PUBLISHER: DataM Intelligence | PRODUCT CODE: 1208654
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1208654
The global drag reducers market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Drag reducers are additives used in pipelines to reduce turbulence and increase laminar flow. Drag reducers are used to increase pipeline capacity. Drag reducers are mainly used for pipelines carrying crude oil, refined petroleum products, heavy asphaltic crude, multiphase liquids and non-potable water. Drag reducers are added in a concentration of a few parts per million to help reduce turbulence inside the pipeline.
The drag reducers interact with the oil and reduce its contact with the pipeline walls, thereby reducing turbulence. Polymer-based drag reducers are highly susceptible to degradation; therefore, they are added after pumps and turn points in a pipeline, where pressures and temperatures can be high. Polymers, surfactants and solid-particle suspensions are the main types of drag reducers.
The rising oil and gas production is the major driver for the global drag reducers market. The growing concerns about the environmental impact of the oil and gas industry are a key factor in limiting the growth of the global drag reducers market.
Rising global oil and gas production
Global demand for oil and gas has increased due to the rapid economic development of Asia-Pacific. Global oil and gas production has also increased considerably in recent years due to the expansion of production at existing sites and the commercial exploitation of new offshore reserves. The commercial development of offshore sites has allowed countries such as Guyana and Mozambique to become major oil and gas exporters.
Oil and gas pipelines are crucial for transporting crude and refined petroleum products. Pipeline infrastructure is crucial for transporting crude oil from offshore installations to onshore facilities for storage and refining. Furthermore, natural gas is primarily transported using pipelines. Liquified natural gas (LNG) is transported from specialized pipelines to storage tanks.
Many countries are building new oil pipelines to supplement the current network and increase transportation capacity due to growing oil and gas production from new sites. For example, Tanzania and Uganda are constructing the East African Crude Oil Pipeline (EACOP), a 1,444 km pipeline to carry crude oil from the Tanga port of Tanzania to oilfields in Uganda. Drag reducers are used extensively in oil and gas pipelines to reduce turbulence and increase laminar flow, thereby improving the pipeline's carrying capacity. Increasing oil and gas production is a key driver for the global drag reducers market.
Growing concerns about the environmental impact of the oil and gas industry
The oil and gas industry has an extremely detrimental impact on the environment. Oil spills and accidents have contributed to the contamination of large tracts of land. Furthermore, accidents at offshore oil and gas installations have significantly degraded the marine environment from oil spills. Therefore, opposition to the oil and gas industry has been increasing considerably in recent years.
Opposition to new pipeline projects is also increasing considerably. Underground oil and gas pipelines create significant risks such as soil erosion, tilling and contamination of underground water sources. Many oil and gas companies have curtailed capital investment in new projects due to rising opposition from environmental activists and stringent government regulations. Growing concerns about the environmental impact of the oil and gas industry are a major challenge for the growth of the global drag reducers market.
COVID-19 impact analysis
The global drag reducers market witnessed major impacts due to the COVID-19 pandemic. The oil and gas industry was deeply affected due to a major demand slump and a crash in global oil prices. Individuals and businesses drastically cut back on non-essential travel as many governments imposed stringent lockdowns and other restrictions to curb the pandemic's spread.
The initial period of the pandemic led to a sharp decrease in demand for fuel and petroleum products across many industries globally. Therefore, oil and gas production was cut down due to reduced demand. The global demand started witnessing some signs of recovery starting from mid-2021 onwards, as vaccination drivers progressed in major countries. COVID-19 cases fell and governments started lifting pandemic restrictions.
The ongoing recovery in global economic activity is expected to be conducive to the growth of the drag reducers market. However, even in the post-pandemic period, the global market still faces a few challenges from supply chain disruptions caused by the pandemic. The pandemic will not damage the long-term growth prospects of the global drag reducers market.
The global drag reducers market is segmented into product, application, end-user and country. The global drag reducers market by end-users is further segmented into oil and gas, chemicals and petrochemicals, energy and power, agriculture and others. Oil and gas are leading within this segmentation since it has the largest applications for drag reducers.
The global oil and gas industry is engaged in producing, refining, distributing, transporting and marketing oil and gas products. Oil and gas production globally mainly occurs in the onshore oilfields of the middle east and the various offshore oilfields located in various regions. The crude oil produced in offshore fields is transported to onshore facilities for storage, refining and distribution through underwater pipelines.
North America is a major producer and exporter of oil and gas. In recent years with the new technology advances, the exploitation of unconventional shale and tar sand-based oil reserves has increased considerably in North America. Most of these oilfields are located in interior areas of the region and therefore require extensive pipelines for transporting crude oil to refineries for processing and ports for export.
Middle East and Africa have significantly increased their oil and gas production by expanding production at existing fields and developing new offshore oilfields. For example, Angola and Mozambique are currently exploiting new offshore oil deposits. The oil and gas industry uses pipelines for transporting crude oil and refined petroleum products.
Asia-Pacific has a well-developed chemicals and petrochemicals industry. Pipelines are used in the chemical and petrochemical industries for transporting feedstock materials, intermediates and finished products in liquid form. The global drag reducers market is expected to experience steady growth in the upcoming years.
Global Drag Reducers Market Competitive Landscape
The global drag reducers market is competitive due to various drag-reducing agents for different applications. Some major players contributing to growth in the market are Baker Hughes Company, Flowchem, Innospec, The Lubrizol Corporation, NuGenTec, Oil Flux Americas, Sino Oil King Shine Chemical Co Ltd, Superchem Technology, The Zoranoc Oilfield Chemical and China National Petroleum Corporation. The major players in the global market adopt strategies such as expanding production capacity, patenting new formulations and forming collaborative partnerships to contribute to the growth of the industry.
Baker Hughes Company
Overview: Baker Hughes Company is a multinational U.S.-based oilfield services company. The company mainly specializes in formation evaluation, oil drilling, completion, production and reservoir consulting services. Baker Hughes Company also designs and manufactures turbomachinery for the oil and gas industry, including steam and gas turbines, axial and rotary compressors, centrifugal pumps, gearbox couplings and heat exchangers. The company also provides analytical, process optimization, measurement, testing and software services for the oil and gas industry. Baker Hughes Company was founded in 1907 and is headquartered in Houston, Texas, U.S.
The global drag reducers market report would provide approximately 57 market data tables, 58 figures and 210 pages.
Target Audience 2022
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