Introduction to Paraffin Inhibitors
Paraffin inhibitors, also known as wax inhibitors, are the high-molecular-weight polymers which are used to prevent the precipitation of paraffin from oil. They protect against wax deposition in the production tree, subsea pipelines, and wellbore. Paraffin inhibitors have waxy structure that can co-deposit with wax crystals. As a result, they can prevent agglomeration with additional functional groups. Moreover, paraffin inhibitors modify the shape and size of wax crystals and disperse the paraffin back into the oil to ensure steady flow in the pipelines.
Market Size and Forecast
Paraffin inhibitors are used in petroleum production operations to reduce wax deposition or viscosity in the pipelines. The polymers that are present in paraffin inhibitors alter the wax crystallization process, which, in turn, change the characteristics of wax deposits. The growing advancements in oil, gas and petrochemical industries along with the rising concerns towards efficient transportation of oil are some of the factors which are anticipated to create growth opportunities for paraffin inhibitors market over the coming years. As a result, the paraffin inhibitors market is anticipated to record a significant CAGR over the forecast period, i.e., 2021-2028.
The paraffin inhibitors market is segmented by application into transportation pipelines, exploration and drilling, storage, and others. Among these segments, the transportation pipelines segment is anticipated to hold the largest market share over the forecast period on the back of increasing transportation of petrol, gas and crude oil through pipelines. Post drilling from the production wells, the crude oil or natural gas liquid is then transported through the pipelines to a refinery and once the petroleum is refined into products such as gasoline or kerosene, it is again transported through these pipelines to storage or distribution stations. With the increasing transportation of petrochemical products, the demand for paraffin inhibitors is also anticipated to increase remarkably. According to the U.S Energy Information Administration (EIA), the total petroleum exports of the United States in 2019 was 8,471,000 barrels per day.
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Growth Drivers
Rapid Expansion of Oil and Gas Industry to Propel the Market Growth
With the increasing oil exploration, drilling and production activities, there is also the growing concern regarding the precipitation of paraffins which obstructs the flow of oil in the pipelines and in the storage tanks. To solve this issue, paraffin inhibitors are used as it improves and enhances the flow of oil and reduces the oil flow downtime. With the rapid expansion of oil and gas industry, the demand for paraffin inhibitors is also anticipated to increase as they facilitate ease of production, transportation, and storage of oil in subsea and deep-water operations by preventing deposition of wax in the pipelines.
Rising Need for Easy Flow of Oil in the Pipelines to Drive the Market Growth
The naturally occurring paraffin which is present in crude oil can cause flow challenges when deposited on the walls of oil pipelines during the production, transportation and storage of oil and gas. Therefore, pipelines need versatile, high-performance paraffin inhibitors to facilitate easy flow of the oil. Moreover, paraffin inhibitors reduce the frequency of workover operations and saves operational time by improving the flow viscosity of crude oil. Such factors are anticipated to drive the growth of the global paraffin inhibitors market over the forecast period.
Restraints
Concern for Ineffectiveness of Paraffin Inhibitors
Paraffin inhibitors must be added to the crude oil before the oil cools to its cloud point and asphaltene composition in the crude oil should be determined as it can reduce the effectiveness of the paraffin inhibitor. In some cases, if the stability of colloidal asphaltene is disturbed, then the use of a paraffin inhibitor can increase the rate of paraffin deposition in a wellbore, production tree, or subsea pipelines. This factor is anticipated to hamper the growth of paraffin inhibitors market over the forecast period.
Impact of COVID-19 on Global Paraffin Inhibitors Market
The COVID-19 pandemic had a minimal impact on the oil and gas industry. Despite the increasing demand for paraffin inhibitors from the end users, the manufacturers of paraffin inhibitors couldn’t meet up the delivery requirements owing to limited operations and for the restrictions imposed by the nations worldwide to reduce the spread of the virus.
Market Segmentation
Our in-depth analysis of the paraffin inhibitors market includes the following segments:
By Type
- Crystal Modifiers
- Dispersants
- Solvents
By Application
- Transportation Pipelines
- Exploration and Drilling
- Storage
- Others
By End User
- Oil & Gas Industry
- Petroleum Industry
- Chemical Industry
- Others
By Region
On the basis of regional analysis, the paraffin inhibitors market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is anticipated to hold the largest share over the forecast period on account of increasing production and transportation of petroleum including crude oil, renewable fuels, and others. In the other statistic provided by the EIA, the total petroleum production of the United States was 18,198,000 barrels per day in 2019. Moreover, the increasing import and export of oil in the region is anticipated to create growth opportunities for paraffin inhibitors market over the coming years.
The paraffin inhibitors market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis.
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis.
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis.
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis.
Top Featured Companies Dominating the Market
- Clariant
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Dow
- Schlumberger Limited
- BASF SE
- Baker Hughes Company
- ChampionX
- Halliburton
- Croda International Plc
- Zirax Limited
- Refinery Specialties, Inc.
