Demulsifier Market – Expected increase in crude oil production post COVID-19 pandemic

 According to the market research report "Demulsifier Market by Type (Oil Soluble, Water- Soluble), Application (Crude Oil Production, Petro Refineries, Lubricant Manufacturing Process, Oil-based Power Plants, Sludge Oil Treatment Process), Region - Global Forecast to 2025", The demulsifier market is projected to reach USD 2.6 billion by 2025 from USD 2.1 billion in 2020, at a CAGR of 4.0%.

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An increase in crude oil production after the end of the COVID-19 pandemic as a result of the growth in demand for energy and oil-related products is expected to drive the market during the forecast period. However, stringent environmental regulations and geopolitical issues in the Middle East region are the factors restraining the market. The discovery of new oilfields, aging oil reservoirs, and increasing demand for green demulsifiers are expected to provide high growth opportunities to manufacturers.

The demulsifier market is segmented by type into oil soluble and water soluble. Oil soluble is the widely used type and is expected to register the higher CAGR in the global demulsifier market. The factors driving the market in the oil soluble segment are its superior properties and better solubility in oil, which enables enhanced separation of oil and water.

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The Middle East is the largest market, followed by North America and Europe. An increase in crude oil production post COVID-19 pandemic is expected to drive the market. Stringent environmental regulations and geopolitical issues in the Middle East region are the factors restraining the market growth. The discovery of new oilfields, an increase in aging oil reservoirs, and increasing demand for green demulsifiers are expected to provide high growth opportunities to manufacturers.

Baker Hughes Incorporated (US), Clariant (Switzerland), The Dow Chemical Company (US), Croda International (US), Ecolab Inc. (US), Halliburton (US), Schlumberger Limited (US), BASF SE (Germany), Nouryon (Netherlands), and Momentive Performance Materials (US) are the major players in this market.

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Baker Hughes (US) is focusing on new product development to strengthen its product portfolio and to be able to cater to the specific needs of its customers. For instance, Baker Hughes launched the Tretolite Snap, which is a fluid separation technology. This technology includes demulsification and water clarification, which assist the operator in sustaining dry oil and good water quality without limiting the production. The company is striving to take initiatives in terms of innovation and development of new technologies to maintain a competitive edge in the market.

Clariant is strongly focusing on divestment strategy by divesting its masterbatch and pigments business units. The divestment strategy will help the company focus on its core business areas, including care chemicals, natural resources, and catalysis. The company continues to focus on innovation and sustainability, portfolio management, and development of its existing core business areas. It is strengthening its product portfolio in existing and adjacent markets through innovative and cost-effective investments. The company is intensifying its growth by strengthening its market presence in Asia and North America, which hold significant growth potential. The company is also aiming to become a leading solution provider and preferred partner for customers through geographical expansion, diversification of customer base, and new business developments.

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