Why Is Oil and Gas industry Using Bromine?

The rising need for energy-efficient storage technologies owing to the burgeoning production of renewable energy will augment the consumption of bromine (Br) in the forthcoming years. In recent years, bromine-based technology has emerged as a cost-effective solution for clean energy storage due to the constant research and development (R&D) being conducted in the power sector. This clean technology is being deployed in power grids, as bromine-powered batteries do not require any alteration in their electroactive materials for recharging.

Additionally, the escalating use of clear brine fluids in the oil and gas industry drive the bromine market at a CAGR of 5.7% during the forecast period (2020–2030). According to P&S Intelligence, the market generated $1,864.3 million revenue in 2019. Clear brine fluids are being used during oil and gas drilling as they reduce the bottom hole temperature and pressure in the borewells. Numerous soluble salts are added to such fluids after considering the pressure and temperature freeze points, clarity, freezing points, and densities of the wells.

In recent years, bromine manufacturers have been focusing on capacity expansion to meet the increasing requirement for this substance. For instance, in July 2018, LANXESS AG unveiled its plan to invest $56 million for enhancing bromine production at its El Dorado plant in the U.S. Similarly, in September 2019, the Industrial Products division of Israel Chemicals Ltd. announced its plan to increase its annual Br and Br derivative production capacity to nearly 25,000 tons by 2021.

Geographically, the Asia-Pacific bromine market accounted for the largest share during the historical period (2014–2019), and it is expected to continue this trend throughout the forecast period. This can be primarily attributed to the high-volume consumption and production of bromine in China. Additionally, the soaring consumption of bromine-based flame retardants in electronic, plastic, and insulation products will supplement the market growth in the region. In the APAC market, China generates the highest revenue due to the mounting number of derivative manufacturing plants in the nation, owing to the abundant availability of bromine and cost-effective labor.

Therefore, the burgeoning demand for energy-efficient storage technology and increasing use of clear brine fluids in the oil and gas industry will fuel the consumption of Br derivatives worldwide.