LATAM Oilfield Chemicals Market Size (2024 - 2029)

The Latin America oilfield chemicals market is experiencing growth driven by increasing offshore activities, particularly in South America, with significant contributions from Brazil. The market's expansion is supported by improved drilling performance and rising oil and gas demand, following a downturn during the Covid pandemic. However, economic challenges in Venezuela pose a potential obstacle to this growth. The region's potential for new oil and gas discoveries presents future opportunities, further influencing the market's trajectory.

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Market Size of LATAM Oilfield Chemicals Industry

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LATAM Oilfield Chemicals market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 2.00 %
Market Concentration Low

Major Players

LATAM Oilfield Chemicals market Major Players

*Disclaimer: Major Players sorted in no particular order

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LATAM Oilfield Chemicals Market Analysis

The Latin America oilfield chemicals market is expected to reach USD 2,800 million by the end of this year and is projected to register a CAGR greater than 2% during the forecast period.

  • Following an unusually low level of activity in 2020 due to the Covid pandemic, drilling outside the United States increased at an 8.0% rate in 2021, with major contributions from Latin America. However, in 2022, the drilling performance improved with the growing oil and gas demand and significantly improved commodity prices.
  • The major factors driving the market's growth are the increasing offshore activities in South America. Nine potential commercial discoveries were made in Guyana and Suriname, accounting for 21% of the total discovered resources.
  • On the other hand, the declining economy of Venezuela is expected to hinder the market's growth.
  • The potential discovery of oil and gas reserves in the region is expected to be a future opportunity for the studied market.
  • Brazil is leading in oil and gas exploration activities in Latin America and is expected to drive the demand for oilfield chemicals.

LATAM Oilfield Chemicals Industry Segmentation

Oilfield chemicals either enable or improve the efficiency of oil and gas production. Oilfield chemicals, such as well stimulation and other additives, play an important role in increasing the productivity of existing (green) and mature (brown) fields. 

The LATAM Oilfield Chemicals market is segmented by chemical type, application, and geography. By chemical type, the market is segmented into biocide, corrosion and scale inhibitor, demulsifier, polymer, surfactant, and other chemical types. By application, the market is segmented into drilling and cementing, enhanced oil recovery, production, well stimulation, workover, and completion. The report also covers the market sizes and forecasts in 6 major countries across Latin America (Brazil, Argentina, Mexico, Columbia, Peru, Ecuador, and the Rest of Latin America). 

For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Chemical Type
Biocide
Corrosion and Scale Inhibitor
Demulsifier
Polymer
Surfactant
Other Chemical Types
Application
Drilling and Cementing
Enhanced Oil Recovery
Production
Well Stimulation
Workover and Completion
Geography
Mexico
Brazil
Colombia
Argentina
Peru
Ecuador
Rest of Latin America (Guyana, Venezuela)
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LATAM Oilfield Chemicals Market Size Summary

The Latin America oilfield chemicals market is poised for growth, driven by increasing offshore activities and exploration in countries like Brazil, Guyana, and Suriname. The market is experiencing a resurgence following the pandemic-induced slowdown, with significant contributions from deep-water drilling activities. Brazil, in particular, is at the forefront of oil and gas exploration in the region, with numerous projects and investments expected to bolster the demand for oilfield chemicals. The discovery of new oil and gas reserves, along with technological advancements in drilling and production, presents substantial opportunities for market expansion. However, economic challenges in Venezuela pose potential hindrances to growth.

The market landscape is characterized by a fragmented structure with numerous key players such as Ecolab Inc., Baker Hughes, Halliburton, Exxon Mobil Corporation, and Schlumberger Limited. These companies are actively expanding their operations and capabilities to meet the rising demand for oilfield chemicals. The Brazilian government's initiatives, including multi-year bid rounds and regulatory changes, are expected to attract more private investments, further driving market growth. The ongoing developments in offshore drilling technologies and the strategic partnerships among major industry players are anticipated to enhance the market's prospects in the coming years.

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LATAM Oilfield Chemicals Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Increasing Offshore activities in Brazil, Mexico & Argentina

    2. 1.2 Restraints

      1. 1.2.1 Downfall of Venezuela Economy

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Value)

    1. 2.1 Chemical Type

      1. 2.1.1 Biocide

      2. 2.1.2 Corrosion and Scale Inhibitor

      3. 2.1.3 Demulsifier

      4. 2.1.4 Polymer

      5. 2.1.5 Surfactant

      6. 2.1.6 Other Chemical Types

    2. 2.2 Application

      1. 2.2.1 Drilling and Cementing

      2. 2.2.2 Enhanced Oil Recovery

      3. 2.2.3 Production

      4. 2.2.4 Well Stimulation

      5. 2.2.5 Workover and Completion

    3. 2.3 Geography

      1. 2.3.1 Mexico

      2. 2.3.2 Brazil

      3. 2.3.3 Colombia

      4. 2.3.4 Argentina

      5. 2.3.5 Peru

      6. 2.3.6 Ecuador

      7. 2.3.7 Rest of Latin America (Guyana, Venezuela)

LATAM Oilfield Chemicals Market Size FAQs

The LATAM Oilfield Chemicals Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)

Halliburton, Schlumberger Limited, Ecolab Inc., Exxon Mobil Corporation and Baker Hughes Company are the major companies operating in the LATAM Oilfield Chemicals Market.

LATAM Oilfield Chemicals Market Report Snapshots

LATAM Oilfield Chemicals Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)