World Well Stimulation Materials

World Well Stimulation Materials

This study examines the global market for chemicals and other materials used in the stimulation of oil and natural gas wells for the purpose of increasing production output. These materials include gelling agents; crosslinking agents; foaming agents; inorganic and organic acids; additives such as breakers, corrosion inhibitors, biocides and friction reducers; proppants; and other materials such as explosives, abrasives and solvents. Most materials covered -- such as acids, solvents and gelling agents -- are commodities used as ingredients in well stimulation fluids mixed in the field to meet the specific conditions of the particular well being stimulated. A few of the materials -- such as engineered proppants and explosives -- are inherently more specialized. In this study, all materials are treated in aggregate to define the size of the market for well stimulation materials. Excluded from the scope of the study are well stimulation services. As a result, the market data presented in this study may differ from other estimates that utilize different definitions and encompass additional or different products.

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
World Economic Overview 5
Recent Historical Trends 5
Macroeconomic Outlook 8
World Demographic Outlook 11
World Manufacturing Outlook 13
World Petroleum Outlook 15
Reserves & Exploration 15
Production 18
Crude Oil Pricing Patterns 19
World Natural Gas Outlook 22
Reserves & Exploration 23
Production 25
Natural Gas Pricing Patterns 27
Oilfield Services Indicators 29

III. TECHNOLOGY 32
General 32
Well Drilling & Completion 34
Horizontal Drilling 35
Multilateral Drilling 36
Coiled Tubing Drilling 38
Underbalanced Drilling 38
Well Completion 39
Well Stimulation Technologies 40
Hydraulic Fracturing 41
Acidizing 43
Fracture Acidizing 48
Other Well Stimulation Technologies 49
Well Stimulation Fluids 52
Fracturing Fluids 52
Foamed Fracturing Fluids 55
Acidizing Fluids 56
Foamed Acidizing Fluids 56
Seismology 57

IV. WORLD OVERVIEW 58
General 58
Product Overview 60
Proppants Demand 61
Ceramic Proppants 63
Sand & Other Proppants 65
Proppants Demand by Country 69
Base Fluid Materials Demand 70
Gelling Agents 71
Foaming Agents 72
Acids 74
Crosslinking Agents 75
Other Base Fluid Materials 75
Base Fluid Materials Demand by Country 77
Additives Demand 78
Breakers 80
Friction Reducers 82
Fluid Loss Control Agents 82
Nonemulsifiers 83
Biocides 84
Corrosion Inhibitors 85
Other Additives 86
Additives Demand by Country 88

V. KEY COUNTRIES 90
United States 90
Russia 103
Canada 114
China 123

VI. OTHER REGIONS 133
Latin America 133
Europe 139
Asia/Pacific 147
Africa/Mideast 152

VII. INDUSTRY STRUCTURE 157
General 157
Market Share & Industry Composition 160
Mergers & Acquisitions 163
Cooperative Agreements 164
Marketing & Distribution 168
Research & Development 171
Competitive Strategies 172
Company Profiles 174
Akzo Nobel NV 175
Albemarle Corporation 176
Aqualon, see Hercules Incorporated
Badger Mining Corporation 178
Baker Hughes Incorporated 179
BASF AG 181
BJ Services Company 182
Borden Chemical Incorporated, see Hexion Specialty Chemicals Incorporated
Canfrac Sands Limited, see Metro Engineering and Contracting Limited
CARBO Ceramics Incorporated 186
Champion Technologies Incorporated 188
Chevron Phillips Chemical Company LLC 189
Cognis Deutschland GmbH & Company KG 191
Dow Chemical Company 192
DuPont (EI) de Nemours 194
Enerchem International Incorporated 196
Engelhard Corporation, see BASF AG
Fairmount Minerals Limited 197
FMC Corporation 199
Guizhou LinHai New Material Manufacturing Company 200
Halliburton Company 201
Hercules Incorporated 203
Hexion Specialty Chemicals Incorporated 205
JSC Borovichi Refractories Plant 206
M-I SWACO LLC, see Smith International Incorporated and Schlumberger Limited
Metro Engineering and Contracting Limited 207
Mineração Curimbaba Limitada 207
Navdeep Chemicals Private Limited 208
Praxair Incorporated 209
PT Tesso Tetra Chemika 210
Rhodia SA 211
Saint-Gobain 214
Santrol, see Fairmount Minerals Limited
Schlumberger Limited 216
Smith International Incorporated 220
Trekhgorny Ceramic Factory 223
Unimin Corporation 223
US Silica Company 224
Yixing Orient Petroleum Proppant Company Limited 225
Other Companies Mentioned in Study 226 LIST OF TABLES

TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 World Gross Domestic Product by Region 11
2 World Population by Region 13
3 World Manufacturing Value Added by Region 14
4 World Crude Oil Production by Country 19
5 World Natural Gas Production by Country 27
6 World Oilfield Service Indicators 31

SECTION IV -- WORLD OVERVIEW
1 World Well Stimulation Materials Demand 60
2 World Well Stimulation Materials Demand by Product 61
3 World Proppants Demand by Type 63
4 World Proppants Demand by Country 70
5 World Well Stimulation Base Fluid Materials Demand by Type 71
6 World Well Stimulation Base Fluid Materials Demand by Country 78
7 World Well Stimulation Additives Demand by Type 80
8 World Well Stimulation Additives Demand by Country 89

SECTION V -- KEY COUNTRIES
1 United States -- Key Indicators for Well Stimulation Materials 93
2 United States -- Well Stimulation Materials Demand 97
3 United States -- Proppants Demand 99
4 United States -- Well Stimulation Fluids & Additives Demand 103
5 Russia -- Key Indicators for Well Stimulation Materials 107
6 Russia -- Well Stimulation Materials Demand 110
7 Russia -- Proppants Demand 112
8 Russia -- Well Stimulation Fluids & Additives Demand 114
9 Canada -- Key Indicators for Well Stimulation Materials 117
10 Canada -- Well Stimulation Materials Demand 119
11 Canada -- Proppants Demand 121
12 Canada -- Well Stimulation Fluids & Additives Demand 123
13 China -- Key Indicators for Well Stimulation Materials 128
14 China -- Well Stimulation Materials Demand 129
15 China -- Proppants Demand 131
16 China -- Well Stimulation Fluids & Additives Demand 132

SECTION VI -- OTHER REGIONS
1 Latin America -- Key Indicators for Well Stimulation Materials 136
2 Latin America -- Well Stimulation Materials Demand by Type 138
3 Latin America -- Well Stimulation Materials Demand by Country 139
4 Europe -- Key Indicators for Well Stimulation Materials 144
5 Europe -- Well Stimulation Materials Demand by Type 145
6 Europe -- Well Stimulation Materials Demand by Area 146
7 Asia/Pacific -- Key Indicators for Well Stimulation Materials 150
8 Asia/Pacific -- Well Stimulation Materials Demand by Type 151
9 Asia/Pacific -- Well Stimulation Materials Demand by Country 152
10 Africa/Mideast -- Key Indicators for Well Stimulation Materials 155
11 Africa/Mideast -- Well Stimulation Materials Demand by Type 156

SECTION VII -- INDUSTRY STRUCTURE
1 Selected Acquisitions & Divestitures 164
2 Selected Cooperative Agreements 166

LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 Proven Oil Reserves by Region, 2005 17
2 Average Annual Spot Crude Prices, 1995-2005 22
3 Proven Natural Gas Reserves by Region, 2005 24
4 Average Natural Gas Prices, 1995-2005 28

SECTION VII -- INDUSTRY STRUCTURE
1 World Well Stimulation Materials Market Share, 2005 162