Bharatbook added a new report on “Well Stimulation Materials” which tells US demand for oil and gas well stimulation materials. Well Stimulation Materials to 2014
Rebounding oilfield activity to fuel US well stimulation materials demand
US demand for oil and gas well stimulation materials is projected to post doubledigit gains and exceed $7 billion in 2014, buoyed by renewed efforts to reduce dependence on foreign energy sources, particularly from unfriendly or unstable countries. Well stimulation services are necessary in order to maximize the output from aging US oil and gas fields, and to optimize production in unconventional settings such as tight gas, shale and coal bed methane. The Haynesville Shale in East Texas/Western Louisiana and the Marcellus Shale in the Eastern US are among the areas generating the most enthusiasm in terms of their productive potential; and hydraulic fracturing is critical to the successful development of these formations.
In conventional production environments, the increasing prevalence of deeper wells in harsher environments — such as in extremely deep offshore waters — will increase the demand for higher performance engineered ceramic proppants and other value-added materials. The exploitation of coal beds and tight sands for the production of natural gas will intensify the need for hydraulic fracturing systems that are less damaging to low permeability formations. Finally, despite a retreat from the lofty prices of 2007 and 2008, oil and gas prices are expected to remain historically high in the coming years, which will encourage new drilling and efforts to maximize the output from marginally producing wells.
Regulation, other governmental actions expected to influence the market
Hydraulic fracturing and other stimulation techniques have become widely used in oil and gas producing regions, and have unquestionably contributed to the efficiency and productivity of US oilfields. Regulatory requirements and other government directives are likely to continue to have a profound influence on the nature of the industry. This is true of overarching regulations pertaining to oil and gas exploration and production, such as decisions about offshore drilling areas (e.g., the Obama administration’s recent statements concerning the possibility of drilling off the Atlantic Coast, or the potential for increased regulations in the aftermath of the April 2010 incident in which a rig caught fire and sank in the Gulf of Mexico). In addition, there are a number of regulatory actions specific to the well stimulation industry that may shape the marketplace going forward. Among such actions is the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act, which would repeal the industry’s exemption from the terms of the Safe Drinking Water Act and require oil and gas operators to disclose the ingredients of fracturing fluids.
Proppants of all types will continue to lead
Proppants are expected to remain the largest product category. All proppant types are projected to post strong growth. Resin-coated sand proppants are finding increased use in shale gas formations. Ceramic proppants are being used to meet the strength requirements for deeper wells. Raw frac sand will continue to dominate the market in volume terms due to its low cost and performance in less stressful applications. Also, new lighter weight proppants, such as resin-coated walnut hulls, will find increased use.
This new Freedonia industry study, Well Stimulation Materials, is available for $4900. It presents historical demand data (1999, 2004, 2009) as well as forecasts for 2014 and 2019 by product type and region of the US. The study also reviews key market environment factors, assesses company market share and profiles more than 35 competitors in the US industry.
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