ASIA PACIFIC
OILFIELD CHEMICALS MARKET 2014 - 2019 Market Shares, Forecasts & Trends
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TABLE OF CONTENTS 1. Introduction 1.1 Description 1.2 Research Methodology 1.3 Report Outline
2. Executive Summary
3. Market Overview 3.1 Current Market Scenario 3.2 Factors Driving the Oilfield Chemicals Market 3.2.1 Demand for Oilfield Chemicals Bolstered through Growing Crude Oil Production 3.2.2 Oilfield Chemicals Being Driven by Shale Gas Exploration and Production 3.2.3 Environment-Friendly Chemicals Being Developed Due to Stringent Regulations 3.3 Factors Restraining the Oilfield Chemicals Market 3.3.1 Environmental Sustainability in Shale Gas Extraction 3.4 Opportunities for the Oilfield Chemicals Market 3.4.1 New Horizons Opened Up Due to Deep Water Drilling Operations 3.4.2 Nanotechnology’s Prospects Bright in Cementing Applications 3.4.3 Productive Opportunities Provided by Developing Regions 3.5 Porter’s Five Forces 3.5.1 Bargaining Power of Suppliers 3.5.2 Bargaining Power of Consumers 3.5.3 Threat of New Entrants
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3.5.4 Threat of Substitute Products and Services 3.6 Industry Value Chain Analysis 4. Market Segmentation 4.1 By Chemical Type 4.1.1 Biocides 4.1.2 Corrosion & Scale Inhibitors 4.1.3 Demulsifiers 4.1.4 Polymers 4.1.5 Pour-Point Depressants 4.1.6 Surfactants 4.1.7 Other Chemicals 4.2 By Application 4.2.1 Cementing 4.2.2 Drilling 4.2.3 Enhanced Oil Recovery 4.2.4 Production 4.2.5 Well Stimulation 4.2.6 Workover & Completion
5. Asia-Pacific Market Analysis 5.1 China 5.2 India 5.3 Others
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6. Policies and Regulations
7. Competitor Analysis 7.1 Market Shares of Leading Global Players 7.2 Strategies Adopted by Leading Global Players
8. Company Profiles 8.1 AkzoNobel NV 8.2 Albemarle Corp 8.3 Ashland Inc 8.4 Baker Hughes Inc 8.5 Canadian Energy Services & Technology Corp 8.6 Clariant AG 8.7 Croda International Plc 8.8 Dow Chemical Company 8.9 E.I. DuPont De Nemours & Company 8.10 Elementis Plc 8.11 Flotek Industries Inc 8.12 Halliburton 8.13 Kemira Oyj 8.14 Lamberti Group 8.15 Messina Inc 8.16 Nalco Champion Technologies Inc 8.17 Newpark Resources Inc 8.18 Schlumberger Limited
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8.19 M-I SWACO 8.20 Solvay SA 8.21 Stepan Company 8.22 The Lubrizol Corporation 8.23 Weatherford International Ltd 8.24 Zirax Limited
9. Appendix
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RESEARCH METHODOLOGY
The research methodology can be put into the following sequence: 1) Secondary Research: Information was collected from a number of public and paid data sources. Public sources involved Ministry of Oil and Natural Gas- India, ESDM, Malaysian Oil and Gas Service Council, Department of Mines and Petroleum – Australia, company annual reports, white papers and research publications by recognized industry experts. Paid data sources include authentic industry databases. 2) Primary Research: After collecting data from secondary sources, primary interviews were conducted with stakeholders at different points of the value chain like manufacturers, distributors, companies producing chemicals, end-product users and key opinion leaders of the industry. Primary research was used both to validate the data points obtained from secondary research and to fill the data gaps after secondary research.
3) Market Engineering: The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
4) Expert Validation: The market engineered data is verified and validated by a number of experts, both in-house and external.
5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report. Asia Pacific Oilfield Chemicals Market | Sample
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3. DRIVERS 3.2.2 OILFIELD CHEMICALS BEING DRIVEN BY SHALE GAS EXPLORATION AND PRODUCTION
Australia, China, India and Indonesia have taken tentative steps to explore their shale gas and oil potential, including drilling wells. This increase in drilling and production has resulted in higher volumes of drilling, stimulation, and cementing chemicals. The Asia-Pacific market is expected to show strong growth of in the drilling, cementing, and stimulation markets, while production chemicals will grow more slowly due to much of the new development coming from shale gas fields. From producing 30 million cubic meters of natural gas from shale formations in 2012, China produced 200 million cubic meters in 2013, which was about 0.2 percent of China’s total natural gas production. China's shale gas production in 2014 is expected to surpass 1.5 billion cubic meters, 7.5 times that of 2013. China has a goal of producing 6.5 billion cubic meters of shale gas in 2015, which would equal 5.5 percent of total 2013 gas production. By the end of July, 2014 the country had invested US$3.25 billion on exploiting 54 possible shale gas fields, According to estimates of the petroleum and natural gas ministry, by 2015-16, India’s demand for gas is set to rise to 162 (billion cubic metres) bcm per year against a partial increase in the domestic supply to 43 bcm per year and higher imports of 60 bcm per year. Shale gas production would reduce the supplydemand gap. Companies including Reliance Industries Limited (E&P), RNRL, Vikas WSP Limited have expressed interest in exploring in India, which is estimated to hold 500 to 2000 trillion cubic meter of recoverable shale gas. Six main basins have been identified that could be successfully exploited:
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Cambay (Gujarat), Assam-Arakan (North-East), Gondwana (Central India), Krishna Godawari onshore (East coast), Cauvery onshore, and Indo-Gangetic basins. India’s first shale gas well was inaugurated in November, 2013 in Ankleshwar, Gujarat by the Oil and Natural Gas Corp. Ltd. (ONGC) and it planned to explore 30 additional shale gas wells in India over the next two years investing about USD $100 million.
