The global Sulfonated Asphalt Market was valued at USD 328.7 Million in 2019 and is projected to reach USD 442.1 Million by 2027, expanding at a CAGR of 3.8% during the forecast period. Sulfonated asphalt is used in applications such as fluid emulsifier and drilling fluid lubricant. The demand for sulfonated asphalt is driven by the rapid growth in drilling activities and rise in government support.
Sulfonated asphalt refers to a modified sodium sulfonated compound, which is 75% solvable in water. Sulfonated asphalt is a blend of lignite, blown asphalt, caustic soda, and gilsonite. It is used as a drilling mud additive for enhanced functions such as plugging, lubrication, prevention, drag, collapse, reduction, and restraining. With the functions such as drag reduction and lubrication, sulfonated asphalt may increase the lifetime for the drill and prevent sticking in the oil- and water-based drilling fluids. Sulfonated asphalt is used to stabilize wellbores.
It acts as a filter-cake additive for oil- and water-based muds. Some of the substitutes of sulfonated asphalt are stabil hole, shaletone, barasal, surfactant-treated ground asphalt, ciround asphalt, and shale fix. Growth in drilling activities due to increasing investments in the value chain of the oil & gas industry is anticipated to boost the demand for drilling lubricants and fluids. This, in turn, is projected to fuel the sulfonated asphalt market during the forecast period. Sulfonated asphalt is bifurcated into regular sulfonated asphalt and potassium sulfonated asphalt.
Potassium sulfonated asphalt is beneficial in applications that require potassium to effectively minimalize water-induced clay swelling.
Increasing demand for energy, discovery of new oilfields, and ongoing shale gas developments are increasing drilling activities in various countries. Rising investments in the oil & gas industry is expected to fuel drilling activities. These, in turn, are expected to increase the demand for sulfonated asphalt during the forecast period owing to its utilization as a shale stabilizer for water- and oil- based drilling fluid.
Benefits Associated with Sulfonated Asphalt such as it increases in lubricity, decreases the requirement for emulsifiers for proper mixing, acts as an inhibitor of clay shale, and reduces high temperature gelation. Rising awareness about these benefits associated with sulfonated asphalt are expected to drive the market during the forecast period.
Growing government support through subsidies for oil & gas companies for increasing the production in developing countries is expected to increase the demand for sulfonated asphalt during the forecast period.
Environmental regulation addresses the environmental effects of oil & gas, which arises largely owing to the methods employed to drill gas and oil wells. Drilling horizontal and deep wells produce exceptional amounts of waste, which is normally stored in tanks or surface pits, before disposal. Governments have implemented strict environmental regulations in order to ensure proper and safe disposal of waste. Strict environmental regulations regarding the utilization and disposal of drilling fluid and waste are projected to hinder the demand for sulfonated asphalt. Environmental regulations are enforced in various countries to ensure safe dispose of waste.
Geopolitics is a study of factors such as economics, demography, and geography on the politics, especially the foreign policy of a state. Geopolitical issues between the oil producing countries over global market share have reduced the prices of oil. These issues between countries such as Saudi Arabia, Iran, Israel, and the US are expected to hinder the sulfonated asphalt market growth during the forecast period.
Shale gas is the most important unconventional gas owing to its large recoverable reserves and technological innovations. Development of shale gas in countries such as the US is owing to the factors such as underground injection wells for wastewater disposal, road infrastructure, favorable topography of most shale basins, and a history of conventional oil & gas development. Additionally, government-sponsored R&D programs improve technology and fiscal policies generated incentives for drilling shale gas. Promoting shale gas exploration to diversify energy mix, enhance energy security, and reduce energy dependency, which are expected to create opportunities in the sulfonated asphalt market.
Many oil &gas companies across the globe are introducing new capital projects in pursuit of growth. Increasing number oil & gas projects has fueled drilling activities in various countries, which in turn, is expected to drive the sulfonated asphalt market. Thus, increasing number of oil & gas projects is projected to create opportunities in the market during the forecast period.
Based on types, the sulfonated asphalt market is divided into regular sulfonated asphalt and potassium sulfonated asphalt. The regular sulfonated asphalt segment held 66.2% share of the market in 2019, as it is majorly used in oil & gas drilling operations. The potassium sulfonated asphalt segment is anticipated to expand at a CAGR of 4.1% during the forecast period. Segment growth can be attributed to increasing applications of potassium sulfonated asphalt in drilling operations to effectively minimalize water-induced clay.
In terms of applications, the sulfonated asphalt market is classified as drilling fluid emulsifier and drilling fluid lubricant. The drilling fluid emulsifier segment accounted for 71.1% share of the market in 2019 and is expected to expand at a substantial CAGR during the forecast period due to their superior emulsification properties. On the other hand, the drilling fluid lubricant segment is projected to expand at a significant pace during the forecast period due to increasing demand sulfonated asphalt in oil & gas drilling operations.
On the basis of regions, the Sulfonated Asphalt market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is a promising region of the market. The region constituted a 4.8% share of the global market in 2019. The market in this region is expected to grow due to the presence of a major manufacturer in this region and increasing shale gas exploration activities.
The market in the Asia Pacific is projected to expand at a CAGR of 4.1% during the forecast period. Increasing government initiatives to support the oil & gas industry to increase production anticipated to fuel the demand for sulfonated asphalt in this region during the forecast period.
Some frequently asked quetions about this report!
Major Manufactures Schlumberger Limited, Chevron Phillips Chemical Company LLC, and Henan Xinxiang No.7 Chemical Co.
The base year considered for the global sulfonated asphalt market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
The market is expected to witness a decrease of around 2% between 2019 and 2020 owing to the adverse impact of COVID-19 pandemic on the sulfonated asphalt market.
The demand for sulfonated asphalt is expected to continue to increase over the forecast period, taking into account rapid growth in drilling activities, awareness about the benefit associated with sulfonated asphalt, and rise in government support.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The applications in the global sulfonated asphalt market include drilling fluid emulsifier and drilling fluid lubricant.
In addition to market size (in USD Million), company market share (in % for base year 2019), other data such macro-economic factors and COVID-19 impact on the value chain are also available in the final report.
According to this Growth Market Reports, the market from sulfonated asphalt is likely to register a CAGR of 3.8% during forecast period 2020-2027, with an anticipated valuation of USD 442.1 million by the end of the 2027.
Yes, the report provides supply chain analysis along with a list of raw material suppliers, manufacturers, distributors, and customers.
Additional company profiles can be provided on request.
Some other reports from this category!