Abstract
World demand to rise over 10% annually through 2010
World demand for well stimulation materials is projected to increase ten
percent per year through 2010 to $4 billion. High oil and gas prices over much
of the 2002- 2006 period have enabled and motivated major producers to raise
production of crude oil and natural gas via increasing exploration and use of
well stimulation techniques as a consequence. In countries where existing
reserves are depleting at a rapid pace, stimulation needs are significantly
expanding.
Four countries dominate worldwide demand
In the major oil producing countries of the Middle East, stimulation
requirements are minimal at present due to the presence of a relatively small
number of producing wells that require limited production enhancement. In
fact, over 90 percent of world well stimulation material demand is
concentrated in just four countries: the US, Russia, China and Canada, in
order of importance.
All four of these countries cover vast land masses and large coastlines
suitable for onshore and offshore exploration. US demand by itself represents
about 60 percent of the global market for well stimulation materials. Through
2010, US sales of well stimulation materials will grow in excess of the global
average due to increasingly maturing existing oil and gas wells in the country
as well as rising exploration and drilling in challenging environments --
oftentimes requiring deeper well drilling and use of more expensive well
stimulation materials.
Demand for well stimulation materials holds the strongest prospects in China
through 2010, as the country continues to exhibit robust economic growth. To
maintain such a rapid pace of economic development, China is attaching
increasing focus on energy security from both external and internal supplies.
Western well stimulation material producing companies are increasingly setting
up production sites in China.
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