North American Oil & Gas Lubricants Market – Growth, Trends and Forecasts (2017 – 2022)
Increase in oil & gas production driven by the growth of the US unconventional production, and a strong pipeline of Canadian oil sands projects - are the major factors that drive the oil & gas lubricants market in North America. The demand from OEMs for increased efficiency, reduced fuel consumption, and improved performance is expected to drive the development of lubricants with superior properties, and lead to rising prices. The adoption of premium lubricants is gaining momentum in the North America, owing to technological advancements and use of sophisticated equipment.
The principal function of the lubricant is friction reduction. In addition to that, lubricants also reduce the amount of wear that occurs during operations, reduces operating temperatures, minimizes corrosion of metal surfaces, and assists in keeping contaminants out of the system. Exploration and production activities in oil & gas sector involve heavy machinery, which require lubrication from time to time.
The application of lubricants across all the streams of oil & gas industry is crucial, as the breakdown of machinery at any point would attract huge losses to the associated companies. The usage of the lubricants extends to - maximizing the service life of machinery components, boosting equipment reliability, and enhancing energy efficiency. With the growing emphasis on non-conventional sources, such as shale gas, coal-bed methane, etc., the demand for lubricants is projected to increase during 2017-2022 (the forecast period).
Oil & gas lubricants are used extensively in both offshore and onshore applications. The best use of these lubricants is seen in equipment used for production from an unconventional resource like shale gas and tight oil, where sophisticated technologies are required. The penetration of oil & gas exploration activities into deep waters is driving the lubrication market.
The market is further segmented by lubricants type into grease, coolant/antifreezer, and others. Coolants/antifreezers are mostly used in offshore fields, as they play a vital role in mitigating extreme temperature problems while drilling.
The United States is expected to account for the largest market share in the region, among the countries including the United States, Canada, and others. Despite the continuous low oil prices, there are fast-track development plans for large deep-water fields in the United States. More drilling opportunities are expected to open up, as the Trump administration is about to review the 27 large environmental areas protected against leasing under the 1906 Antiquities Act. While in Canada, the availability of proven shale gas and heavy oil reserves, combined with the consistent developments in horizontal drilling and hydraulic fracturing (that will aid in the exploration of unconventional resources), is expected to spur the market for lubricants during the forecast period. Improved regulatory environment and new project developments in Mexico are expected to positively impact the oil & gas lubricants market.
Some of the major players active in the region are Dow Corning, Mobil, Lubrication Engineers, The Chemours Company, Klüber Lubrication, among others.