Oilfield stimulation chemicals are used to enhance oil and gas extraction from unconventional reservoirs such as shale formations. These chemicals help in increasing the permeability of the target formation by cracking or etching the rock and opening up existing pores and cracks. The commonly used stimulation chemicals include acids, biocides, breakers, scale inhibitors, and others which play a vital role in increasing production from mature fields.
The oilfield stimulation chemicals market is estimated to be valued at US$ 4.27 Bn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights
Market key trends: One of the key trends spurring growth in the oilfield stimulation chemicals market is increasing shale gas activities across regions. Shale gas formations produce more with sophisticated stimulation techniques such as hydraulic fracturing which requires a considerable amount of stimulation chemicals. As per the International Energy Agency, the share of natural gas from shale and tight resources has increased by over 600% from 2000 to 2018. A surge in activities around shale exploration and production will augment the demand for stimulation chemicals over the forecast period. Moreover, the shifting focus towards increasing production from mature oilfields through redevelopment and enhanced oil recovery techniques will further support market growth.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the oilfield stimulation chemicals market is moderate. High initial capital investment requirements, the need for specialized RD capabilities and economies of scale pose barriers for new players.
Bargaining power of buyers: The bargaining power of buyers in the oilfield stimulation chemicals market is high. The presence of many regional and global players provides buyers with significant bargaining power over prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials for stimulation chemicals like acids, hydrochloric acid are commoditized and available from numerous suppliers globally.
Threat of new substitutes: The threat of new substitutes is low as oilfield stimulation chemicals have few substitutes for maximizing oil and gas production from reservoirs.
Competitive rivalry: High as major players compete on product qualities, technical expertise, prices and production capacities.