TABLE OF CONTENTS
SECTION PAGE
Introduction xi
I. Executive Summary 1
II. Market Environment 4
General 4
Macroeconomic Environment 6
US Petroleum & Natural Gas Overview 9
Petroleum Outlook 12
Production 15
Drilling 20
Pricing 22
Natural Gas Outlook 25
Production 27
Drilling 32
Pricing 33
Well Stimulation Services Outlook 36
Formulated Well Stimulation Fluid Demand 41
Market Volatility 45
Pricing & Product Mix 47
Environmental & Regulatory Considerations 50
Foreign Trade 54
World Petroleum & Natural Gas Reserves 55
World Petroleum Reserves 55
World Natural Gas Reserves 58
World Petroleum & Natural Gas Production 60
World Petroleum Production 60
World Natural Gas Production 63
World Well Stimulation Material Outlook 66
III. Technology 68
General 68
Well Drilling & Completion 70
Horizontal Drilling 70
Multilateral Drilling 72
Coiled Tubing Drilling 73
Underbalanced Drilling 74
Well Completion 74
Well Stimulation Technologies 76
Hydraulic Fracturing 76
Nitrogen Fracturing 79
Acidizing 79
Types 80
Uses 81
Retardation of Acid Reactions 83
Fracture Acidizing 84
Other Well Stimulation Technologies 85
Well Stimulation Fluids 87
Fracturing Fluids 88
Foamed Fracturing Fluids 91
Acidizing Fluids 91
Foamed Acidizing Fluids 92
Seismology 92
IV. Products 94
General 94
Proppants 97
Sand Proppants 100
Coated Sand Proppants 102
Raw Frac Sand Proppants 104
Ceramic Proppants 106
Clay-Based Ceramic Proppants 108
Sintered Bauxite Ceramic Proppants 109
Coated Ceramic Proppants 111
Other Proppants 113
Base Fluid Materials 115
Foaming Agents 118
Gas Foaming Agents 120
Chemical Foaming Agents 122
Gelling Agents 124
Guar Gum Gelling Agents 126
Surfactant Gelling Agents 128
Other Gelling Agents 130
Acids 131
Inorganic Acids 133
Organic Acids 135
Crosslinking Agents 137
Other 139
Fluid Additives 141
Breakers 144
Acid Breakers 146
Oxidative Breakers 148
Enzyme Breakers 150
Friction Reducers 152
Fluid Loss Control Agents 154
Nonemulsifiers 155
Biocides 157
Corrosion Inhibitors 159
Other 161
Industrial Gases 164
Nitrogen 166
Carbon Dioxide 167
Other Well Stimulation Materials 168
V. Regional Markets 172
General 172
Producing Wells 176
Well Output Levels 179
Regional Rig Counts 182
Well Stimulation Material Regional Overview 183
Southern Region 185
Oil & Gas Well Overview 186
Well Stimulation Material Demand 187
Texas 189
New Mexico 190
Louisiana 191
Other 192
Western Region 194
Oil & Gas Well Overview 195
Well Stimulation Material Demand 196
Wyoming 199
California 201
Colorado 201
Other 203
Eastern Region 204
Oil & Gas Well Overview 204
Well Stimulation Material Demand 206
Pennsylvania 207
West Virginia 208
Other 209
Midwestern Region 210
Oil & Gas Well Overview 210
Well Stimulation Material Demand 211
Oklahoma 213
Kansas 214
Kentucky 215
Other 215
VI. Industry Structure 217
General 217
Industry Composition 221
Market Share 224
Marketing & Distribution 228
Research & Development 230
Competitive Strategies 232
Company Profiles 234
Air Products and Chemicals Incorporated 235
Akzo Nobel NV 236
Albemarle Corporation 238
Aquaness Chemical, see Baker Hughes
Ashland Incorporated 240
Atlas Resin Proppants LLC, see Badger Mining
Badger Mining Corporation 242
Baker Hughes Incorporated 244
BASF SE 248
BJ Services Company, see Baker Hughes
CARBO Ceramics Incorporated 250
Celanese Corporation 253
Champion Technologies Incorporated 254
Chem-Tech Incorporated, see Schlumberger and Smith International
Chemtura Corporation 255
Chevron Phillips Chemical Company LLC 257
Ciba Holding Incorporated, see BASF
Dow Chemical Company 259
Drilling Specialties Company, see Chevron Phillips Chemical
DuPont (EI) de Nemours 262
Enerchem International Incorporated 264
Exxon Mobil Corporation 265
Fairmount Minerals Limited 267
FMC Corporation 269
Gibson Energy ULC 271
Halliburton Company 272
Hercules Incorporated, see Ashland
Hexion Specialty Chemicals Incorporated 275
Huber (JM) Corporation 276
Hunting plc 278
Kelco Oil Field Group, see Huber (JM)
Kinder Morgan Energy Partners LP 279
Lubrizol Corporation 281
McIntyre Group Limited, see Rhodia
M-I SWACO LLC, see Schlumberger and Smith Incorporated
Mineração Curimbaba Limitada 282
Moose Jaw Refinery Incorporated, see Gibson Energy
Olin Corporation 283
Plastics Engineering Company 284
Plenco, see Plastics Engineering Company
Praxair Incorporated 285
Rhodia SA 286
