Frac stack market is dependent on the well stimulation to avoid early abandonment when productivity decreases as a result of formation damage or low natural permeability. Hydraulic fracturing is gaining momentum in the market and is majorly dominated by North America. Low oil prices slammed completion and well stimulation activities resulting in weak balance sheets for frac companies. This resulted in frac companies halting investment (resulting in a large number of uncompleted wells), working on spare parts inventories and cannibalizing idled units. Such conditions resulted in weak demand for new parts or whole equipment. However, in 2017 with the strengthening of crude oil prices and improving financials of service providers, the number of completed wells in the United States (around 69% of the oil & gas wells were hydraulically fractured horizontal wells in 2016), the largest market, increased by about 40% in 2017 from 2016 level.
Increasing Exploitation of Unconventional Reserves
Crude oil & natural gas from conventional resources from has been the major source to meet the increasing demand for energy globally. However, most of the conventional oilfield are aging at a faster rate than the rate of replacement and won’t be able to meet the growing energy demand. Global crude oil discoveries declined by around 73% in 2016 from the average of 9 billion barrels annually over the past 15 years and demand is expected to grow by 1.2 mb/d in the next four years. As a result, several operating companies have shifted their focus towards the exploitation of unconventional reserve such as shale and tight gas reserve. And these reserves are required to be fractured initially for economical production. The United States is the largest market for exploitation of unconventional reserves, and a large share of crude oil & natural gas is produced from it. Apart from the US, Canada, and China have also started to exploit their unconventional reserve to meet their increasing demand. Increasing exploitation of unconventional reserve is expected to create significant demand for a drilling rig in the market.
Increasing Fracturing in Onshore Segment
The onshore sector has accounted for around 70% of the global crude oil production. The demand for fracturing is growing to maintain or increase production from existing fields and the increasing popularity of unconventional reserve such as shale and tight ones. Permian shale accounted for the major share of the new oil produced in the world in the recent times. In the United States, horizontal drilling coupled with hydraulic fracturing has contributed majorly to the growth of crude oil and natural gas production, which grew at 3.5% and 1.4% annually between 2014-2017. Recently, Saudi Aramco has begun producing shale gas from one location and is exploring in the North Arabia basin, the South Ghawar basin and the Jafurah basin. Gaining popularity of hydraulic fracturing technology in outside North America is driving the onshore segment.
North America is one of the Largest Market
North America is one of the largest markets for the frac stack led by the United States mainly due to increased exploitation of its shale reserve which is fractured for economical production. During the downturn, frac companies switched to use spare parts and began cannibalizing idled units resulting in sluggish demand for new equipment. However, with the recovery in prices in 2017, the hydraulic fracturing market size almost doubled from 2016, resulting in higher demand for the frac stack. On an average 1,145 wells were completed in the United States in the first six months of 2018. The country has a large inventory of wells which are drilled but uncompleted mainly due to lack of investment in the past. This inventory creates a huge opportunity for the frac stack market as the positive spending outlook is expected to speed up the completion rate.
The major players include - Oil States Energy Services, Stuart Pressure Control, CCSC Petroleum Equipment LTD CO., Shengji Group, Schlumberger Limited, PangTong Wellhead USA Inc., and Yantai Jereh petroleum Equipment & Technologies Co., Ltd. amongst others.
Reasons to Purchase this Report
- Current and future frac stack market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments and strategies employed by the major market players
- 3 months analyst support along with the Market Estimate sheet (in excel)
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1. Executive Summary
2. Research Methodology
2.1 Scope of Study
2.2 Market Definition
2.3 Study Assumptions
2.4 Study Deliverables
2.5 Research Phases
3. Market Overview
3.2 Well Completion Design and Product Requirements Analysis, Permian Basin, 2014-2017
3.3 North America Frac Hydraulic Horsepower, 2005-2018
3.4 Key Companies Providing Frac-Related Equipment or Services (Pumps, Iron, Trees, Frac, Wireline, Flowback)
3.5 Frac Spending per New Well Drilled (2005-2018)
3.6 Oilfield Equipment Rental Market Scenario
3.7 Frac Stack Market Size and Demand Forecast until 2023
3.8 Hydraulic Fracturing Equipment Market Size and Demand Forecast until 2023
3.9 Global Completion Equipment Market Size and Demand Forecast until 2023
3.10 Key Upstream Projects
3.11 Recent Trends and Developments
4. Market Dynamics
5. Supply Chain Analysis
6. Industry Attractiveness - Porter's Five Force Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Product and Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.2 By Location of Deployment
7.2 By Well Type
7.2.1 Horizontal & Deviated
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1 North America
8.3 South America
8.5 Middle-East & Africa
9. Key Company Analysis (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
9.1 Equipment Manufacturers
9.1.1 Oil States Energy Services
9.1.2 Stuart Pressure Control
9.1.3 CCSC Petroleum Equipment LTD CO.
9.1.4 Shengji Group
9.1.5 Schlumberger Limited
9.1.6 PangTong Wellhead USA Inc.
9.1.7 Yantai Jereh Petroleum Equipment & Technologies Co., Ltd.
9.2 Fracturing Service Providers
9.2.1 Halliburton Limited
9.2.2 Schlumberger Limited
9.2.3 Baker Hughes a GE Company
9.2.4 Calfrac Well Services Ltd.
9.2.5 FTS International
9.2.6 C&J Energy Services
*List not Exhaustive
10. Competitive Landscape
10.1 Mergers and Acquisitions, Joint Ventures Collaborations and Agreements
10.2 Strategies Adopted by Key Players
**Subject to availability on public domain