Rising oil and gas production in Saudi Arabia, along with anticipated increase in the exploration of shale gas deposits, are likely to drive the kingdom’s oilfield chemicals market to surpass $960 million by 2020, a report said.

Growth in the demand for natural gas in the domestic market is driving natural gas production in Saudi Arabia, explained the report, "Saudi Arabia Oilfield Chemicals Market Forecast & Opportunities, 2020” by TechSci Research, a global market research and consulting company.

Further, the decline in crude oil prices has also increased focus towards the production of natural gas in the country. Growth in non-associated gas production from offshore fields, in addition to exploration of shale gas deposits in eastern provinces of Saudi Arabia, is offering lucrative opportunities for oilfield chemicals manufacturers, according to the report.

The country's increasing focus to become a net exporter of natural gas instead of a net importer is expected to boost the oilfield chemicals market in Saudi Arabia in the coming years.

"Saudi Arabia is home to 100 major oil and gas fields, of which 8 oilfields produce more than 50 per cent of crude oil every year,” said Karan Chechi, research director, with TechSci Research.

“Most of these large-capacity oilfields lie in the eastern province of the country, due to which the eastern province continues to dominate the oilfield chemicals market in terms of revenue contribution. Saudi Arabia oilfield chemicals market is highly consolidated with major players like Baker Hughes, Nalco Champion and REDA Oilfield, collectively accounting for more than two-thirds of the market revenues in 2014,” he added.

The report analyses the future growth potential of oilfield chemicals market in Saudi Arabia, and provides statistics and information on market size, share and trends. – TradeArabia News Service