North America Drag Reducers Market - 2022-2029

Market Overview

The North American 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. Polymers, surfactants and solid-particle suspensions are the main types of drag reducers. Drag reducers are mainly used for pipelines carrying crude oil, refined petroleum products, heavy asphaltic crude, multiphase liquids and non-potable water.

Market Dynamics

The rising oil and gas production is the major driver for the North American 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 North American drag reducers market.

Rising oil and gas production

North America has emerged as a major oil and gas producer in recent years due to the commercial exploitation of non-conventional oil sources such as fracking and tar sands. Production has also increased significantly at existing conventional oilfields. The rapid expansion in oil production has allowed countries in the region, such as U.S. and Canada, to fully meet their domestic requirements and open up for exports.

U.S. has particularly emerged as a significant exporter of oil and gas products and is positioning itself as an alternative global supplier. U.S. and Canada are the primary beneficiaries of the ongoing commercial exploitation of non-conventional oilfields. Most of these oilfields are located in remote interior central and northern areas and therefore depend upon North America's extensive oil pipeline networks to transport the crude oil to refineries across the region and ports in the Gulf of Mexico for export.

U.S and Canada are building new oil pipelines to supplement the current network and increase transportation capacity due to growing oil production. For example, in 2022, U.S. completed the Energy Transfer Ted Collins Pipeline and the Energy Transfer Cushing South Phase II, with a cumulative capacity of 330,000 bpd. 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, therefore, a key driver for the North American 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 North American drag reducers market.

COVID-19 impact analysis

The global drag reducers market was majorly impacted due to the COVID-19 pandemic. North America's oil and gas industry was deeply affected due to a major slump in demand. The major cause of a decline in demand was the reduction in fuel usage by the transportation sector as individuals and businesses drastically cut down on non-essential travel to comply with governmental restrictions.

The initial phase of the pandemic led to a sharp decrease in demand for fuel and petroleum products across many industries in North America. Therefore, oil and gas production was cut down due to reduced demand. The North American demand witnessed some recovery starting from mid-2021 onwards, as vaccination drives led to the lifting of pandemic restrictions. Even in the post-pandemic period, the North American oil and gas market still faces a few challenges from the aftereffects of the pandemic. The pandemic will not mar the long-term growth prospects of the North American drag reducers market.

Segment Analysis

The North American drag reducers market is segmented into product, application, end-user and country. The North American 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 North American oil and gas industry is engaged in producing, refining, distributing, transporting and marketing oil and gas products. Oil and gas production in North America mainly occurs in the major offshore oilfields in the Gulf of Mexico. The crude oil is then transported to onshore facilities for storage, refining and distribution through underwater pipelines.

In recent years with the new technology advances, the exploitation of unconventional shale and tar sand-based oil reserves has increased considerably in U.S. and Canada. Most of these oilfields are located in remote interior areas and therefore require extensive pipelines for transporting crude oil to refineries for processing and ports for export. The extensive usage of fracking and exploitation of shale oil reserves has also augmented the growth of the natural gas industry in North America.

U.S. has become a major producer of natural gas and liquified natural gas (LNG) and is fast becoming a major global exporter. Natural gas products and LNG are transported mainly through specialized pipelines. Due to their critical nature, drag reducers are widely used by the oil and gas industry to maintain the flow capacity of pipelines. The use of drag reducers by the oil and gas industry is likely to increase in the upcoming years due to a sustained increase in oil and gas production.

Geographical Analysis

U.S. is a high-income, developed, industrialized country with the largest economy globally. It is a primary hub of global trade and commerce, with many global industries located in the country. U.S. population leads a high-quality modern lifestyle and generates a significant energy demand.

U.S. has significantly increased oil and gas production by expanding production at existing fields and developing new unconventional oil sources. For example, in September 2022, oil production surged to 2.3 million barrels per day (bpd), the highest production rate since March 2020. The oil and gas industry uses pipelines for transporting crude oil and refined petroleum products.

U.S. also has a well-developed chemicals and petrochemicals industry. Although countries in Asia-Pacific, such as China and India, have become leading producers of petrochemicals, U.S. still retains a significant production capacity. Pipelines are used in the chemical and petrochemical industries for transporting feedstock materials, intermediates and finished products in liquid form.

U.S. also has an extensive network of pipelines to transport water for non-potable applications. The major industries of U.S. generate significant water demand for industrial processes. Furthermore, cities and urban areas have extensive sewage pipelines for transporting sewage and wastewater to treatment plants. U.S. drag reducers market is expected to experience steady growth in the upcoming years.

North America Drag Reducers Market Competitive Landscape

The North American 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 North American 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.

Product Portfolio

• FL ULTIMA 91000 is Baker Hughes Company's drag-reducing agent designed for pipelines carrying heavy asphaltenic crude oil. It is composed of high-density polymer molecules that alter the rheological properties of heavy crude oil. Furthermore, the drag reducer does not chemically react with the crude oil.

Why Purchase the Report?

• Visualize the composition of the North American drag reducers market segmentation by type, product, composition and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the drag reducers market by analyzing trends and co-development deals.
• Excel data sheet with thousands of North American drag reducers market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Application mapping in excel for the critical product of all major market players

The global drag reducers market report would provide approximately 47 market data tables, 47 figures and 180 pages.

Target Audience 2022

• Oilfield Service Providers
• Oil and Gas Companies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals