The oil and gas chemicals industry in the United States involves a wide range of chemicals that are used in the extraction and refining of petroleum and natural gas. Some of the major chemicals produced are methanol, ethylene, propylene, butadiene and benzene which are key raw materials used in the manufacturing of petrochemicals, plastics, synthetic rubbers and other products. Growing demand for petrochemicals from industries such as construction and packaging is propelling the growth of the oil and gas chemicals market in the country.
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. ExxonMobil is the largest oil company in the United States with significant refining and petrochemical operations across the country.
The growing demand for petrochemical products from major end-use industries such as construction, automotive and packaging is fueling the market for oil and gas chemicals in the United States. Rapid urbanization and infrastructure growth is driving the consumption of plastics, synthetic rubbers and other petrochemical derivatives.
Technological advancements in extraction and refining processes have enabled greater recoveries of valuable oil and gas chemicals from upstream operations. The integration of digital solutions for optimization of plant operations and productivity is another area witnessing significant innovation.
Market Trends
The shift towards low-carbon operations is a major trend in the United States oil and gas industry. Companies are investing in carbon capture utilization and storage technologies to reduce greenhouse gas emissions from refineries and chemical plants. Transition towards renewables is also gaining momentum through sustainable fuel initiatives.
Consolidation of industry players to leverage synergies across the integrated value chain from upstream to petrochemicals is another defining trend. Major deals allow companies to derive greater long-term value from oil and gas reserves and long-term offtake agreements.
Market Opportunities
Rising exports of ethylene, propylene and other petrochemical intermediates to Latin America and Asia present lucrative opportunities for United States oil and gas chemical companies.
Growing demand for specialty and performance chemicals from end-use sectors such as electronics, automotive and healthcare also provides major opportunities for specialty chemical producers to leverage their formulation expertise.
Impact of COVID-19 on United States Oil and Gas Chemicals market
The COVID-19 outbreak had a significant impact on the US oil and gas chemicals market. During the early months of the pandemic in 2020, stringent lockdowns and travel restrictions resulted in a steep decline in demand for oil and gas. This led to a collapse in crude oil prices as supply far exceeded consumption. The reduced activity levels across the oil and gas value chain dragged down sales of oilfield and downstream petrochemicals. Manufacturers had to curtail production and even shut down some facilities temporarily due to poor order inflows. However, downstream chemical producers that catered to essential need-based industries like pharmaceuticals and food packaging were less impacted.
As vaccination drives progressed and economic activity gradually rebounded post lockdowns, demand from refineries and petrochemical plants picked up gradually from late 2020 onwards. The easing of mobility curbs majorly boosted gasoline consumption from Q3 of 2020, boosting sales of octane boosters and oxygenates. The market recovered further in 2021 backed by economic recovery, increased infrastructure activity and higher crude oil prices, rising demand for petrochemical end-products like resins, fibers and synthetics. However, downstream chemicals demand has remained below the pre-pandemic levels so far. Going forward, the market is anticipated to recover fully by early 2023 with continued recovery in global oil demand and refined fuels consumption.
Geographical concentration of United States Oil and Gas Chemicals market
The Gulf Coast region, which includes Texas, Louisiana and parts of Mississippi is the largest market for oil and gas chemicals in the US in terms of value. This is mainly due to the high concentration of refineries and petrochemical plants located along the coastline that has led to the development of an extensive supply chain network here over the decades. Major oil and petrochemical hubs like Houston, Beaumont and Baton Rouge account for over 40% of the country's total market value. The proximity to crude export/import facilities promotes cost-efficiency for producers. Additionally, availability of workforce with requisite skills along with developed infrastructure sustain the leading position of this region.
Fastest growing geographical region
The Rocky Mountain region spanning Colorado, Utah and Wyoming has emerged as the fastest growing market for oil and gas chemicals in the US. This is owing to increased unconventional oil and gas production from shale reserves like Niobrara, Bakken and Uinta basins in this region since the last 5-7 years. Extraction of hydrocarbon resources via hydraulic fracturing requires a wide range of chemicals to facilitate drilling, hydraulic fracturing and production operations. This has provided a stimulus to the regional chemicals industry in the form of growing opportunities. Existing manufacturers have expanded production while new entrants are also entering the market to cater to the rising local demand.
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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