Rio Tinto Group 289
Rohm and Haas Company, see Dow Chemical
Saint-Gobain 290
Santrol Incorporated, see Fairmount Minerals
Schlumberger Limited 292
Smith International Incorporated 296
US Borax Incorporated, see Rio Tinto
US Silica Company 298
Other Companies Mentioned in Study 300
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- Executive Summary
Summary Table 3
SECTION II -- Market Environment
1 Macroeconomic Indicators 9
2 US Energy Consumption & Production by Type 11
3 US Petroleum Supply & Demand 14
4 Petroleum Drilling Indicators 22
5 US Natural Gas Supply & Demand 27
6 Natural Gas Drilling Indicators 33
7 Well Stimulation Services Indicators 40
8 Formulated Well Stimulation Material Demand 44
9 Well Stimulation Material Market, 1999-2009 46
10 Prices for Selected Well Stimulation Materials 50
11 World Petroleum Reserves by Country, 2009 57
12 World Natural Gas Reserves by Country, 2009 59
13 World Petroleum Production by Country, 2009 62
14 World Natural Gas Production by Country, 2009 65
SECTION IV -- Products
1 Well Stimulation Material Demand by Type 96
2 Proppant Demand by Type 99
3 Sand Proppant Demand by Type 102
4 Coated Sand Proppant Demand 104
5 Raw Frac Sand Proppant Demand 106
6 Ceramic Proppant Demand by Type 107
7 Clay-Based Ceramic Proppant Demand 109
8 Sintered Bauxite Proppant Demand 111
9 Coated Ceramic Proppant Demand 112
10 Other Proppant Demand 115
11 Base Fluid Material Demand by Type 117
12 Foaming Agent Demand by Type 120
13 Gas Foaming Agent Demand 122
14 Chemical Foaming Agent Demand 124
15 Gelling Agent Demand by Type 126
16 Guar Gum Gelling Agent Demand 128
17 Surfactant Gelling Agent Demand 129
18 Other Gelling Agent Demand 131
19 Acid Demand by Type 133
20 Inorganic Acid Demand by Type 135
21 Organic Acid Demand by Type 136
22 Crosslinking Agent Demand by Type 139
23 Other Base Fluid Material Demand 141
24 Fluid Additive Demand by Type 143
25 Breaker Demand by Type 146
26 Acid Breaker Demand 148
27 Oxidative Breaker Demand 150
28 Enzyme Breaker Demand 152
29 Friction Reducer Demand 154
30 Fluid Loss Control Agent Demand 155
31 Nonemulsifier Demand 157
32 Biocide Demand 159
33 Corrosion Inhibitor Demand 161
34 Other Additive Demand 164
35 Industrial Gas Demand 165
36 Nitrogen Demand 167
37 Carbon Dioxide Demand 168
38 Other Well Stimulation Material Demand 171
SECTION V -- Regional Markets
1 US Oil & Gas Producing Regions 176
2 Producing Wells by Type & Region 178
3 High Output Wells by Region 181
4 Rotary Rig Count by Region 182
5 Well Stimulation Material Demand by Region 184
6 Southern Region: High Output Wells 187
7 Southern Region: Well Stimulation Material Demand 188
8 Western Region: High Output Wells 196
9 Western Region: Well Stimulation Material Demand 198
10 Eastern Region: High Output Wells 205
11 Eastern Region: Well Stimulation Material Demand 206
12 Midwestern Region: High Output Wells 211
13 Midwestern Region: Well Stimulation Material Demand 212
SECTION VI -- Industry Structure
1 Well Stimulation Material Sales by Company, 2009 219
2 Selected Acquisitions & Divestitures 223
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- Market Environment
1 US Crude Oil Imports by Source, 2009 15
2 US Petroleum Production 17
3 Crude Oil Production by State, 2009 18
4 Crude Oil Producing States, 2009 19
5 Crude Oil Prices, 1999-2009 25
6 Natural Gas Production, 1999-2009 30
7 Natural Gas Producing States, 2009 31
8 Natural Gas Prices, 1999-2009 35
9 Natural Gas Price & Crude Oil Price, 1999-2009 36
10 Well Stimulation Market, 1999-2009 47
SECTION IV -- Products
1 Well Stimulation Material Demand by Type, 2009 97
2 Proppant Demand by Type, 2009 100
3 Ceramic Proppant Demand by Type, 2009 108
4 Base Fluid Material Demand by Type, 2009 118
5 Fluid Additive Demand by Type, 2009 144
SECTION V -- Regional Markets
1 Producing Wells by Region, 2009 179
2 High Output Wells by Region, 2009 181
3 Rotary Rig Count by Region, 2009 183
4 Well Stimulation Material Demand by Region, 2009 185
5 Southern Region: Well Stimulation Material Demand, 2009 189
6 Western Region: Well Stimulation Material Demand, 2009 199
7 Eastern Region: Well Stimulation Material Demand, 2009 207
8 Midwestern Region: Well Stimulation Material Demand, 2009 213
SECTION VI -- Industry Structure
1 US Well Stimulation Material Market Share, 2009 224