Shale Gas: Products & Services

NEW YORK, Sept. 1, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Shale Gas: Products & Services

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US shale gas development to reach $50 billion by 2015

Demand for products and services used in US shale gas development will grow to nearly $50 billion in 2015 as industry activity continues to escalate in the emerging Marcellus, Haynesville and Fayetteville shale plays. While shale gas drilling will slow from the rapid buildup of the 2005-2010 period, the industry will still bring more than 8,000 new producing wells online through 2015. Increasing demand for drilling and completion products and services for new shale gas wells will be accompanied by growing markets for workover, restimulation, and well site reclamation services in areas where production is maturing. Low natural gas prices since 2008 have narrowed the profit margin of shale gas investment. Shale gas producers are responding to this trend by seeking improvements in well economics, in many cases through the use of highervalue products and services. 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 gas output, thus bolstering profitability as gas prices remain below 2008 highs.

Tubular goods, drilling fluids and proppants to lead gains

Demand for drilling equipment and consumables in the shale gas plays will grow to more than $6.8 billion in 2015, led by nearly double-digit growth in tubular goods, the largest equipment category. Shale operators will continue to consume more tubular goods overall and on a per-well basis. Growth in demand for chemicals and materials will slightly outpace that seen for drilling equipment and consumables, reflecting the intensive material demands of the wells that will be drilled in the newer shale plays. Stimulation products, especially proppants, used in hydraulic fracturing will be the dominant source of chemicals and materials demand.

Robust growth in service revenues to continue

The market for services used by shale gas producers will reach more than $38 billion in 2015. Demand for services will continue to be dominated by contract drilling and pressure pumping, which together account for more than 60 percent of the total market. Service providers will continue to benefit from high levels of shale gas drilling activity as well as the increased scale and sophistication of wells in the emerging plays, despite these trends slowing from the 2005-2010 period. Other segments such as completion and production services and waste management and remediation services will be promoted by a range of factors. This will include increased workover and restimulation activity as well as new state and federal laws requiring additional environmental services at well sites.

Marcellus, Haynesville to generate most new demand

Regional variations in the shale gas market are strong due to geographical differences in recoverable reserves and the different stages of industry development in the major plays. The Southern Region dominated products and services demand in 2010 and will retain half of the total market through the forecast period, even as the Midwestern Region registers faster annual gains based on activity in the Marcellus, Woodford and a number of other emerging shale plays. Through 2020, the Marcellus Shale will be the fastest growing market for products and services of the major plays.

Study coverage

This new industry study, Shale Gas, presents historical US demand data (2005, 2010) plus forecasts for 2015 and 2020 by product, service and region. The study also considers key market environment factors, evaluates company market share and profiles more than 30 competitors in the US industry.

