This research quantified the global addressable market for drag reducing agents (DRA) across crude oil, refined product, and heavy oil pipelines. ADI assessed the economic trade-offs between chemical additive injection and infrastructure expansion (looping or pump station upgrades) under varying production scenarios. The study evaluated competitive dynamics among key chemical producers and the operational requirements of specialized injection equipment.
The client
Private equity firm
The situation
Ambiguity regarding the penetration of DRA in non-crude segments and the impact of pipeline utilization on chemical demand.
ADI’s contributions
Pipeline throughput modeling
ADI analyzed existing pipeline network globally to identify hydraulic bottlenecks where DRA offers the highest IRR.
Comparative cost analysis
Technical evaluation of chemical vs. mechanical expansion established the commercial threshold for additive adoption.
Competitive landscape mapping
Benchmarking of Tier 1 and Tier 2 DRA producers revealed differentiation through proprietary polymer formulations.
Refined product segment analysis
Investigation of chemical compatibility and additive removal requirements identified growth barriers in fuels pipelines.
Key outcomes
- Validation of high-growth niches in refined product pipelines and identification of specialized equipment service models.
More insights
CBAM puts a new price tag on emissions
On April 7, 2026, the European Commission announced the first official Carbon Border Adjustment Mechanism (CBAM) certificate price for Q1 2026 at €75.36 per tonne of CO2 equivalent (~$88/t CO2e), marking the EU’s first explicit carbon price applied to imported goods. This rate will be applied to the embedded emissions in CBAM-covered imports and is […]
Cooling fluids are becoming a constraint in AI data centers
Immersion cooling fluids are taking on more importance as data‑center operators deploy higher‑power artificial intelligence (AI) and high-performance computing (HPC) systems. Rack densities are increasing faster than traditional air systems can accommodate, and liquid cooling is now part of the design discussion for many new builds and retrofits. In that context, fluid properties affect reliability, […]
Implications of UAE’s exit from OPEC
Part of ADI Analytics’ ongoing coverage of the implications of the Iran conflict across oil & gas, LNG, refined products, and chemicals. The UAE’s exit from OPEC (see our prior blog) in late April 2026 reflects a decisive shift toward a volume‑driven strategy focused on monetizing its hydrocarbon resource base ahead of the global energy […]