US demand for products and services used in the development of shale gas and tight oil reservoirs is forecast to surpass $90 billion in 2017, according to a new report by RNRMarketResearch.com.The rapid growth in production from these unconventional resources continues to have a ripple effect throughout the US economy. After years of declines, US crude oil production is rising again and abundant low cost natural gas resources are rejuvenating the US manufacturing sector. This will provide opportunities for oilfield service companies across the board and will continue to require large amounts of chemicals, proppants, and essential equipment such as drill bits, tubular goods, and well logging equipment.

Demand for products will be driven not only by overall levels of industry activity but also by increasing well depths and continued efforts to maximize well output and heighten drilling and completion efficiency. The continued usage of high volume hydraulic fracturing will require significant amounts of fracturing fluids and proppants as well as pressure pumping services. As plays enter the development stage, operators will work to optimize their process designs, which will lead to continuing changes in the types of proppants and fluids used. For example, in recent years gelled fluids lost ground to slickwater formulations but now operators are moving away from slickwater in some areas to hybrid fluids or other products that improve well output while minimizing environmental impact. Furthermore, many operators have begun using proprietary water based drilling muds that mimic the performance of oil and synthetic based muds, but at less risk to the environment.

A significant amount of this new unconventional resource development is occurring in areas that were not traditional hotbeds of oil and gas activity. In some cases this resulted in a backlog of wells that needed completion due to a lack of available infrastructure or shortages in completion crews. However, it has also increased regional demand for a number of products used in well drilling and completion and prompted the opening of new regional manufacturing facilities to make these products
Source: RNRMarketResearch.com