Marketing of Specialty Chemicals to Oil Field Service

Companies

• Objective• Scope• Chemical Industry• Oil Field Chemical Industry• Value Chain• Market Structure• Market Model• Major Firms• M-I Swaco• Baker Hughes• Halliburton• Market Share Analysis• Conclusion

• The chemicals that are used in exploration and various processing stages of gas and oil field are called as oil field chemicals

• The oil field chemicals could be grouped under several groups such as :-

Drilling fluid or mud additivesCement additivesProduction chemicalsOil well stimulation chemicalsProcess chemicals.

Different types of OFS Chemicals• Drilling fluids perform a variety of functions that affect the

drilling efficiency, the drilling rate, and the cost of drilling operations

• Cement and the cementing additives play a critical role in completion of oil and gas wells.

• Production chemicals are used in maintaining the mobility of oil under extreme cold environmental conditions and to prevent corrosion of pipelines by removing any emulsified water present.

• Stimulation fluids are primarily used in improvising the flow of hydrocarbons, while water injection chemicals help in maintaining the required amount of pressure of reservoir and facilitate the oil recovery.

Market Analysis

• The current market for oil field chemicals is majorly dominated by North America.

• The Asia Pacific region could be a potential market as this region has shown sturdy growth for drilling and cementing operations.

• The Middle East countries are expected to be the greatest market in coming years as the countries are investing in the rejuvenation of old oil wells and exploring new regions for oil wells.

• The developing nations such as Brazil, India & China could also be a potential upcoming market for the oil field chemicals owing to recent oil discoveries in deep well drilling

• The specialty oilfield chemicals market is projected to grow at a CAGR of 5.9% between 2014 and 2019 to reach $12.4 billion by 2019.

• North America held the largest share in 2013 with the U.S. leading the region

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MARKET STRUCTURE

MI-SWACO

• Schlumberger owned Company• Focus on Complete Fluid Systems• Market Leader in Drilling Fluids• Connects with the Business Market through

various Conferences, Trade Fairs as well as Research Technical Papers

• Concentrates on Core Competency and positions itself accordingly

BAKER HUGHES

• Positioning – technology innovation & transparent

• Partnership with customers– drilling wells efficiently through innovat– production enhancement – effective life of field solution

• PetroPhase 2014 – ConferencePetroPhase is a conference dedicated to the study of the properties and chemistry of petroleum fluids

• hosted its annual analyst conference– new technology– Problems Solving

HALLIBURTON

• One of the world's largest providers of products and services to the oil and gas industries with operations in approximately 80 countries

• The largest cementing and stimulation service company and is also a major participant in drilling fluids

Two main segments

1) Completion and ProductionProvides cementing, stimulation, intervention, and completion Chemicals. Services in this segment include: optimization of oil and gas production through pressure pumping, fracturing, and acidizing etc2) Drilling and EvaluationProvides field and reservoir modeling, drilling, evaluation, and precise well-bore placement solutions enabling modeling, measurement, and optimization of well construction activities related chemicals

Halliburton Market Share Region Wise

Halliburton and M-I SWACO are market leader in this segment

Strategic Positioning of Halliburton

• More focus on unconventional plays, mature fields and deep water markets by leveraging their broad technology offering to provide value to customers

• Making key investments in technology and infrastructure to maximize growth opportunities

• Exploring opportunities to acquire companies that will enhance or augment their current services and products, including those with unique technologies or distribution networks in areas where they do not already have large operation

• Enter low penetrated markets in developing regions

• Halliburton regularly participates in various conferences related to Oil and Gas Speciality Chemicals to connect its B2B customers.

1) Deep water Operations Conference and Exhibition 2) ADIPEC 20143) PETEX4) IPTC

Company Expertise

M-I SWACO

Halliburton Cementing & Simulation

Baker Hughes

Company Expertise

M-I SWACO Drilling

Halliburton Cementing & Simulation

Baker Hughes Baker Hughes