US demand for oil and gas well stimulation materials is projected to increase 14 percent per year to $7.35 billion in 2014, buoyed by renewed efforts to reduce dependence on foreign energy sources, particularly from unfriendly or unstable countries. Well stimulation is necessary in order to maximize the output from aging US oil and gas fields, and to optimize production in unconventional settings such as tight gas, shale and coal bed methane. These and other trends, including market share and product segmentation, are presented in Well Stimulation Materials, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Overall, gains for proppants and other stimulation materials will result from the recovery of US oil and gas production activity, which plummeted in 2009 after a precipitous decline in prices. With prices so low, there was little incentive to increase production, and oilfield activity shriveled. The US active rig count, which had topped 2,000 in mid-2008, dropped to less than 900 in 2009 before beginning to rebound later in the year. Continue reading »