during the forecast period. The major factors driving the growth of the market studied are the increasing offshore activities in Brazil, Mexico, and Argentina. - On the other hand, the declining economy of Venezuela is expected to hinder the growth of market.
New York, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "LATAM Oilfield Chemicals Market - Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05826230/?utm_source=GNW
- By product type, the corrosion and scale inhibitors segment accounted for the largest share of about 40% of the total revenue of the market.
Key Market Trends
Increasing Demand from the Drilling and Cementing Segment
- In the drilling segment, 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. The rise in the deep-water drilling activities is expected to drive the oilfield chemicals market in the future.
- The rise in the deep-water drilling activities is expected to drive the oilfield chemicals market in the future. Moreover, the strong demand for drilling segment in the Latin American market, as well as the new joint ventures and mergers among the existing big players in the market, are expected to engender huge opportunities in the LATAM oilfield chemicals market.
- Latin America is expected to have a significant share in the oilfield chemicals market, due to the increasing exploration and production activities in Brazil, Mexico, Guyana, and Argentina. The companies operating in the region are taking additional steps in technology and performance for cost-effective operations, due to tight investment budgets.
- Argentina has a vast shale formation, which is considered to one of the biggest in the world to offer tempting projects for the major oil companies. Loma Campana Field Development project in Argentina is still in the drilling and appraisal stage. It is expected that YPF, Argentina’s national integrated company will soon step-up drilling efforts to achieve full production and reach a target of 100,000 boe/d by 2024. This factor provides a huge opportunity for the drilling and cementing activities in Latin America. In this market, the conventional drilling motors are challenged, and the rotary steerable systems are needed to drill the longer wells.
- The increased exploration activities in Guyana, Brazil, Colombia, and Falkland Islands are expected to increase the drilling and the production of chemicals, resulting in higher demand for cementing chemicals. The demand for technologically advanced in cementing chemicals is expected to boost the growth of the market.
Brazil to Dominate the Market
- The oil and gas sector in Brazil continue to improve, despite weakness in the external environment. The country’s oil and gas sector has been going through the greatest transformation since the foundation of Petrobras in 1953. For the first time ever, the National Energy Policy Council (CNPE) approved a multi-year bid round calendar from 2017.
- Recently, the Brazilian government raised around USD 2.4 billion in signature bonus, under the country’s 15th round of bids for oil and gas blocks. The national oil regulator, National Agency of Petroleum, Natural Gas, and Bio-fuels (ANP), awarded 22 maritime blocks from the 47 offered.
- In 2016, the Brazilian government passed an offshore oil bill that allows greater private and foreign investments in the development of Brazil’s offshore oil blocks.
- In addition, some of the projects that are lined for the completion of the well-development phase in 2024 include Itapu (Surplus), Libra Phase 4, and lara Entorno (Surplus). All these upcoming projects are expected to drive the demand oilfield chemicals in the country.
- These reserves, coupled with advancements in offshore drilling technologies are expected to increase the domestic and foreign investment during the forecast period. In addition, the recent political on goings due to the Petrobras corruption scandal are expected to lead to changes in the regulatory policies of the oil and gas industry, paving way for more private investments in the sector. This is expected to add up to the demand for oilfield chemicals in the country.
The LATAM Oilfield Chemicals market is fragmented with the top-four players accounting for nearly 15% of the market. Some of the prominent players in the market include Ecolab Inc., Baker Hughes, Halliburton, Exxon Mobil Corporation, and Schlumberger Limited.
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