Well Stimulation Materials Market size is slated to record considerable growth over the span of 2021-2027, driven by the expansion in oil and gas exploration activities across various developed and developing nations. According to EIA’s 2020 estimates, the total US crude oil and natural gas production averages to 11.283 million barrels per day and 5.175 million barrels per day, respectively. Besides, the growing demand for crude oil to cater to the production needs in diverse industries would boost the global market progression further.
A surge in the R&D investments to explore new oil and gas reserves is predicted to augment the demand for well stimulation materials worldwide as these compounds are considered to be the key ingredient in detection of natural gas and fuel products. For instance, in 2019, the U.S Department of Energy announced investing $44.5 million in technologies for recuperating unconventional oil and natural gas.
However, the global well stimulation materials market share is expected to be hindered by the over exploitation of various oil and gas reserves and subsequent environmental impact on fossil fuels.
Based on the stimulation method, hydraulic fracturing segment is touted to gain considerable returns across the overall market through 2027. It is an oil and gas well development process that is intended to create new fractures in the rock as well as increase the extent, size, and connectivity of the existing fractures.
Hydraulic fracturing generally makes use of fracking fluid including proppants and additives which are pumped into the wellbore at high rate and at a pressure that is high enough to cause the reservoir rock to fracture. The resulting fractures improve the flow of oil and/or gas to the wellbore and are kept open by the proppant post the removal of hydraulic pressure. Moreover, proppant surface treatment is known to reduce the surface tension on sand particles, enabling liquids to seep through more easily.
Geographically, well stimulation materials industry growth is anticipated to come from North America and Asia Pacific regions. North America well stimulation materials market is characterized by the ongoing oil and gas exploration activities in the region and increasing oil production across various developed countries including the US, Canada, and others. Furthermore, increasing governmental legislation pertaining to new oil and gas reserves exploration would as well bolster the regional market growth through 2027.
Asia Pacific well stimulation materials market, on the other hand, would grow at a significant rate over the forthcoming years subject to the surging domestic demand for the product in the emerging market of India and China.
Prominent companies operating in the global well stimulation materials industry are Chevron Phillips Chemical Company (Chevron U.S.A. Inc., Phillips 66 Company), Linde Group, FMC Corporation, Solvay S.A, AkzoNobel N.V., Badger Mining Corporation, U.S. SILICA, and others.
These vendors have been taking up strategic measures like mergers and acquisitions, partnerships, and product launches to gain a competitive edge in the global market.
The global well stimulation materials market has been severely affected by the outbreak of SARS-CoV-2 infection during 2020. This can be credited to the shut down in various production units, movement restrictions, and disruptions in supply chains. Besides, temporary halt in the oil and gas exploration activities worldwide has also negatively influenced the market growth.