Oilfields Go Smart: Chemicals Get a Digital Makeover

Middle East oil giants turn to smart tech to cut chemical costs and emissions.

24 Apr 2025

Oil producers in the Middle East are adopting digital tools to overhaul their use of oilfield chemicals, targeting lower costs and improved operational efficiency in a market valued at several billion dollars annually.

The shift towards automated, data-driven chemical management is reducing consumption levels while maintaining production stability and lowering environmental risks. Producers in Saudi Arabia and the United Arab Emirates are among those reporting significant efficiency gains, as they respond to cost pressures and stricter environmental standards.

Central to this transformation are intelligent systems that monitor chemical dosing in real time. By automatically adjusting application rates, operators avoid excessive usage and minimise the risk of production disruptions.

Leading international service companies have moved quickly to offer these solutions. Halliburton has introduced advanced sensors and cloud-based platforms that enable precise control of chemical treatment processes. Clariant is rolling out similar digital technologies, providing early detection of performance issues and reducing the need for manual intervention.

“The conversation has changed,” a senior Saudi energy executive said at a recent industry event. “We’re no longer just buying chemicals, we’re investing in smarter production.”

As the region’s largest energy groups prioritise digital performance, traditional supply contracts based on volume are giving way to agreements tied to operational outcomes. Smaller suppliers risk being marginalised, while major companies strengthen their position through investments in digital services.

Industry analysts expect these trends to accelerate, driven by demands for greater accountability, efficiency, and environmental compliance. Early adopters of smart systems are likely to gain competitive advantage, while slower-moving rivals face reduced market share.

The Middle East’s oilfield chemical industry is entering a phase of digital-led restructuring, with real-time monitoring and automated control set to redefine procurement strategies and production practices.