US demand for oil and gas well stimulation materials is projected to increase 14 percent annually through 2014. Gains will be buoyed by renewed efforts to reduce dependence on foreign energy sources. The largest segment, proppants, will also be one of the fastest growing, along with gases and other materials.

This study analyzes the $3.8 billion US well stimulation material industry. It presents historical demand data for the years 1999, 2004 and 2009, and forecasts for 2014 and 2019 by product (e.g., proppants, base fluid materials, fluid additives, industrial gases) and US regional market (Southern, Western, Eastern, Midwestern).

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 35 industry players, including CARBO Ceramics, Fairmount Minerals and Praxair.

				    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