Paraffin Inhibitors Market Analysis

Paraffin Inhibitors Market Analysis

EVA acrylate copolymers are blends of polyacrylate and ethylene vinyl acetate and the segment generated over USD 200 million in 2020 towards paraffin inhibitors market share. The product is available in both liquid & solid forms and possesses a solid content of more than 50%. It can be used as a wax inhibitor and pour point depressant owing to its excellent performance and ability to drop pour point up to -5ºC. Growing oil & gas production across the globe is expected to increase segment growth over the forecast timeframe.
 

The upstream segment will hold around 70% share and is attributed to higher product consumption in exploration & production activities of crude oil. Global oil consumption is increasing at a steady rate, which is creating a need for crude oil and natural gas capacity expansion.
 

Emerging countries are highly dependent on conventional resources to meet their domestic demand, which is a key reason behind the high share of conventional onshore oil production in the global market. Such trends will propel demand for additive solutions across exploration & production activities of the oil & gas sector, which will further complement paraffin inhibitors market growth.

The offshore application will witness around 5% CAGR in paraffin inhibitors market size. This can be attributed to growing investments for offshore oilfield projects across the globe. The short-term break-even cycle of offshore projects will form the basis for their development in emerging countries over the coming years. The deep offshore is estimated to contain more than 300 billion barrels of world liquid hydrocarbon resources, which is further driving oil & gas companies to explore offshore areas.

In 2020, the Middle East & Africa region accounted for over 35% share in paraffin inhibitors market, which is attributed to rising investments from major oil & gas companies in the region. Major countries including Saudi Arabia, the UAE, Qatar, & Iraq are expected to witness tremendous growth in oil production in the coming years. The region has a vast amount of oil reserves, which account for the major share in GDP.
 

For instance, Saudi Arabia oil & gas production accounts for more than 50% of its GDP and around 70% of export earnings. Furthermore, major companies are planning to invest in the Middle East & Africa oil & gas sector. For instance, BP Plc has announced major projects in the Middle East, which are related to oil exploration and production in 2020.
 

The Latin American region is also expected to showcase a promising scenario. The oil production in the region is dominated by Venezuela and Brazil, accounting for around half of the regional oil production output. Venezuela has been Latin America’s largest oil producer in the past and held more than 18% of the global oil reserves. However, the country faced significant challenges from political and economic instability, which further dropped oil production in Venezuela from 3.3 million barrels per day in 2005 to 2.4 million barrels per day in 2016.
 

Furthermore, the region is expected to see huge upstream investments from major oil producers over the coming years, which may drive the paraffin inhibitors market sales by 2027. For instance, oil & gas companies invested approximately USD 8.1 billion from 2015 to 2019 in offshore exploration & development activities in Guyana.