Energy, Oil & Gas:

Shale gas, petrochemicals and their derivatives, drilling fluids, coagulants, cement and stimulation products, oil production chemicals, various oil & gas services

The energy industry is the third largest industry in the U.S., and includes oil, natural gas, coal, nuclear power, renewable energy and fuels, as well as electricity, smart grid, and demand response technologies. The majority of produced energy still comes from fossil fuels such as petroleum and natural gas. Alternative energy sources are poised to grow in the coming years with an increased emphasis on renewable energy sources and incentives from the government.

The global chemical industry is a large energy consumer, accounting for roughly 10% of total worldwide final energy demand and 7% of global industrial greenhouse gas (GHG) emissions, according to a study conducted by the ICAA (2013). The major segments of the US energy industry, described below, are also a part of the broader chemical industry.

  • Natural gas production, products and services – The term "shale revolution" is used to describe recent developments of the tremendous production of oil and natural gas in the United States. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. With the escalation in emerging shale plays, the US shale gas product and service industry, estimated at $29 billion, is growing in double digits. Products used in gas exploration include drilling equipment and consumables, drilling fluids, stimulation products (sand and other proppants, friction reducers, gelling agents, biocides, gases, and other stimulation chemicals), and other fluids and materials. Services include pressure pumping services, drilling services, completion and production services, testing and related services, water recycling and reuse, and wastewater management.

  • Petrochemicals and their derivatives – Petrochemicals are chemical products derived from petroleum or natural gas. The abundance of petroleum from fossil fuels and other renewable resources coupled with a relatively cheap production cost has served as the basis for the modern day boom of petrochemical manufacturing. Petrochemicals are precursors to a variety of products used to manufacture thousands of products that people use in their everyday lives. They serve a variety of purposes and products include everything made of plastic, many fertilizers, medicines and medical devices, cosmetics, furniture, vehicle parts and many others.

  • Oilfield chemicals and services – Rapid growth of unconventional oil and gas activity in North America in recent years has driven the volume of demand for oilfield chemicals. As old sites are inhibited by corrosion and scaling, and new sites are discovered in more obscure locations, such as high-temperature, high-pressure and corrosive conditions, additional higher grade specialty chemicals will be required. The combination of oilfield chemicals including drilling fluids, cementing and stimulation products, and oil production chemicals is necessary to effectively extract oil from these sources.

Back to Sectors