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Shale Gas & Tight Oil: Products & Services

Shale Gas & Tight Oil: Products & Services

US demand to surpass $90 billion in 2017
Demand for products and services used in the development of shale gas and tight oil reservoirs is forecast to surpass $90 billion in 2017. The rapid growth in production from these unconventional resources continues to have a ripple effect throughout the US economy. After years of declines, US crude oil production is rising again and abundant low cost natural gas resources are rejuvenating the US manufacturing sector. This will provide opportunities for oilfield service companies across the board and will continue to require large amounts of chemicals, proppants, and essential equipment such as drill bits, tubular goods, and well logging equipment.

Liquid plays to remain strong; gas plays to revive
Large scale shale gas development began in the Barnett in the early 2000s and quickly spread to other natural gas plays. However, in recent years, low gas prices have limited growth in the gas sector (except for newly developing plays such as the Marcellus) and narrow profit margins for shale gas operators and a jump in oil prices have turned attention to more liquid rich plays such as the Bakken, Eagle Ford, and Permian Basin formations. Going forward, activity in liquid plays will remain strong and a forecast recovery in natural gas prices will begin to drive renewed interest in dry gas plays such as Haynesville.

Demand for products will be driven not only by overall levels of industry activity but also by increasing well depths and continued efforts to maximize well output and heighten drilling and completion efficiency. The continued usage of high volume hydraulic fracturing will require significant amounts of fracturing fluids and proppants as well as pressure pumping services. As plays enter the development stage, operators will work to optimize their process designs, which will lead to continuing changes in the types of proppants and fluids used. For example, in recent years gelled fluids lost ground to slickwater formulations but now operators are moving away from slickwater in some areas to hybrid fluids or other products that improve well output while minimizing environmental impact. Furthermore, many operators have begun using proprietary water based drilling muds that mimic the performance of oil and synthetic based muds, but at less risk to the environment.

A significant amount of this new unconventional resource development is occurring in areas that were not traditional hotbeds of oil and gas activity. In some cases this resulted in a backlog of wells that needed completion due to a lack of available infrastructure or shortages in completion crews. However, it has also increased regional demand for a number of products used in well drilling and completion and prompted the opening of new regional manufacturing facilities to make these products.

Well output to fall, boosting product & service demand
As some of these shale gas and tight oil plays begin to reach maturity over the next decade, average per well output will fall as the number of new wells is unable to offset the production declines in legacy wells. This should spur healthy demand for production and workover services but also will prompt continued drilling of new wells to support output. Additional opportunities will present themselves should production from plays with considerable potential like the Monterey and Wolfcamp become commercially viable over the next 10 years.


