United States Oil And Gas Chemicals Industry Is Anticipated To Witness High Growth Owing To Increasing Shale Gas Production

United States Oil And Gas Chemicals Industry Is Anticipated To Witness High Growth Owing To Increasing Shale Gas Production

The United States oil and gas chemicals market provides a wide range of chemicals such as methanol, ethylene, propylene, butadiene, benzene, toluene and xylene that are used in various end-use industries including consumer products, construction, automotive, healthcare and energy. Oil and gas chemicals serve as important building blocks in the production of essential materials that are used to manufacture a wide variety of everyday products. The growing shale gas production has increased the availability of key raw materials needed for producing oil and gas chemicals. Shale gas provides access to significant reserves of natural gas and natural gas liquids like ethane, propane and butane which are used as feedstock for producing chemical products.

The Global United States oil and gas chemicals market Size is estimated to be valued at US$ 5.50 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024-2031.

Key Takeaways 

Key players operating in the United States oil and gas chemicals are ExxonMobil, Chevron Corporation, Shell PLC, TotalEnergies SE, Baker Hughes and Among Others. These key players are focusing on expanding their production facilities as well as engagement in partnerships and joint ventures to strengthen their geographic footprint in the United States.

The market provides ample growth opportunities for manufacturers in sectors such as construction, automotive, packaging and healthcare industries where oil and gas chemicals are widely used. Rising infrastructure development and investments in transportation and energy sectors will boost the demand for oil and gas chemicals over the coming years.

Major players in the United States oil and gas chemicals market are undertaking strategic initiatives to expand their global presence in high growth regions. The increasing investments in chemical facilities and production units across Middle East, Asia Pacific and Latin America indicates steady global expansion of the United States oil and gas chemicals industry over the forecast period.

Market Drivers

Growing demand from petrochemical industry: Oil and gas chemicals are important raw materials used in the manufacturing of various petrochemical products like polypropylene, polyethylene and aromatics. The robust growth of the United States petrochemical industry aided by increased shale gas production is a key factor driving the consumption of oil and gas chemicals.

Increasing investments in infrastructure projects: Infrastructure development activities related to construction of roads, bridges, buildings, transportation systems etc. require huge volume of construction materials where oil and gas chemicals play a vital role. Rising public and private investments towards modernizing and expanding US infrastructure will augment the market growth during the forecast period.

Market Restrain

Volatility in crude oil and natural gas prices: Fluctuations in prices of crude oil and natural gas can disrupt production economics for oil and gas chemicals especially for chemicals where feedstock costs are a major component of the overall manufacturing expenses. Uncertainty caused due to volatile energy prices act as a major challenge for business planning and capacity expansion in the industry.

Segment Analysis

The United States oil and gas chemicals market is dominated by drilling & completion fluids chemicals with more than 30% share. This is due to huge demand for drilling fluids chemicals from oil & gas exploration & production activities. Fracking and horizontal drilling techniques require a large volume of drilling & completion fluids chemicals. Downstream natural gas processing chemicals is the second largest segment accounting for over 25% share. This is because natural gas production in the US has increased significantly over the last decade due to shale gas revolution and demand for downstream natural gas processing chemicals has also increased. Production chemicals is another major segment with around 20% share owing to extensive application of production chemicals for stimulation, enhanced oil recovery and corrosion & scale inhibition in the oil & gas industry. Pipelines & refineries chemicals and cementing chemicals are other key segments in this market.

Global Analysis

North America occupies the largest share in the global oil & gas chemicals market due to presence of huge oil & gas reserves and increasing exploration & production activities in the US and Canada. The US dominates the North American as well as global market. Europe and Middle East & Africa are other major markets globally. Middle East region dominates the MEA market due to abundant oil & gas reserves and production activities in the Gulf countries. China, India and other Asia Pacific countries are emerging markets growing at a faster pace compared to other regions over the forecast period. This is because of increasing oil & gas exploration and rising refinery capacity additions in these countries. Latin America is also expected to witness decent growth owing to offshore oil & gas discoveries in Mexico and Brazil.

What Are The Key Data Covered In This United States Oil and Gas Chemicals Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the United States Oil and Gas Chemicals Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the United States Oil and Gas Chemicals Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- United States Oil and Gas Chemicals Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of United States Oil and Gas Chemicals Market vendors

FAQ’S

Q.1 What are the main factors influencing the United States Oil and Gas Chemicals market?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top United States Oil and Gas Chemicals Market companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the United States Oil and Gas Chemicals market’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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