Baker Hughes is one of the prominent players in the Saudi oilfield chemicals market

Baker Hughes is one of the prominent players in the Saudi oilfield chemicals market

Bright future for oilfield chemicals

September 2015

Saudi Arabia's oilfield chemicals markets is set to exceed $960 million by 2020, a research report says.

The figure is attainable thanks to rising oil and gas production in the kingdom and an anticipated increase in the exploration of shale gas deposits, said a TechSci Research report titled, “Saudi Arabia Oilfield Chemicals Market Forecast & Opportunities, 2020.”

TechSci report is a global market research and consultancy company.

The decline in crude oil prices has increased focus towards the production of natural gas in the country.

Growth in non-associated gas production from offshore fields, in addition to exploration of shale gas deposits in the Eastern Province, is offering lucrative opportunities for oilfield chemicals manufacturers, according to the report.

The kingdom’s growing focus to become a net exporter of natural gas instead of a net importer is expected to boost the oilfield chemicals market there in the coming years.

“Saudi Arabia is home to 100 major oil and gas fields, of which 8 oilfields produce more than 50 per cent of crude oil every year,” said Karan Chechi, research director, TechSci Research.

“Most of these large-capacity oilfields lie in the Eastern Province of the country, due to which the province continues to dominate the oilfield chemicals market in terms of revenue contribution. The Saudi Arabia oilfield chemicals market is highly consolidated with major players like Baker Hughes, Nalco Champion and REDA Oilfield, collectively accounting for more than two-thirds of the market revenues in 2014,” he added.

The report analyses the future growth potential of the oilfield chemicals market in Saudi Arabia, and provides statistics and information on market size, share and trends.

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