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US Well Stimulation Materials Market
US Well Stimulation Materials Market
- Report price : $ 4 600
- Publication date : June 2008
US Well Stimulation Materials Market
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.
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