CONTEXT – A MAJOR E&P SPEND

Production of oil and gas relies on the constant and heavy use of chemicals for flow assurance or asset integrity purposes. According to IHS, production chemicals market reached $25 billion in 2014. With an expected growth rate of approximately 4%, this means the production chemicals market will be more than $30 billion by 2019. North America constituted 66% of the world market for oilfield chemicals.

DIFFICULT TO MANAGE – LIMITED TRANSPARENCY

Historically, the R&D requirements to develop new chemical compounds have been prohibitive for small players and hence the market has been dominated by a small number of incumbents. This market concentration combined with a number of other factors such as lack of training and deep knowledge of chemicals in the oilfield has created an opaque environment for E&P operators to assess the real need for chemicals, make best decisions on treatment and dosage, and monitor the effectiveness of their chemical programs.

EMERGING INNOVATIONS

As E&P companies are looking to increase their production and continue to trim costs in the current price environment, the large chemical spend with the limited transparency is certainly on the menu.

Darcy Partners’ recent research for 20 E&P companies will uncover new innovators in the area of production chemicals who can:

A. Provide alternatives: by avoiding the use of chemicals altogether through other treatment options (coatings, EM conditioning, etc.) or introducing new chemical compounds with superior performance, cost or environmental footprint.

B. Reduce the cost of existing chemicals: by improving the transportation costs, onsite generation, direct delivery, or other new business models.

C. Optimize the use of existing chemicals: by live sensing and measurement in the field and analytical and automation solutions to optimize the type and dosage of chemicals across different assets.

We invite entrepreneurs with relevant solutions to contact us at info@darcypartners.com. We will present the results of our research at our operator forum on October 4, 2017. Our study will uncover a dozen emerging technologies ready for field testing or adoption today.

If you wish to attend the forum, please contact Hossein Rokhsari at Hossein@darcypartners.com.

Darcy Partners is a Houston-based research and advisory firm focused on the emerging oil and gas technologies.

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