TABLE OF CONTENTS

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

Macroeconomic Environment 4

Demographic Overview 8

Manufacturing Overview 12

US Petroleum & Natural Gas Overview 15

Electricity Generation 18

Natural Gas Market Overview 22

Exploration & Reserves 22

Natural Gas Supply & Demand 23

Production 25

Drilling 28

Pricing 29

Environmental & Regulatory Considerations 31

International Activity 34

III. SHALE GAS OVERVIEW 38

General 38

Technology Overview 40

Exploration 41

Drilling 42

Completion 44

Hydraulic Fracturing 46

Cost Comparison 48

Drilling Activity 50

Production Outlook 52

Shale Gas Products & Services Demand 53

IV. PRODUCTS 56

General 56

Drilling Equipment & Consumables 58

Tubular Goods 61

Downhole Tools 64

Drill Bits & Reamers 68

Other Drilling Equipment & Consumables 70

Market Share 72

Fluids & Materials 73

Stimulation Products 75

Proppants 76

Sand Proppants 78

Other Proppants 79

Chemicals & Gases 81

Friction Reducers 83

Biocides 85

Gelling Agents 86

Gases 87

Other Chemicals 89

Drilling Fluids 92

Other Fluids & Materials 95

Market Share 98

V. SERVICES 99

General 99

Pressure Pumping Services 101

Drilling Services 103

Completion & Production Services 107

Other Services 110

VI. REGIONS & PLAYS 113

General 113

Reserves 115

Shale Gas Activity by Region 117

Shale Gas Activity by Play 118

Production 118

Rigs & Wells Drilled 121

Shale Gas Products & Services Demand by Region 125

Southern Region 127

Eastern Region 129

Midwestern Region 131

Western Region 134

Shale Gas Products & Services by Play 136

Haynesville 138

Marcellus 141

Barnett 145

Fayetteville 149

Woodford 152

Antrim 156

Other Plays 159

VII. INDUSTRY STRUCTURE 164

General 164

Market Share 167

Mergers & Acquisitions 170

Research & Development 174

Company Profiles 176

Air Products and Chemicals Incorporated 177

Akzo Nobel NV 178

Albemarle Corporation 180

Anadarko Petroleum Corporation 181

Ashland Incorporated 183

Atlas Resin Proppants, see Badger Mining

Badger Mining Corporation 185

Baker Hughes Incorporated 187

BASF SE 192

BJ Services, see Baker Hughes

CARBO Ceramics Incorporated 194

Champion Technologies Incorporated 197

Chesapeake Energy Corporation 199

Chevron Phillips Chemical Company LP 202

Complete Production Services Incorporated 204

CorsiTech, see Champion Technologies

Devon Energy Corporation 206

Dow Chemical Company 207

Drilling Specialties, see Chevron Phillips Chemical

DuPont (EI) de Nemours 210

EQT Corporation 212

Exxon Mobil Corporation 214

Fairmount Minerals Limited 216

Frac Tech Services Incorporated 218

Halliburton Company 220

Helmerich & Payne Incorporated 224

M-I SWACO, see Schlumberger

MarkWest Energy Partners LP 226

Momentive Specialty Chemicals Incorporated 228

Nabors Industries Limited 230

National Oilwell Varco Incorporated 233

Newpark Resources Incorporated 236

OAO TMK 239

Patterson-UTI Energy Incorporated 241

Range Resources Corporation 243

Rhodia SA 244

Rohm and Haas, see Dow Chemical

Saint-Gobain 246

Santrol Proppants, see Fairmount Minerals

Schlumberger Limited 248

Schoeller-Bleckmann Oilfield Equipment AG 254

Smith International, see Schlumberger

Superior Well Services, see Nabors Industries

Tenaris SA 257

United States Steel Corporation 259

Universal Well Services, see Patterson-UTI Energy

US Silica Company 261

Vallourec SA 263

Weatherford International Limited 266

XTO Energy, see Exxon Mobil

Additional Companies Mentioned in Study 269

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8

2 Population & Households 12

3 Manufacturers' Shipments 15

4 Petroleum & Natural Gas Supply & Demand 18

5 Electricity Generation by Fuel Source & Plant Type 22

6 US Natural Gas Supply & Demand 25

7 Natural Gas Production by Source 27

8 Natural Gas Drilling Indicators 29

SECTION III -- SHALE GAS OVERVIEW

1 Shale Gas Drilling Indicators 51

2 Shale Gas Production & Producing Wells 53

3 Shale Gas Products & Services Demand 55

SECTION IV -- PRODUCTS

1 Shale Gas Products Demand 58

2 Drilling Equipment & Consumables Demand by Type & Play 60

3 Tubular Goods Demand by Type 64

4 Downhole Tool Demand by Type 67

5 Drill Bits & Reamers Demand by Type 70

6 Other Equipment & Consumables Demand 72

7 Fluids & Materials Demand by Type 74

8 Stimulation Products Demand by Type & Play 76

9 Proppants Demand by Type & Play 77

10 Sand Proppants Demand 79

11 Other Proppants Demand 81

12 Chemicals & Gases Demand by Type & Play 83

13 Friction Reducers Demand by Play 84

14 Biocides Demand by Play 85

15 Gelling Agent Demand by Play 87

16 Gases Demand by Play 89

17 Other Chemicals Demand by Type & Play 92

18 Drilling Fluid Demand by Type & Play 95

19 Other Fluids & Materials Demand by Type 97

SECTION V -- SERVICES

1 Shale Gas Services Demand 100

2 Pressure Pumping Services Demand by Type 102

3 Drilling Services Demand by Type 106

4 Completion & Production Services Demand by Type 110

5 Other Services Demand by Type 112

SECTION VI -- REGIONS & PLAYS

1 US Shale Gas Reserves by Principal Play, 2010 116

2 Shale Gas Activity by Region 118

3 Shale Gas Production by Play 121

4 Shale Gas Activity by Play 124

5 Shale Gas Products & Services Demand by Region 126

6 Southern Region: Shale Gas Products & Services Demand 129

7 Eastern Region: Shale Gas Products & Services Demand 131

8 Midwestern Region: Shale Gas Products & Services Demand 134

9 Western Region: Shale Gas Products & Services Demand 136

10 Shale Gas Products & Services Demand by Principal Play 138

11 Haynesville Play: Shale Gas Products & Services Demand 139

12 Marcellus Play: Shale Gas Products & Services Demand 143

13 Barnett Play: Shale Gas Products & Services Demand 147

14 Fayetteville Play: Shale Gas Products & Services Demand 150

15 Woodford Play: Shale Gas Products & Services Demand 154

16 Antrim Play: Shale Gas Products & Services Demand 157

17 Other Plays: Shale Gas Products & Services Demand 160

SECTION VII -- INDUSTRY STRUCTURE

1 US Shale Gas Product & Service Sales by Company, 2010 166

2 Selected Acquisitions & Divestitures 172

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Natural Gas Prices, 2000-2010 31

SECTION IV -- PRODUCTS

1 Drilling Equipment & Consumables Demand by Type, 2010 61

2 Fluids & Materials Demand by Type, 2010 75

SECTION V -- SERVICES

1 Shale Gas Services Demand, 2010 101

SECTION VI -- REGIONS & PLAYS

1 Shale Gas Products & Services Demand by Region, 2010 126

SECTION VII -- INDUSTRY STRUCTURE

1 Shale Gas Products & Services Market Share, 2010 170

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