US Shale Gas & Tight Oil Market worth $90 Billion by 2017
DALLAS, March 4, 2014 /PRNewswire-iReach/ -- RnRMarketResearch.com adds "Shale Gas & Tight Oil: Products & Services to 2017" to its store that says the rapid growth in production from these unconventional resources continues to have a ripple effect throughout the US economy.
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 slick water formulations but now operators are moving away from slick water 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.
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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.
Company Profiles for 41 competitors in the US industry such as Chesapeake Energy, Devon Energy, Enervest, Quicksilver Resources and XTO Energy
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