Global Crude Oil Flow Improvers Market Report and Forecast 2024-2032

Global Crude Oil Flow Improvers Market Size

The global crude oil flow improvers market is expected to grow at a CAGR of 4.90% in the forecast period of 2024-2032, driven by the constantly rising energy requirements.

Crude Oil Flow Improvers Market Outlook

• As per industry reports, global crude oil production increased by a record 5.4% in 2022, above its 2021 growth (+1.6%), reaching 97,698,105 barrels per day (b/d).

• The United States produced 11,910,622 b/d of crude oil in 2022, with Texas being the top producing state at 5,060,000 b/d.

• The global crude oil balance of trade showed a strong increase in EU net crude oil imports of 8.9% in 2022, with major importers being China (506), India (232.6), United States (144.9), South Korea (141) and Japan (139.7).

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Crude Oil Flow Improvers Market Growth

Crude oils are extracted from remote places through drilling and transported through pipelines. Transporting it is difficult as crude oil is viscous in property, and flow improvers are needed to maintain the temperature and consistency, so they are used as additives. The flow improvers protect the quality and state of the crude oil by working drag-reducing agents, and they are injected into the pipelines to reduce the friction.

Key drivers fuelling the crude oil flow improvers market expansion include the increasing production of crude oil worldwide, driven by the rise in unconventional sources, which necessitates the use of flow improvers to enhance transportation efficiency. The expansion of pipeline infrastructure, investments in advanced products, and the demand for energy, especially in developing nations, are also significant factors propelling the market forward.

Additionally, the emphasis on cost efficiency, technological advancements leading to improved formulations, stringent government regulations promoting the use of flow improvers for environmental compliance, and the exploration of unconventional reserves like shale and oil sands contribute to the market's growth. Moreover, the globalisation of oil trade and the focus on sustainable practices further drive the adoption of crude oil flow improvers in the industry.

Key Trends and Developments

Growing demand for paraffin and asphaltene inhibitors, shift towards hydraulic fracturing and horizontal drilling, and increasing energy requirements are shaping the crude oil flow improvers market outlook

May 2024

Indian Oil Corp (IOC) plans to invest INR 31,000 crore in FY25 for business expansion and achieving net-zero emissions. ONGC is also set to invest INR 30,800 crore in the next fiscal year, focusing on oil and gas operations. Overall, Indian oil PSUs will invest approximately INR 1.2 trillion in 2024-25 to support energy demands.

May 2024

BPCL intends to invest Rs 1.7 lakh crore over five years in core oil refining, fuel marketing, and clean energy, aiming to achieve net-zero carbon emissions by 2040. The investment will focus on expanding refining capacity, growing petrochemical business, and cleaner fuel initiatives.

May 2024

BASF has announced plans to expand the global production capacity of its Basoflux range of paraffin inhibitors at its site in Tarragona, Spain, driven by increasing demand for speciality chemicals and petroleum products. This will strengthen its market position.

Growing demand for paraffin and asphaltene inhibitors

Paraffin and asphaltene inhibitors play a crucial role in preventing the deposition of wax and asphaltene on pipelines, wellbores, and during processing, thereby improving the flow of crude oil and reducing power consumption.

Increasing energy requirements

The demand for crude oil has been rising with the rising energy requirement from the automotive industry. With the increased crude oil production rate, countries that produce it would need more flow improvers to maintain the original form.  This trend is expected to influence crude oil flow improvers market development during the forecast period.

Rising acceptance of hydraulic fracturing and horizontal drilling

Hydraulic fracturing and horizontal drilling techniques have increased the production of crude oil, leading to a higher demand for speciality products to enhance fluid flow in various stages of the petroleum value chain.

Focus on minimising rig time and ensuring environmental amenity

Market players are prioritising the minimisation of rig time and improving the overall productivity of oil wells, while ensuring environmental amenability. This trend is driven by the need to optimise operations and efficiency, reduce costs, and comply with environmental regulations.

Crude Oil Flow Improvers Market Trends

The growing demand for paraffin and asphaltene inhibitors can be attributed to the rising production of crude oil and the need to mitigate flow-related challenges in pipelines. For instance, the use of paraffin inhibitors in the Permian Basin has significantly reduced the frequency of pipeline cleaning and maintenance, resulting in cost savings for oil producers, thereby propelling crude oil flow improvers market growth.

The use of hydraulic fracturing in the Bakken Shale formation has significantly increased crude oil production, leading to a higher demand for flow improvers to manage the increased volume of crude oil being transported through pipelines. The necessity for flow improvement additives to decrease the viscosity of petroleum liquids and improve movement through pipes has increased, contributing to the growth of the market. Governments are also providing support through financial and machinery schemes, which further aids the global market for flow improvers.

