Abstract
Record oil and gas prices to drive US demand
Demand for oil and gas well stimulation materials will surpass $3 billion in
2012, buoyed by historically high oil and gas prices and increased efforts to
optimize energy production as part of an effort to reduce dependence on
foreign energy sources, particularly from unfriendly or unstable countries.
Well stimulation services are necessary in order to maximize the output from
the aging US oil and gas fields.
In addition, the increasing prevalence of deeper wells in harsher environments
-- such as in deep offshore waters -- will increase the demand for higher
performance engineered proppants and other value-added materials. The
exploitation of coal beds and tight sands for the production of natural gas
will intensify the need for hydraulic fracturing systems that are less
damaging to low permeability formations. Finally, oil and gas prices are
expected to remain historically high in the coming years, which will encourage
new drilling and efforts to maximize the output from marginally producing
wells, for which stimulation efforts are generally not justified in low energy
price environments.
Alternative uses to present greater gas opportunities
Nitrogen and carbon dioxide are the dominant gases in well stimulation.
Nitrogen is used in fracturing operations in more sensitive formations, such
as coal beds and seams, where unconventional techniques are used more
frequently. Carbon dioxide is finding increasing use as the primary
constituent of fracturing fluids. Liquid carbon dioxide can carry proppant
without the aid of gelling agents or additives.
Study coverage
It presents historical demand data (1997, 2002 and 2007) plus forecasts for
2012 and 2017 by product type and by region of the US. The study also assesses
market environment factors, evaluates company market share data and profiles
selected competitors in the US industry.
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