Increase In Oil Production and Exploration Activities Is Creating a Need for Oilfield Chemicals

 

Chemicals used in oil and gas extraction operations are known as oilfield chemicals. Oilfield chemicals find applications in workover & completion, production chemicals, well stimulation, drilling fluids, enhanced oil recovery, and cementing. Oilfield chemicals are used to improve the efficiency and productivity of the petroleum refining and oil drilling process and to achieve optimum performance with effective recovery. Oilfield chemicals facilitate the maintenance of a well-operated oil field, reducing the cost of delays and stops during the drilling process.

Oilfield chemicals are used at various stages during the production of the oil and gas as drilling additives, corrosion inhibitors, cementing super plasticizers, demulsifiers and dispersants, and repair systems for cementing failures. Moreover, these chemicals are also used to explore natural resources. With the increasing number of exploration activities around the world, the demand for oilfield chemicals is increasing. Moreover, these chemicals are employed to enhance certain functionalities and properties of oil wells or reservoirs.

Mexico is expecting a surge in exploration, deepwater projects accounted for the bulk of exploration investments in Mexico as the private company’s ramp-up exploration activities. Mexico resumed its exploration activities at one of its two blocks in the Gulf after being halted for a few months due to the global pandemic. Moreover, in August 2019, Japan completed exploratory drilling at the offshore Hidaka area of Hokkaido, using the Ensco 8504 drilling rig. Furthermore, in July 2020, an Offshore Company planned to start drilling projects in Germany and the Netherlands.

The need for oilfield chemicals is arising from the increase in oil production and exploration activities worldwide. Moreover, ongoing activities to meet energy demand brought petroleum crude oil wells into the production state, which in turn increases the demand for oilfield chemicals. Oilfield chemicals play an important role in the life cycle of oil well or reservoir. Furthermore, oilfield chemicals are used in downstream, midstream, and upstream operations of the oil industry.