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Crude Oil Flow Improvers Industry Segmentation

The EMR’s report titled “Crude Oil Flow Improvers Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Paraffin Inhibitors

• Asphaltene Inhibitors

• Scale Inhibitors

• Hydrate Inhibitors

Market Breakup by Application

• Transportation

• Extraction

• Refinery

Market Breakup by Region

• North America

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Crude Oil Flow Improvers Market Share

Flow improvers are used for extracting, transporting, and refining crude oil to meet the rising demand for petroleum products

In the extraction phase, crude oil flow improvers play a crucial role in maintaining the viscosity and flow of heavy crude oils, thereby maximising production efficiency. Products such as paraffin inhibitors to prevent wax deposition, asphaltene inhibitors to avoid agglomeration, and drag reducing agents to minimise friction and turbulence in pipelines are commonly used in this stage.

In pipeline transportation, flow improvers are essential for the efficient long-distance movement of crude oil through pipelines. They help enhance flow characteristics and prevent blockages, ensuring a smooth and uninterrupted transportation process. As per crude oil flow improvers market analysis, the segment is driven by the global expansion of pipeline infrastructure and the need to maintain viscosity and flow in challenging weather conditions.

In the refinery segment, crude oil flow improvers are added to maintain the quality and state of the crude oil, ensuring optimal processing and transportation to end users. This segment is expected to grow steadily due to the rising global consumption of petroleum products and the increasing demand for effective transportation of crude oil from production sites to refineries.

Paraffin inhibitors dominate the market as they facilitate smooth transportation of crude oil

Paraffin inhibitors are polymers that interact with paraffins in crude oil to restrict wax crystal formation and prevent deposition in pipelines. This is crucial for maintaining viscosity and ensuring smooth flow during long-distance transportation. Asphaltene inhibitors are projected to be the fastest growing segment as they are widely used in upstream and offshore operations to inhibit blockages in flow lines by preventing the aggregation and precipitation of asphaltenes. The increasing adoption of asphaltene inhibitors is driven by the need to preserve the integrity of subsea assets and manage throughput time.

According to crude oil flow improvers market report, scale inhibitors are used to control the formation of mineral scales that can build up in pipelines and processing equipment. As oil and gas reserves mature, scale buildup becomes more prevalent, driving the need for effective scale inhibitors to maintain the efficiency of crude oil production and transportation systems. Hydrate inhibitors, on the other hand, prevent the formation of gas hydrates, which can block pipelines and process equipment. Companies are focusing on developing low-dose, environmentally friendly hydrate inhibitors that substantially reduce the need for other chemical additives, lowering costs and risks.

Leading Companies in the Crude Oil Flow Improvers Market

Market players are focused on enhancing productivity, environmental compliance, strategic partnerships, global expansion, and regulatory adherence to drive innovation and sustainable growth

The Lubrizol Corporation was founded in 1928 and is headquartered in Ohio, United States. The company offers a diverse range of products and services tailored for various sectors such as lubricants, coatings, transportation, and healthcare.

BASF SE was founded in 1865 and it is a leading chemical company. Headquartered in Ludwigshafen, Germany, BASF SE operates across multiple sectors, including chemicals, plastics, performance products, agricultural solutions, and oilfield chemicals.

Schlumberger Limited was established in 1926 and has emerged as a global leader in providing technology solutions to the oil and gas industry. Headquartered in Texas, United States, the company specialises in reservoir characterisation, drilling, production, and processing technologies.

Evonik Industries AG was founded in 2007 and is headquartered in Essen, Germany. The company offers a wide array of products and solutions for industries ranging from chemicals and plastics to healthcare and energy.

Other key players in the global crude oil flow improvers market Baker Hughes Company, among others.

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Crude Oil Flow Improvers Market Analysis by Region

Middle East and Africa leads the market due to its large production levels of crude oil

The Middle East region is expected to dominate the market during the forecast period. This can be attributed to the increase in demand from countries like Saudi Arabia, Iraq, and the United Arab Emirates, which are among the largest producers of crude oil in the world. The region's dominance is further supported by the presence of many crude oil reserves, with 64.5% of the OPEC crude oil reserves accounting for 79.6% of total world reserves. Saudi Aramco's recent investment in expanding its pipeline infrastructure to increase crude oil exports highlights the region's commitment to maintaining its position as a leading oil producer. The growing use of crude oil-based final products in energy generation, automobiles, and industries is expected to increase the crude oil flow improvers market share in the region.

Meanwhile, oil and gas are some of the major sources of energy in the United States, and due to the recent Russia-Ukraine conflict, the global supply of oil has been obstructed. This has also led the United States to look for new exploration activities to meet the rising demand. Industries have started to adopt hydraulic fracture, also called fracking, and more non-traditional methods as it allows access to deeper resource pools and extract oil with natural gas instead of coal. The continued demand and adoption of non-traditional methods for crude oil have increased the need for flow improvers.

Key Highlights of the Report