  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table SHALE PRODUCTS & SERVICES DEMAND
  • MARKET ENVIRONMENT
    • Macroeconomic Environment
      • Table MACROECONOMIC INDICATORS
    • Demographic Overview
      • Table POPULATION & HOUSEHOLDS
    • US Petroleum & Natural Gas Overview
      • Table PETROLEUM & NATURAL GAS SUPPLY & DEMAND
      • Petroleum Market
        • Table PETROLEUM SUPPLY & DEMAND
        • Table CHART II-1 US PETROLEUM IMPORTS BY SOURCE, 2012
        • Table CHART II-2 PETROLEUM RESERVES, 2002-2012
        • Table CHART II-3 CRUDE OIL RESERVES BY STATE, 2012
        • Table PETROLEUM PRODUCTION & PRODUCING WELLS
        • Table PETROLEUM DRILLING INDICATORS
        • Table CHART II-4 PETROLEUM DRILLING INDICATORS, 2007-2012
        • Table CHART II-5 PETROLEUM PRICES, 2002-2012
      • Natural Gas Market
        • Table NATURAL GAS SUPPLY & DEMAND
        • Table CHART II-6 NATURAL GAS RESERVES, 2002-2012
        • Table CHART II-7 NATURAL GAS RESERVES BY STATE, 2012
        • Table NATURAL GAS PRODUCTION & PRODUCING WELLS
        • Table CHART II-8 NATURAL GAS PRODUCTION, 2002-2012
        • Table NATURAL GAS DRILLING INDICATORS
        • Table CHART II-9 NATURAL GAS DRILLING INDICATORS, 2007-2012
        • Table CHART II-10 NATURAL GAS WELLHEAD PRICES, 2002-2012
    • Environmental & Regulatory Considerations
    • International Activity
  • OVERVIEW
    • General
    • Technology Overview
      • Exploration
      • Drilling
      • Completion
      • Hydraulic Fracturing
    • Cost Comparison
    • Drilling & Completion Activity
      • Table TIGHT OIL & SHALE GAS DRILLING INDICATORS
      • Tight Oil
        • Table TIGHT OIL DRILLING INDICATORS
      • Shale Gas
        • Table SHALE GAS DRILLING INDICATORS
    • Production Outlook
      • Table TIGHT OIL & SHALE GAS PRODUCTION & PRODUCING WELLS
      • Tight Oil
        • Table TIGHT OIL PRODUCTION & PRODUCING WELLS
      • Shale Gas
        • Table SHALE GAS PRODUCTION & PRODUCING WELLS
    • Shale Products & Services Demand
      • Table SHALE PRODUCTS & SERVICES DEMAND
      • Table CHART III-1 SHALE PRODUCTS & SERVICES DEMAND, 2007-2022
  • PRODUCTS
    • General
      • Table SHALE PRODUCTS DEMAND
    • Drilling Products
      • Table DRILLING PRODUCTS DEMAND BY TYPE & PLAY
      • Equipment & Parts
        • Table EQUIPMENT & PARTS DEMAND BY TYPE & PLAY
        • Table CHART IV-1 EQUIPMENT & PARTS DEMAND BY TYPE, 2012
        • Table TUBULAR GOODS DEMAND BY TYPE
        • Table DOWNHOLE TOOL DEMAND BY TYPE
        • Table DRILL BITS & REAMERS DEMAND BY TYPE
        • Table OTHER EQUIPMENT & PARTS DEMAND
        • Table CHART IV-2 DRILLING EQUIPMENT & PARTS MARKET SHARE, 2012
      • Drilling Fluids
        • Table DRILLING FLUID DEMAND BY TYPE & PLAY
        • Table CHART IV-3 DRILLING FLUID DEMAND BY TYPE, 2012
        • Table CHART IV-4 DRILLING FLUIDS MARKET SHARE, 2012
    • Stimulation Products
      • Table STIMULATION PRODUCTS DEMAND BY TYPE & PLAY
      • Proppants
        • Table PROPPANTS DEMAND BY TYPE & PLAY
        • Table CHART IV-5 PROPPANT DEMAND BY TYPE, 2012
        • Table SAND PROPPANTS DEMAND
        • Table RAW SAND PROPPANTS DEMAND
        • Table COATED SAND PROPPANTS DEMAND
        • Table CERAMIC PROPPANTS DEMAND
        • Table OTHER PROPPANTS DEMAND
        • Table CHART IV-6 PROPPANTS MARKET SHARE, 2012
      • Chemicals & Gases
        • Table CHEMICALS & GASES DEMAND BY TYPE & PLAY
        • Table CHART IV-7 CHEMICALS & GASES DEMAND BY TYPE, 2012
        • Table GELLING AGENT DEMAND BY PLAY
        • Table BIOCIDES DEMAND BY PLAY
        • Table GASES DEMAND BY PLAY
        • Table ACIDS DEMAND BY PLAY
        • Table BREAKERS DEMAND BY PLAY
        • Table CROSSLINKING AGENT DEMAND BY PLAY
        • Table OTHER CHEMICALS DEMAND BY TYPE & PLAY
        • Table CHART IV-8 CHEMICALS & GASES MARKET SHARE, 2012
    • Other Fluids & Materials
      • Table OTHER FLUIDS & MATERIALS DEMAND BY TYPE & PLAY
      • Table CHART IV-9 OTHER FLUIDS & MATERIALS DEMAND BY TYPE, 2012
      • Cementing Products
      • Completion & Workover Fluids
      • Production Chemicals
  • SERVICES
    • General
      • Table SHALE SERVICES DEMAND
      • Table CHART V-1 SHALE SERVICES DEMAND BY TYPE, 2012
    • Pressure Pumping Services
      • Table PRESSURE PUMPING SERVICES DEMAND BY TYPE
    • Drilling Services
      • Table DRILLING SERVICES DEMAND BY TYPE
      • Table CHART V-2 DRILLING SERVICES DEMAND BY TYPE, 2012
    • Other Completion & Production Services
      • Table OTHER COMPLETION & PRODUCTION SERVICES DEMAND BY TYPE
    • Market Share
      • Table CHART V-3 SERVICES MARKET SHARE, 2012
  • REGIONS & PLAYS
    • General
    • Shale Activity by Region
      • Tight Oil
        • Table TIGHT OIL ACTIVITY BY REGION
      • Shale Gas
        • Table SHALE GAS ACTIVITY BY REGION
    • Shale Activity by Play
      • Production
        • Table TIGHT OIL PRODUCTION BY PLAY
        • Table SHALE GAS PRODUCTION BY PLAY
      • Rigs & Wells
        • Table ACTIVE TIGHT OIL RIGS BY PLAY
        • Table TIGHT OIL WELLS DRILLED BY PLAY
        • Table TIGHT OIL WELLS COMPLETED BY PLAY
        • Table TIGHT OIL PRODUCING WELLS BY PLAY
        • Table ACTIVE SHALE GAS RIGS BY PLAY
        • Table SHALE GAS WELLS DRILLED BY PLAY
        • Table SHALE GAS WELLS COMPLETED BY PLAY
        • Table SHALE GAS PRODUCING WELLS BY PLAY
    • Shale Products & Services Demand by Region
      • Table SHALE PRODUCTS & SERVICES DEMAND BY REGION
      • Table CHART VI-1 SHALE PRODUCTS & SERVICES DEMAND BY REGION, 2012
      • Southern Region
        • Table SOUTHERN REGION: SHALE PRODUCTS & SERVICES DEMAND
      • Midwestern Region
        • Table MIDWESTERN REGION: SHALE PRODUCTS & SERVICES DEMAND
      • Eastern Region
        • Table EASTERN REGION: SHALE PRODUCTS & SERVICES DEMAND
      • Western Region
        • Table WESTERN REGION: SHALE PRODUCTS & SERVICES DEMAND
    • Shale Products & Services by Play
      • Table SHALE PRODUCTS & SERVICES DEMAND BY PRINCIPAL PLAY
      • Table CHART VI-2 SHALE PRODUCTS & SERVICES DEMAND BY PRINCIPAL PLAY, 2012
      • Permian Basin
        • Table PERMIAN BASIN: SHALE PRODUCTS & SERVICES DEMAND
      • Bakken
        • Table BAKKEN: SHALE PRODUCTS & SERVICES DEMAND
      • Eagle Ford
        • Table EAGLE FORD: SHALE PRODUCTS & SERVICES DEMAND
      • Marcellus
        • Table MARCELLUS: SHALE PRODUCTS & SERVICES DEMAND
      • Barnett
        • Table BARNETT: SHALE PRODUCTS & SERVICES DEMAND
      • Haynesville
        • Table HAYNESVILLE: SHALE PRODUCTS & SERVICES DEMAND
      • Woodford
        • Table WOODFORD: SHALE PRODUCTS & SERVICES DEMAND
      • Fayetteville
        • Table FAYETTEVILLE: SHALE PRODUCTS & SERVICES DEMAND
      • Other Plays
        • Table OTHER PLAYS: SHALE PRODUCTS & SERVICES DEMAND
  • INDUSTRY STRUCTURE
    • General
      • Table US SHALE PRODUCTS & SERVICES SALES BY COMPANY, 2012
    • Market Share
      • Table CHART VII-1 SHALE PRODUCTS & SERVICES MARKET SHARE, 2012
    • Mergers & Acquisitions
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Cooperative Agreements
      • Table SELECTED COOPERATIVE AGREEMENTS
    • Research & Development
      • Table RESEARCH & DEVELOPMENT EXPENDITURES: SELECTED OILFIELD SERVICE COMPANIES, 2008-2012
    • Marketing & Distribution
    • Company Profiles
      • Air Products and Chemicals Incorporated
      • Aker Solutions ASA
      • Aker Well Service AS
      • Akzo Nobel NV
      • Albemarle Corporation
      • Ashland Incorporated
      • Badger Mining Corporation
      • Baker Hughes Incorporated
      • BASF SE
      • Cameron International Corporation
      • CARBO Ceramics Incorporated
      • Chesapeake Energy Corporation
      • Chevron Phillips Chemical Company LLC
      • Clariant International Limited
      • Dow Chemical Company
      • DuPont (EI) de Nemours
      • Ecolab Incorporated
      • Ensign Energy Services Incorporated
      • Exxon Mobil Corporation
      • Fairmount Minerals Limited
      • FTS International Services LLC
      • Halliburton Company
      • Helmerich & Payne Incorporated
      • Key Energy Services Incorporated
      • Momentive Performance Materials Holdings LLC
      • Nabors Industries Limited
      • National Oilwell Varco Incorporated
      • Newpark Resources Incorporated
      • OAO TMK
      • Patterson-UTI Energy Incorporated
      • Pioneer Energy Services Corporation
      • Praxair Incorporated
      • Precision Drilling Corporation
      • Preferred Sands LLC
      • Saint-Gobain
      • Schlumberger Limited
      • Schoeller-Bleckmann Oilfield Equipment AG
      • SCR-Sibelco NV
      • Solvay SA
      • Superior Energy Services Incorporated
      • Tenaris SA
      • TETRA Technologies Incorporated
      • Trinidad Drilling Limited
      • United States Steel Corporation
      • US Silica Holdings Incorporated
      • Vallourec SA
      • Weatherford International Limited
    • Additional Companies Mentioned in Study

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