Shale gas products & services


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Shale gas products & services

  1. 1. Shale Gas: Products & ServicesReport SummaryUS shale gas development to reach $50 billion by 2015Demand for products and services used in US shale gas development willgrow to nearly $50 billion in 2015 as industry activity continues to escalatein the emerging Marcellus, Haynesville and Fayetteville shale plays. Whileshale gas drilling will slow from the rapid buildup of the 2005-2010 period,the industry will still bring more than 8,000 new producing wells onlinethrough 2015. Increasing demand for drilling and completion products andservices for new shale gas wells will be accompanied by growing marketsfor workover, restimulation, and well site reclamation services in areaswhere production is maturing.Low natural gas prices since 2008 have narrowed the profit margin ofshale gas investment. Shale gas producers are responding to this trend byseeking improvements in well economics, in many cases through the use ofhighervalue products and services. Through the forecast period, shale gasproducers will continue to embrace innovations such as multiple-welldrilling pad systems and advanced hydraulic fracturing materials in orderto improve drilling efficiencies and increase per-well gas output, thusbolstering profitability as gas prices remain below 2008 highs.Tubular goods, drilling fluids and proppants to lead gainsDemand for drilling equipment and consumables in the shale gas plays willgrow to more than $6.8 billion in 2015, led by nearly double-digit growthin tubular goods, the largest equipment category. Shale operators willcontinue to consume more tubular goods overall and on a per-well basis.Growth in demand for chemicals and materials will slightly outpace thatseen for drilling equipment and consumables, reflecting the intensivematerial demands of the wells that will be drilled in the newer shale plays.Stimulation products, especially proppants, used in hydraulic fracturingwill be the dominant source of chemicals and materials demand.Browse All Energy and Power Market Research ReportsRobust growth in service revenues to continueThe market for services used by shale gas producers will reach more than$38 billion in 2015. Demand for services will continue to be dominated bycontract drilling and pressure pumping, which together account for morethan 60 percent of the total market. Service providers will continue tobenefit from high levels of shale gas drilling activity as well as theincreased scale and sophistication of wells in the emerging plays, despitethese trends slowing from the 2005-2010 period. Other segments such ascompletion and production services and waste management andremediation services will be promoted by a range of factors. This willinclude increased workover and restimulation activity as well as new stateand federal laws requiring additional environmental services at well sites.
  2. 2. Marcellus, Haynesville to generate most new demandRegional variations in the shale gas market are strong due to geographicaldifferences in recoverable reserves and the different stages of industrydevelopment in the major plays. The Southern Region dominated productsand services demand in 2010 and will retain half of the total marketthrough the forecast period, even as the Midwestern Region registersfaster annual gains based on activity in the Marcellus, Woodford and anumber of other emerging shale plays. Through 2020, the Marcellus Shalewill be the fastest growing market for products and services of the majorplays.Table of ContentsINTRODUCTIONI. EXECUTIVE SUMMARYII. MARKET ENVIRONMENTMacroeconomic EnvironmentDemographic OverviewManufacturing OverviewUS Petroleum & Natural Gas OverviewElectricity GenerationNatural Gas Market OverviewExploration & ReservesNatural Gas Supply & DemandProductionDrillingPricingEnvironmental & Regulatory ConsiderationsInternational ActivityIII. SHALE GAS OVERVIEWGeneralTechnology OverviewExplorationDrillingCompletionHydraulic FracturingCost ComparisonDrilling ActivityProduction OutlookShale Gas Products & Services DemandIV. PRODUCTSGeneralDrilling Equipment & Consumables
  3. 3. Tubular GoodsDownhole ToolsDrill Bits & ReamersOther Drilling Equipment & ConsumablesMarket ShareFluids & MaterialsStimulation ProductsProppantsSand ProppantsOther ProppantsChemicals & GasesFriction ReducersBiocidesGelling AgentsGasesOther ChemicalsDrilling FluidsOther Fluids & MaterialsMarket ShareV. SERVICESGeneralPressure Pumping ServicesDrilling ServicesCompletion & Production ServicesOther ServicesVI. REGIONS & PLAYSGeneralReservesShale Gas Activity by RegionShale Gas Activity by PlayProductionRigs & Wells DrilledShale Gas Products & Services Demand by RegionSouthern RegionEastern RegionMidwestern RegionWestern RegionShale Gas Products & Services by PlayHaynesvilleMarcellusBarnettFayettevilleWoodford
