U.S. Demand for Shale Gas Products to Reach $52 Billion in 2015
Demand for products and services used in shale gas development will grow to $52 billion in 2015 as industry activity continues to escalate in the emerging Marcellus, Haynesville and Fayetteville shale plays, according to “Shale Gas: Products & Services,” a new study from The Freedonia Group Inc. While shale gas drilling is expected to slow from the rapid buildup of the 2005-2010 period, the industry will reportedly bring more than 8000 new producing wells online through 2015. Increasing demand for drilling and completion products and services for new shale gas wells is expected to be accompanied by growing markets for workover, restimulation and well site reclamation services in those regions where production is maturing.
Demand for drilling equipment and consumables in the shale gas plays will reportedly grow to nearly $7 billion in 2015, led by strong increases in tubular goods, the largest equipment category. Shale operators will continue to consume more tubular goods overall and on a per-well basis. Growth in demand for fluids and materials will match that seen for drilling equipment and consumables, reflecting the intensive material demands of the wells that will be drilled in the newer shale plays. Stimulation products, especially proppants, used in hydraulic fracturing will reportedly be the dominant source of fluids and materials demand.
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