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Complexities Presented by the Pre-salt Layer Boost the Use of Chemicals in Oil Exploration in Brazil, Finds Frost & Sullivan


News provided by

Frost & Sullivan

14 Nov, 2012, 12:53 GMT

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- High-performing chemicals vital for offshore oil exploration and production

SAO PAULO, Nov. 14, 2012 /PRNewswire/ -- Pre-salt represents a new technological frontier in the exploration and production of oil and gas. Oil exploration at this layer throws up numerous challenges such as high temperature and pressure, large amounts of carbon dioxide in the fluid, and risk of environmental damage. Chemicals that can aid exploration in these extreme conditions will find considerable uptake among oil and gas companies. The most popular type of chemicals will be corrosion inhibitors, antifoams, and those that offer thermal resistance, low toxicity, and a better environmental profile.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Impacts of Oil and Gas Industry Growth in the Brazilian Chemicals Market, finds that the market earned revenues of $82.2 million in 2011 due to the increasing number of drilled wells, proved reserves and oil and gas production in the country.

Brazil is expected to be the eighth largest oil and gas producer in the world by 2020 and the fastest growing oil producer outside of the Organization of the Petroleum Exporting Countries (OPEC) till 2030. The country has identified new wells and revived old ones to enhance the domestic output, which has, in turn, augmented the demand for chemicals.

Brazil is the global leader in the research and development of offshore exploration and has encouraged many companies to establish research bases in the country.

"Brazil provides credit facilities to finance projects related to exploration and production of oil and gas," said Frost & Sullivan Research Analyst Mariana Guercia. "The number of mergers and acquisitions in the industry testifies to the attractiveness of this business, which attracts further investments that ripple into the chemicals market."

Regulations stipulating the percentage of local content have also encouraged the use of domestically produced chemicals. However, the market is pegged back by the high costs of chemicals. The application of these chemicals in the sea, which is an aggressive environment, is largely responsible for their heavy price tags. Gas production and ultra-deep water exploration are relatively new activities in Brazil and require improved chemical solutions.

Besides its natural applications, chemicals used in the sea must ensure life optimization, transportation, charges resistance, and security for people and the environment alike. As these demands will considerably raise product costs, chemicals manufacturers will have to strategize to lower the costs of manufacturing to make them affordable.

"One way to minimize logistics costs is to install the chemical production units near the main Brazilian oil and gas extraction and production areas," noted Guercia. "Another solution is to develop multifunctional products that serve more than one application, as it improves the cost efficiency and thereby, adoption rates."

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Impacts of Oil and Gas Industry Growth in the Brazilian Chemicals Market is part of the Market Insights – Chemicals Growth Partnership Services program, which also includes research in the following areas: Food Grade Phosphoric Acid Market, North American Flexible Packaging Market, Strategic Analysis of the Bioplastics Market in Brazil, and Impacts of the Oil & Gas Industry Growth in the Brazilian Chemicals Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Impacts of Oil and Gas Industry Growth in the Brazilian Chemicals Market
9833-39

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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