  4. 4. AntrimOther PlaysVII. INDUSTRY STRUCTUREGeneralMarket ShareMergers & AcquisitionsResearch & DevelopmentCompany ProfilesAir Products and Chemicals IncorporatedAkzo Nobel NVAlbemarle CorporationAnadarko Petroleum CorporationAshland IncorporatedAtlas Resin Proppants, see Badger MiningBadger Mining CorporationBaker Hughes IncorporatedBASF SEBJ Services, see Baker HughesCARBO Ceramics IncorporatedChampion Technologies IncorporatedChesapeake Energy CorporationChevron Phillips Chemical Company LPComplete Production Services IncorporatedCorsiTech, see Champion TechnologiesDevon Energy CorporationDow Chemical CompanyDrilling Specialties, see Chevron Phillips ChemicalDuPont (EI) de NemoursEQT CorporationExxon Mobil CorporationFairmount Minerals LimitedFrac Tech Services IncorporatedHalliburton CompanyHelmerich & Payne IncorporatedM-I SWACO, see SchlumbergerMarkWest Energy Partners LPMomentive Specialty Chemicals IncorporatedNabors Industries LimitedNational Oilwell Varco IncorporatedNewpark Resources IncorporatedOAO TMKPatterson-UTI Energy IncorporatedRange Resources CorporationRhodia SARohm and Haas, see Dow ChemicalSaint-Gobain
  5. 5. Santrol Proppants, see Fairmount MineralsSchlumberger LimitedSchoeller-Bleckmann Oilfield Equipment AGSmith International, see SchlumbergerSuperior Well Services, see Nabors IndustriesTenaris SAUnited States Steel CorporationUniversal Well Services, see Patterson-UTI EnergyUS Silica CompanyVallourec SAWeatherford International LimitedXTO Energy, see Exxon MobilAdditional Companies Mentioned in StudyLIST OF TABLESSECTION I -- EXECUTIVE SUMMARYSummary TableSECTION II -- MARKET ENVIRONMENT1 Macroeconomic Indicators2 Population & Households3 Manufacturers’ Shipments4 Petroleum & Natural Gas Supply & Demand5 Electricity Generation by Fuel Source & Plant Type6 US Natural Gas Supply & Demand7 Natural Gas Production by Source8 Natural Gas Drilling IndicatorsSECTION III -- SHALE GAS OVERVIEW1 Shale Gas Drilling Indicators2 Shale Gas Production & Producing Wells3 Shale Gas Products & Services DemandSECTION IV -- PRODUCTS1 Shale Gas Products Demand2 Drilling Equipment & Consumables Demand by Type & Play3 Tubular Goods Demand by Type4 Downhole Tool Demand by Type5 Drill Bits & Reamers Demand by Type6 Other Equipment & Consumables Demand7 Fluids & Materials Demand by Type8 Stimulation Products Demand by Type & Play9 Proppants Demand by Type & Play10 Sand Proppants Demand11 Other Proppants Demand12 Chemicals & Gases Demand by Type & Play
  6. 6. 13 Friction Reducers Demand by Play14 Biocides Demand by Play15 Gelling Agent Demand by Play16 Gases Demand by Play17 Other Chemicals Demand by Type & Play18 Drilling Fluid Demand by Type & Play19 Other Fluids & Materials Demand by TypeSECTION V -- SERVICES1 Shale Gas Services Demand2 Pressure Pumping Services Demand by Type3 Drilling Services Demand by Type4 Completion & Production Services Demand by Type5 Other Services Demand by TypeSECTION VI -- REGIONS & PLAYS1 US Shale Gas Reserves by Principal Play, 20102 Shale Gas Activity by Region3 Shale Gas Production by Play4 Shale Gas Activity by Play5 Shale Gas Products & Services Demand by Region6 Southern Region: Shale Gas Products & Services Demand7 Eastern Region: Shale Gas Products & Services Demand8 Midwestern Region: Shale Gas Products & Services Demand9 Western Region: Shale Gas Products & Services Demand10 Shale Gas Products & Services Demand by Principal Play11 Haynesville Play: Shale Gas Products & Services Demand12 Marcellus Play: Shale Gas Products & Services Demand13 Barnett Play: Shale Gas Products & Services Demand14 Fayetteville Play: Shale Gas Products & Services Demand15 Woodford Play: Shale Gas Products & Services Demand16 Antrim Play: Shale Gas Products & Services Demand17 Other Plays: Shale Gas Products & Services DemandSECTION VII -- INDUSTRY STRUCTURE1 US Shale Gas Product & Service Sales by Company, 20102 Selected Acquisitions & DivestituresLIST OF CHARTSSECTION II -- MARKET ENVIRONMENT1 Natural Gas Prices, 2000-2010SECTION IV -- PRODUCTS1 Drilling Equipment & Consumables Demand by Type, 20102 Fluids & Materials Demand by Type, 2010
  7. 7. SECTION V -- SERVICES1 Shale Gas Services Demand, 2010SECTION VI -- REGIONS & PLAYS1 Shale Gas Products & Services Demand by Region, 2010SECTION VII -- INDUSTRY STRUCTURE1 Shale Gas Products & Services Market Share, 2010About Us:ReportsnReports is an online library of over 100,000+ market researchreports and in-depth market research studies & analysis of over 5000micro markets. We provide 24/7 online and offline support to ourcustomers. Get in touch with us for your needs of market research reports.Follow us on Twitter: Facebook Page: Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog