Crude Oil Flow Improvers Market Size Forecast to Reach $2.18 Billion by 2025

Crude Oil Flow Improvers (COFI) Market size is forecast to reach $2.18 billion by 2025 after growing at a CAGR of 6% during 2020-2025. Crude oil flow improvers maintain the viscosity of crude oil during processing and transportation. Moreover, it acts as additives that deliver apt solutions in all the stages of crude oil extraction from reservoir to refinery and maximize the production. The growth of the market is expected to be driven by the high demand of crude oil flow improvers from the oil and gas industry.

Full Report Link @ https://www.industryarc.com/Report/16488/crude-oil-flow-improvers-cofi-market.html

By Type-Segment Analysis

The Paraffin inhibitors held the largest share in the crude oil flow improvers market in 2019. A paraffin inhibitor is a polymer with a high-molecular-weight injected into an oil wellbore to prevent or minimize paraffin deposition. Their effectiveness is dependent on the crude oil's composition in the wellbore. Paraffin inhibitor should be injected into the well before the crude oil cools to its cloud point. These are a major component representing up to 20%, by weight, of crude oil. Paraffin deposits are formed mainly in subsea and deep-water applications that usually take place at subzero temperatures. This creates major problems in oil production and transportation. Paraffin inhibitors help dampen the effects of paraffin (wax) deposits during crude oil extraction. They interact with paraffin’s in the petroleum liquids to restrict the formation of wax crystal, size, shape, and adhesion characteristics. These agents inhibit the paraffin deposition in the system by establishing repulsion between paraffin particles as well as between paraffin particles and the pipe surface. The growth of Paraffin inhibitors is attributed to its use during crude oil production and transportation. According to the trade map the total export of paraffin inhibitors globally in the year 2018 was 9, 74,159 tons of worth $13, 78,778. Asphaltene Inhibitors has the second largest share in the oil flow improvers market. The growth in this segment is attributed to its increasing utilization in the upstream and offshore petroleum operations. They are used to maximize the production capacity by inhibiting the blockages in the flow lines. They preserve the integrity of subsea assets like flow lines and wells and manage the throughput time and minimizing down time. Since Asphaltene inhibitors prevent precipitation, they are best applied upstream of the location where Asphaltene onset pressure occurs, typically downhole. It is usually injected on a continuous basis through a downhole capillary string. These factors will drive the growth of the market in the forecast period.

Request for Sample of the Report @ https://www.industryarc.com/pdfdownload.php?id=16488
Report Price: $ 4500 (Single User License)

By Application-Segment Analysis

Extraction held the largest share in the crude oil flow improvers market in 2019 growing at a CAGR of 5.5%. The demand for crude oil flow enhancers (COFIs) is poised to see growth due to its ability to optimize hydrocarbon production in a cost-effective manner and to help mitigate its environmental effects. Increasing global production of hydrocarbons and hydraulic fracking from excentric sources are driving the market. Extraction of heavy crude requires higher energy input. Heavy crude does not flow like light crude. In fact, its consistency is often compared to that of molasses at room temperature and it is even occasionally solid if not heated. Light crude is more expensive than heavier crude because it requires less processing and produces a slate of products with a greater percentage of value-added products, such as gasoline, diesel, and aviation fuel. Heavier, sourer crude typically sells at a discount, because it produces a greater percentage of lower value-added products with simple distillation and requires additional processing to produce lighter products. These factors will drive the growth of the market in the forecast period.

Geography- Segment Analysis

North America dominates the crude oil flow improvers market with a share of more than 38% followed by Europe and APAC. The economy of North America is mainly influenced by the economic dynamics of countries such as USA and Canada, but with growing foreign direct investment for economic development of North America, the current scenario is changing. Countries in North America are witnessing high growth in the oil and gas sector. Significant increase in production levels and extensive investments in unconventional drilling technologies, such as hydraulic fracturing and horizontal drilling, in the U.S. are driving the demand of crude oil flow improvers market in this region. However, due to the outbreak of COVID-19, a huge downfall in demand for petroleum products has been witnessed globally which results in a downfall in oil prices. Moreover, disagreement between Russia and OPEC countries related to the daily crude oil production had also resulted in a downfall in prices near to $30 per barrel. The oil industry is significantly affected due to the closedown of the aviation sector. After the outbreak of COVID-19, the countries ban passengers for traveling from most of the affected countries of Asia-Pacific and Europe, which results in the cancellation of a huge number of flights. Apart from the aviation industry, the demand for oil in other transportation services such as buses, cars, has also been decreased due to this coronavirus outbreak. As to avoid the social gathering the workforce is being allotted to do work from home and are being reinforced with the travel restrictions. These factors will hamper the growth of the market for the year 2020. The market will see a steady growth in forecast period as economic condition will stable in that period.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=16488

