LONDON, Oct. 29, 2014 /PRNewswire/ -- Growing shale gas, tight oilproduction to drive gains
The rapid growth in production ofunconventional resources like shale gasand tight oil has had a ripple effectthroughout the US economy. After yearsof declines, US crude oil production isrising again and abundant low costnatural gas resources are rejuvenating theUS manufacturing sector. This willprovide opportunities for manufacturersof well stimulation materials across theboard as oil and gas operators continue torequire large amounts of proppants, aswell as chemicals like biocides, guargum, and surfactants.
Rising natural gas pricesto boost gas production
Historically, the well stimulation marketwas focused on the stimulation of maturewells. However, success in the BarnettShale in the early 2000s with techniquessuch as horizontal drilling and hydraulicfracturing led to increased stimulation ofnew wells upon completion. Todayhydraulic fracturing is used during thecompletion of nearly all new wells in theUS, both unconventional and conventional,although product use per well issignificantly lower for the latter. Whileactivity has cooled somewhat in gasproducing areas in recent years due tolow natural gas prices, operators havefocused instead on liquid-rich formations,more than making up for any decline.Moving forward, as natural gas pricesclimb, operator activity -- and wellstimulation material demand -- in areaswith substantial gas deposits is expectedto accelerate.
Increasing well depthsamong product sales drivers
Product sales will be driven not only byoverall levels of industry activity but alsoby increasing well depths and continuedefforts to maximize well output andincrease completion efficiency. Thecontinued use of high volume hydraulicfracturing will require significantamounts of fracturing fluids and proppants.As plays enter the developmentstage, operators will work to optimizetheir process designs, which will lead tocontinuing changes in the types ofproppants and fluids used. For example inrecent years gelled fluids lost ground toslickwater formulations but now operatorsare moving away from slickwater insome areas in favor of hybrid fluids orother products that improve well outputwhile minimizing environmental impact.A significant amount of this new unconventionalresource development is takingplace in areas that were not traditionalhotbeds of oil and gas activity. For example,despite years of steady oil and gasproduction, North Dakota and Pennsylvaniawere not considered major oil andgas producing states until the developmentof the Bakken and Marcellus formations,respectively. As a result, a numberof new proppant production and storagefacilities have opened in these states.
Aging wells to benefitrestimulation materials
As existing conventional wells continueto age and a number of wells in emergingunconventional formations reach maturityin the coming years, average per welloutput will fall as the number of newwells is unable to offset the productiondeclines in legacy wells. This will resultin a greater number of wells requiringrestimulation, creating healthy demandfor products utilized in these activities.Additional well stimulation material salesopportunities will present themselvesshould production from plays withconsiderable potential, like the Montereyand Wolfcamp, become commerciallyviable over the next 10 years.
Study coverage
This upcoming industry study,Well Stimulation Materials, presents historical demand data(2003, 2008 and 2013) plus forecasts for2018 and 2023 by product and US region.The study also considers market environmentfactors, evaluates company marketshare and profiles 51 industry players.
Download the full report: https://www.reportbuyer.com/product/702471/
About Reportbuyer
Reportbuyer is a leading industry intelligence solution that provides all market research reports from top publishers
http://www.reportbuyer.com
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: www.reportbuyer.com
SOURCE ReportBuyer
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article