Growth will be driven by continued gains in hydraulic fracturing technology designed to boost well
productivity, especially for proppants and the fluids used to deliver them into formation fractures.
US demand to rise 10.2%
annually through 2016
US demand for well stimulation materials
is projected to increase more than 10
percent annually to nearly $12 billion in
2016. Growth will be sustained by
continued advances in hydraulic fracturing
technology designed to increase the
productivity of both new and existing
wells. Ongoing growth in horizontal
drilling activity and development of shale
resources will boost demand for proppants
and the fluids used to deliver them
into formation fractures. In the early
portion of the forecast period, use in oil
well drilling will provide most of the
impetus for growth, as oil prices are high
by historical standards and natural gas
prices are not. However, shale gas
development activity was strong in 2009,
2010, and 2011, despite low prices.
Shale gas producers to
use more well stimulation
Growth in shale plays has been supported
by companies looking to establish
a shale gas presence and the desire of
existing producers to develop already
acquired leases, as well as by hedges
on production made when prices were
high. Through the forecast period, shale
gas producers will continue to embrace
innovations such as multiple-well drilling
pad systems and advanced hydraulic
fracturing materials in order to improve
drilling efficiencies and increase per-well
output, all of which will benefit well
stimulation material demand.
Well stimulation to grow
at a decelerating pace
Well stimulation technologies have had a
commercial presence for more than 60
years, but for much of that time these
techniques were used fairly selectively. A
number of factors have combined to
transform well stimulation in the US from
a niche technology to one of the most
common oilfield activities. Technological
advances have improved well stimulation
techniques to the point that their use --
and cost -- is nearly always justified by
increased well productivity. Going
forward, gains for well stimulation
materials will remain strong, despite
some deceleration in growth.
A decade
or two ago, most wells drilled in the US
were not fractured. That is no longer the
case. Moreover, much of the recent
growth in demand for well stimulation
materials has been attributable to the
emergence of horizontal drilling and
multistage fracturing. Horizontal drilling
allows for greater reservoir contact, and
therefore faster and fuller well productivity.
Multistage fracturing allows for a
larger number of fractures to be created
at specific locations within a single
wellbore. Where fracturing jobs usually
included two or three stages, they can
now include up to a few dozen stages.
Although it is expected that the number
of stages per fracturing job will continue
to grow, it is anticipated that this growth
will be slower than the pace seen in the
past several years.
Study Scope
This study analyzes the $7.4 billion US well stimulation material industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., proppants, fluid additives, base fluid materials, industrial gases) and regional market (Southern, Midwestern, Eastern, Western).
The study also considers market environment factors, details industry structure, evaluates company market shares and profiles 40 industry players, including CARBO Ceramics, Fairmount Minerals and FTS International.