Driver- Crude Oil Flow Improvers (COFI) Market

High demand of crude oil across the world will drive the growth in the forecast period

High demand of crude oil across the world is expected to drive the global crude oil flow improvers’ market growth. However, other non-renewable energy resources are not capable of fulfilling the growing demand. Crude oil is one of the largest energy resources in the world; hence, it becomes essential to use and distribute crude oil in the productive and efficient way. This is a major growth factor in the global market. Crude oil flow improvers are used in the production stage and provide an optimal solution for all the three stages such as extraction, transportation, and refining. Crude oil flow improvers are used to enhance the crude oil productivity, this is a major driver for the global market. This factor will drive the growth of market in the forecast period.

Refactoring of old crude oil wells will drive the growth of the market in the forecast period

Refactoring of shale wells is a topical issue as operators can use latest technologies on old wells, thereby increasing the production without incurring costs on new wells. The functions of old or underperforming wells are stopped, and hydraulic simulation is applied for completion. The application of hydraulic simulation in horizontal shale wells is in the initial phase. In 2018, the number of horizontal wells re-fracked in the US was almost less than 1% of the total number of horizontal wells. Refactoring can lead to an increase in the demand for crude oil flow improvers during the forecast period. In 2016 there were over 50,000 existing wells in the US, which can also be fracked. This factor will drive the growth of the market in the forecast period.

Challenges- Crude Oil Flow Improvers (COFI) Market

Stringent regulations and policies will hinder the growth of the market in the forecast period

The constant push from regulatory authorities such as the Environmental Protection Agency (EPA) and Registration, Evaluation, Authorization and Restriction of Chemicals is likely to limit onshore and offshore activities, thereby hampering the growth of the global crude oil flow improvers market. The EPA amended new regulations in the Oil and Gas Extraction Effluent Guidelines and Standards (40 CFR Part 435) in 2016. The regulation contains strict guidelines and policies for wastewater discharges from production, field exploration, drilling, production, well treatment, and well completion activities. This process takes much time and resources. This factor will hinder the growth of the market in the forecast period.

Hike in the crude prices will hamper the growth of the market in the forecast period

Tremendous hike in the crude prices and global recession will hinder the growth of the market. This was on the back of a deepening slowdown in the world economy as the outbreak of novel coronavirus has spread across the globe and a price war between major oil producing countries like Saudi Arabia, Iran and Russia. This factor will hinder the growth of the market in the forecast period.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the crude oil flow improvers market. In 2019 the market of crude oil flow improvers has been consolidated by the top five players accounting for xx% of the share. Major players in the crude oil flow improvers market are Halliburton Company, Baker Hughes, Nalco Champion, BASF SE, Schlumberger, and Others.

Acquisitions/Technology Launches /Product launches

In March 2018, Dorf Ketal Chemicals India Private Limited (India), a global leader in specialty chemicals was acquired by Flowchem Technologies, LLC (U.S.). Flowchem is a specialty oilfield chemical provider having its operations based in the U.S. and across Gulf of Mexico. With the help of this acquisition Dorf Ketal has a ready channel to enter the upstream market of the U.S. The product portfolio of Flowchem in drilling and oilfield production will be combined with those of Dorf Ketal’s, hence improving the capabilities of both these entities. This acquisition will help Flowchem to extend and grow its infrastructure in North America.

Key Takeaways

North America dominates the crude oil flow improvers market owing to increasing demand from oil and gas industry.

The rising acceptance of hydraulic fracturing and horizontal drilling techniques is projected to drive the market growth in the forecast period.

Steady decline in crude oil prices and environmental concerns are expected to hamper the market growth in the forecast period.

Related Reports :

A. Biofuel Additives Market
https://www.industryarc.com/Report/11702/biofuel-additives-market.html

B. Bottled Fuel Additives Market
https://www.industryarc.com/Report/7366/Bottled-Fuel-Additives-Market-Research-Report.html

For more Chemicals and Materials Market reports @ https://www.industryarc.com/Domain/4/chemicals-materials-market-research.html

Venkat Reddy
Sales Director
Email: venkat@industryarc.com
Website: https://www.industryarc.com
Phone: (+1) 970-236-3677

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

This release was published on openPR.