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
What EQT–Range means for gas prices
On October 26, 2026, EQT Corporation agreed to buy Range Resources, both Appalachian gas producers, in an all-stock deal valued at $13.84 billion. The combined company produces over 9 billion cubic feet of gas equivalent per day (Bcfe/d), the most of any U.S. gas producer. ADI Analytics’ analysis of how this might impact the outlook […]
Water limits reshape oil & gas, power, and chemical operations
Water now sets operating limits in three industries ADI covers. Permian produced water volumes rose from 11.2 million bbl/d in 2017 to 24.9 million bbl/d in 2025, and regulators have restricted the disposal wells that take most of it. Refineries and chemical plants on the Texas Gulf Coast and the Rhine face allocation plans and […]
Trends shaping the U.S. midstream outlook
I recently had the opportunity to share ADI’s latest research on the U.S. midstream oil and gas industry at the 10th Annual OCTG & Line Pipe Forecast Summit. My presentation explored how oil and gas production growth, LNG export expansion, and increasing power demand are driving a new wave of midstream investment. As illustrated in […]