the oil and gas industry, including initial well drilling and production of oil and gas, and all the aspects of maintenance of oilfields, such as transportation and storage of oil and natural gas in geological conditions (in salt caverns or depleted reservoirs) is expected to drive the market studied.
- Furthermore, various projects on oil extraction started in the country, including drilling and cementing as the initial stages, thereby increasing the demand for oilfield chemicals in the market segment. Increasing oil and gas capacity and new refineries in Qatar strengthened petrochemicals capacity and improved its ties between Qatar and the rest of the region.
- In April 2019, Qatar Petroleum offered a tender package for engineering, procurement, and construction (EPC) of the four LNG mega-trains, part of its North field expansion project. Through this project, Qatar Petroleum plans to expand Qatar's LNG production to 110 million metric ton per year by 2024, from the current production of 77 million metric ton per year.
- Qatar's giant oil field is worth about USD 635.2 million for the North Oil Company (NOC) platform, the Al-Shaheen field operator.
- Additionally, the rise in deep-water drilling activities and increasing demand for oil for various industrial applications is escalating the growth of the specialty oilfield chemicals market.
- However, with the ease of lockdown, trade restrictions, and government support, the demand for oil from end-user industries is expected to witness a massive surge in demand, which is anticipated to result in increased oil production activities and, thus, fuel the demand for oilfield chemicals. Such factors are expected to drive the demand for the oilfield chemical market in the country in the oil and gas industry in the future.
Understand The Key Trends Shaping This Market
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Increasing Demand from Drilling and Cementing Application
- Drilling is the key application in the oil upstream sector, in which various chemicals are being consumed along with drilling mud and others. Various oilfield chemicals are used to stabilize temperature and prevent contaminated products from entering the drilling fluid system. They are also added as additives to the drilling fluids used to maintain the hydrostatic pressure and clear the wellbore from cuttings.
- Furthermore, drilling mud composition directly contributes to the condition and life of an oil or gas well. Various additive chemicals are added to oil- and water-based drilling muds to enhance the performance of mud systems, which will further minimize the non-production time and improve the well performance which in turn is boosting the demand for oilfield chemicals in the forecast period.
- Specialty polymers and surfactants are being used in drilling fluids. These additives are formulated, such that to offer water- and oil-based drilling fluids with satisfactory rheology, suspension, fluids loss control, hole cleaning, and other essential functions.
- Apart from polymers and surfactants, biocides, lubricants, corrosion inhibitors, dispersants, clay controlling agents, bentonite modifiers, foamers, flocculants & coagulants, and other chemicals are also witnessing significant demand from drilling activities application.
- In August 2021, Vantage Drilling has announced that the company has been awarded 3-year contracts for two of its jack-up drilling rigs to work offshore Qatar, starting in the first quarter of 2022. Moreover, the jack-ups Sapphire Driller and Aquamarine Driller will begin work offshore Qatar in February and March 2022.
- In July 2021, North Oil Company has awarded Valaris, a United States-based company, with a contract for deploying its Valaris JU-110 rig at the offshore Al-Shaheen oil field. The contract is for three years from Q4 of 2021.
- Various cementing additive chemicals are employed, including, cement retarders, thixotropic agents, spacer surfactants, gas migration agents, fluid loss additives, strength enhancement additives, dispersants, accelerators, defoamers, extenders, loss circulation materials, free water control additives, suspension additives, and other chemicals.
- Hence, such factors are expected to drive the demand for the oilfield chemical market in the country from drilling and cementing application in the future.
