HOUSTON, Feb. 7 (UPI) -- Technological developments in shale oil and natural gas drilling have made those reserves easier to extract while benefiting other economic sectors, IHS said.
The IHS Chemical 2012 Oil Field Chemicals Report concluded the global market for oil field specialty chemicals reached $16 billion in 2010. More than half of that came from the United States and Canada, the global analysis firm said.
Ray Will, a lead author of the report, said technological advancements have made "previously uneconomic reserves" in North America more attractive to energy companies.
"Naturally, this increase in drilling and production has resulted in higher volumes of drilling, stimulation and cementing chemicals," he said in a statement. "In turn, increased supplies of natural gas have caused price declines, making gas more competitive both for electricity production and as a raw material for chemicals production here in the U.S."
IHS said the overall shale market increased in the last four years despite a weak global economy.
Critics of hydraulic fracturing complain some of the chemicals used in the process are harmful to the environment. Minor earthquakes were attributed to shale developments in the United States and Great Britain.
IHS said safety and health issues do have "a major impact on the current and future use of oil field chemicals."
