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Oilfield Chemicals: Growth Continues Despite Natural Gas Glut

7:54 AM MDT | July 11, 2012 | —Vincent Valk

Cartmell: Rise in oil production fuels demand. The low cost of natural gas is leading to reductions in drilling, at least in North America, and it is putting a near-term damper on growth in the oilfield chemicals sector, says Ray Will, analyst at IHS Chemical. IHS expects consumption of oilfield chemicals to continue to grow, but the rate of growth will slow due to gas oversupply and associated reduced drilling. Oilfield chemicals consumption is forecast to increase an average of 3.5%/year through 2015, IHS says. “We have had an enormous burst of activity...

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