The following table lists the total shale gas production in Asia Pacific by million cubic metres and respective chemicals consumed in these operations in million USD. Total Shale gas Production (mcm) and Chemicals consumed (million USD)
Chemicals
2013
2014
2015
2016
2017
2018
2019
2020
CAGR%
Shale Gas Production
xx
xx
xx
xx
xx
xx
xx
xx
xx
Drilling Chemicals
xx
xx
xx
xx
xx
xx
xx
xx
xx
Stimulating Chemicals
xx
xx
xx
xx
xx
xx
xx
xx
xx
Coil Tubing Chemicals
xx
xx
xx
xx
xx
xx
xx
xx
xx
Cementing Chemicals
xx
xx
xx
xx
xx
xx
xx
xx
xx
Production Chemicals
xx
xx
xx
xx
xx
xx
xx
xx
xx
Workover Fluids
xx
xx
xx
xx
xx
xx
xx
xx
xx
Others
xx
xx
xx
xx
xx
xx
xx
xx
xx
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8.12 HALLIBURTON 3000 North Sam Houston Parkway East Houston, TX 77072 Phone: 281-871-2699 Website: http://www.halliburton.com
COMPANY OVERVIEW Founded in 1919, Halliburton Halliburton is the second largest player in the oilfield services segment after world leader Schlumberger providing a range of services and products for the exploration, development, and production of oil and natural gas to worldwide oil and gas companies. With more than 80,000 employees, representing 140 nationalities in approximately 80 countries, the company serves the upstream oil and gas industry throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.
Halliburton comprises 13 product service lines (PSLs). The PSLs operate in two divisions: Drilling and Evaluation, and Completion and Production. PSLs are primarily responsible and accountable for strategy, technology development, process development, people development and capital allocation. The Completion and Production segment offers production enhancement services, including stimulation services and sand control services; and cementing services comprising bonding the well and well casing, and casing equipment. It also offers completion tools that provide downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, and service tools. This segment also provides well intervention services, pressure control, equipment rental tools and services, and pipeline and process services; and oilfield production and completion chemicals and services that address production, processing, and transportation operations.
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The Drilling and Evaluation segment offers drill bits and services, including roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services; wireline and perforating services, such as open-hole logging, cased-hole and slickline, borehole seismic, and formation and reservoir solutions; and testing and subsea services comprising acquisition and analysis of reservoir information and optimization solutions. This segment also provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; integrated exploration, drilling, and production software, as well as related professional and data management services; and oilfield project management and integrated solutions. A slowdown in shale gas exploration activity in the U.S. forced by low gas prices in North America is hastening the company to push for markets outside the country. In Asia-Pacific, an important market for the oil field services industry, Halliburton meets the market demand for the hydrocarbon industry services sector. The recent development of significant reserves in deepwater and unconventional assets in the region is key to expansion of investments in the region. Halliburton already has close to 5,500 employees in the Asia Pacific region and is looking to capitalise on the future efforts to explore unconventionals in countries like Indonesia, Malaysia and Australia. This is expected to boost rig counts in the region over the next few years.
KEY FINANCIALS The total revenue of the company was USD $29,402 in 2013. The total revenue in Asia, in 2013 was USD $5056 million, up from USD $4295 million in 2012, an increase of 18%. The revenue from Completion and Production segment was USD $2112 million compared to $1709 in 2012, increasing by 24%. The revenue from Drilling and Evaluation segment was USD $2944 million compared to $2586 in 2012, increasing by 14%. The total revenue from Asia, in 2013 was 17.2 % of the global revenue in 2013, up from 15% of the global revenue in 2012. The total operating income from Asia in 2013 was USD $865 million, up from USD $687 million in 2012, an Asia Pacific Oilfield Chemicals Market | Sample
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increase of 26%. Asia Pacific contributed to 27.5% of the global operating income, thus proving to be one of the most profitable and fastest growing regional segments for the company.
Revenue in Asia improved by 18% due to higher drilling activity and higher wireline activity in Australia, Indonesia, and China, strong demand in Indonesia, increased completion tools sales in Malaysia and higher demand for cementing services in Thailand. Operating income in Asia increased by 26% due to higher direct sales in China, improved profitability and stronger demand in Indonesia, region, higher drilling activity and higher wireline activity throughout the Asia Pacific region.
Table: Halliburton Financial Performance by Region Completion and Production Revenue by Region 2013
2012
Total
XX
XX
North America
11,417
12,157
Latin America
XX
XX
Europe/Africa/CIS
2,391
2,099
Middle East/Asia
XX
XX
Drilling and Evaluation Revenue by Region Total
XX
XX
North America
3,795
3,847
Latin America
XX
XX
Europe/Africa/CIS
2,834
2,411
Middle East/Asia
XX
XX
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Table: Halliburton Operating Income by Region Completion and Production Operating Income by Region 2013
2012
Total
XX
XX
North America
1,916
2,260
Latin America
XX
XX
Europe/Africa/CIS
356
347
Middle East/Asia
XX
XX
Drilling and Evaluation Operating Income by Region 2013
2012
Total
XX
XX
North America
656
680
Latin America
XX
XX
Europe/Africa/CIS
334
346
Middle East/Asia
XX
XX
Table: Halliburton Total Revenue Revenue by Segment
2013
2012
Completion and Production
XX
XX
Drilling and Evaluation
11,896
11,123
Total Revenue
XX
XX
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Figure: Halliburton Revenue Share by Region
Halliburton Revenue Share by Region (%)
North America
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