There will be a rise in the demand for the products and services that are employed in the development of shale gas to $52 billion during 2015, as the industrial activity persists in shooting up in the budding Fayetteville, Marcellus, Haynesville shale plays.
The industry will deliver over 8,000 latest producing wells online during 2015, though the shale gas drilling will slow down from the quick increase of the period during 2005-2010. The demand rising for drilling and finished products and services for the latest shale gas wells will be complemented by the sprouting markets for restimulation, work over as well as the reclamation services of well sites in those matured production areas. These and additional trends are portrayed in the Shale Gas: Products + Services, which is a recent study from the Cleveland-based, The Freedonia Group.
There will be increase in demand for drilling consumables and equipment in the shale gas plays to almost $7 billion during 2015, which is led by strong tubular goods increment. The operators of Shale will generally persist in using additional tubular goods on the whole as well as on a per-well basis. The growth of materials and fluids demand will be equal to that of the drilling consumables and equipment, which reflects the severe demands in the material of the wells, which will be drilled in the fresh shale plays. Stimulation products, in particular proppants, which is employed in hydraulic fracturing, will be the leading source of materials and fluids demand.
The service market exploited by the producers of shale gas will achieve $38.7 billion in 2015. Service demand will be led by the pressure pumping and contract drilling, which jointly will form almost two-thirds of total service expenditures in 2015. The service contributors will be continually benefited by the top shale gas drilling activity levels and the improved scale and complexity of the wells in the budding plays. The demand in the remediation services and waste management segments and the production and completion services will be supported by various factors, in which restimulation activity and improved work over in addition to new federal and state laws need further environmental services at well locations.
Source: http://www.freedoniagroup.com/