Because of the rising demand for natural gas and crude oil, the global hydrate inhibitors market is booming

 

Hydrate Inhibitors are the chemical substance which serves to regulate the rate of dissolving of monosodium hydrate in natural gas. Their function is to inhibit hydrate formation during maturation. This is a gas that is formed during the drilling process when there is the presence of water. When this occurs, it results in the production of a high amount of ethylene and propane. Due to this reason, it is essential to reduce the formation of hydrates in crude oil by using inhibitors.

There has always been a constant demand for natural gas and crude oil in the world. Hydrate inhibitors help in reducing line blockages and hydrate plugs that form during hydrate formation. Hydrate inhibitors are also utilized where other methods such as active heating and insulated flow line do not work. Owing to all these features, there is a constant demand for better inhibitors in the global hydrate inhibitors market. For instance, according to International Energy Agency, in 2019, the demand for natural gas at a worldwide level increased by 1.5% when compared to the demand of 2018. This ever-increasing demand for natural gas and crude oil is resulting in better growth of the global hydrate inhibitors market. The growth of the global hydrate inhibitors market is also dependent on the consumption of natural gas as the inhibitors are used in preventing or reducing the hydrate formation of onshore and offshore production systems.

However, low oil prices and political instability can influence the global hydrate inhibitors market negatively. According to the Organization of the Petroleum Exporting Countries (OPEC), instability in political levels has negatively impacted the production of oil and gas in Latin America's Venezuela region and has resulted in a significant decrease in the production capacity.

In recent times, there have been increased exploration activities in North America, which has resulted in the formation of significant demand in the global hydrate inhibitors market. For instance, according to Drillinginfo, there are over 900,000 active oil and gas wells in the U.S. and more than 130,000 have been drilled in the last few years. Moreover, there is a high consumption rate of natural gas in the region which is also augmenting the growth of the global hydrate inhibitors market. The hydrate inhibitors market in the Asia Pacific is witnessing exception growth in the demand curve, owing to the demand for the inhibitors from regions such as Africa and the Middle East. According to the Energy Information Administration, India has one of the largest gas reserves on its east coast. Additionally, there are increasing government initiatives related to the new development and advancement of technology of hydrate inhibitors, which is creating propulsion in the global hydrate inhibitors market.