Oilfield Equipment & Service Markets: US Land...

Oilfield Equipment & Service Markets:US Land 2013-2017

Revised Q1 2016

Spears & Associates/Oilfield Logix: US Land Oilfield Equipment & Service Market

8908 South Yale, Suite 440 Tulsa, Oklahoma 74137 USA

1.918.496.3434 www.spearsresearch.com

Richard Spears, Principal Researcher [email protected]

http://www.spearsresearch.com/

mailto:[email protected]

Table of ContentsSpears & Associates/Oilfield Logix: US Land Oilfield Equipment & Service Market

2

Executive Summary 3

Drilling Activity 7

Quarterly Horizontal Drilling 17

Land Contract Drilling 27

Measured Depth 37

Days-To-Drill 45

Drill Bits 53

Drilling Fluids 62

Bottom Hole Temperature 72

Directional Drilling 80

Directional Performance 90

Horizontal Lateral Length 98

Cement Market 106

Cement Per Well 116

Wireline Market 124

Hydraulic Fracturing Market 134

Proppant vs. Lateral Length 144

Proppant Per Well 152

Proppant Demand 160

Lag Time – TD to Frac 169

Other Products & Services 177

Appendix 184

Executive Summary: Q1 2016Spears & Associates/Oilfield Logix: US Land Oilfield Equipment & Service Market

3

US drilling activity…peaked in Q4 2014 and will likely trough Q2 2016. New horizontal well drilling in 2014 was 24,000, falling to 14,000 in 2015 and just 10,000 in 2016.

Most active E&P companies…Marathon, Anadarko, Chesapeake, OXY, Pioneer, Devon, Apache, Southwestern, Continental Resources, ConocoPhillips, EOG, Antero, EQT, Newfield.

Contract drilling market…peaked at $22B in 2014 and will fall below $7B in 2016. PTEN, NBR & H&P lead the pack.

Drilling fluids…peaked at $6.3B in 2014, falling to $2.6B in 2016. Leaders are SLB, Anchor and HAL.

Hottest wells…are in North Louisiana (Haynesville) and South Texas. Both regions exceed 350 F below 10,000’.

Directional drilling…peaked at $4.2B in 2014 and will fall to $1.7B in 2016.

New horizontal laterals…are about 300’ longer each year. 10,000’ laterals are now found in most basins.

Cementing…peaked at $7B in 2014, falling to $2.8B in 2016. Top 3 are HAL, SLB and BHI, with strong independents. Most wells use 2,000-4,000 sacks of cement, with 2,750 sacks being the most common.

Hydraulic fracturing…peaked at $30B in 2014, falling to under $12B in 2016. Top 3 are HAL, SLB and BHI, with strong independents who, as a group, are losing share. 4-6 million pounds of sand is average per well.

Wireline…fell from $6.7B in 2014 to $2.7B in 2016. Formation evaluation was never big, but plug & perf suffers.

Lag time from TD to frac…ranges from about 60 days in Texas & Oklahoma to 100-150 days in the Rockies and the Bakken. Even at today’s low level of drilling, that leaves 2,500 drilled, but uncompleted on any given day.

Drilling Activity

4


Total US LandSpears & Associates/Oilfield Logix: US Land Oilfield Equipment & Service Market

5

New Wells Drilled

0

12,500

25,000

37,500

50,000

2013 2014 2015 2016 2017

AnadarkoEOGSouthwesternContResNewfieldMarathonOXYDevonWhitingExxon/XTOConocoPhillipsCHKBHPApacheHessAnteroEQTPioneerOther

Quarterly Horizontal Drilling

6



7

New Horizontal Wells Drilled

0

1750

3500

5250

7000

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Quarterly Change (%)

-30%-23%-15%-8%0%8%

15%23%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Land Contract Drilling

8



9

Land Drilling Market (Millions)

$0

$7,500

$15,000

$22,500

$30,000

2013 2014 2015 2016 2017

Helmerich & PaynePrecision NaborsPatterson-UTIPinnergyLewis PetroBig 6 DrillingCC ForbesKrutexOrion DrillingPioneerTrinidadUnitOther

Measured Depth

10


South Texas/Eagle FordSpears & Associates/Oilfield Logix: US Land Oilfield Equipment & Service Market

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Measured Depth Distribution

Num

ber

of W

ells

in S

ampl

e

0

20

40

60

80

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

14000

15000

16000

17000

18000

19000

20000

21000

22000

23000

24000

25000

Vertical WellsHorizontal Wells

Days-To-Drill

12



13

Days-To-Drill

Day

s to

Dri

ll

0

25

50

75

100

Well Depth

'- 5,500 11,000 16,500 22,000

Drill Bits

14



15

Drill Bit Market (Millions)

$0

$40

$80

$120

$160

2013 2014 2015 2016 2017

Hole Size Distribution

Other 3%

6.5 1%

9.625 1%

17.5 1%

14.75 1%

6.125 1%13.5

2%

7.875 3%

9.875 4%

6.75 6%

12.25 15%

8.5

8.75 41%

Drilling Fluids

16



17

Drilling Fluids Market (Millions)

$0

$1,750

$3,500

$5,250

$7,000

2013 2014 2015 2016 2017

Brine 18%

Water 57%

Oil 26%

Directional Performance

18



19

Other 9%

SciDrlg 2%

Pro-D 2%

MWD Sol 3%Weatherford

3%

CJES 3%

DDC 3%

BHI 4%

Aim 5%

Precision 6%

MS 7%

Leam 8%

SLB 9%

Halliburton 9%

Premier 18%

Feet Drilled Per Day

SciDrlg

BHI

Premier

Nomac

HAL

SLB

Crescent

Aim

Pro-D

Precision

Leam

DDC

MWD

WFT

Archer

0 400 800 1200 1600

Horizontal Lateral Length

20



21

Lateral Length Distribution

Num

ber

of W

ells

in S

ampl

e

0

10

20

30

40

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500

9000

9500

10000

10500

11000

11500

12000

Increasing by 200’ per year

Oilfield Equipment & Service Markets: US Land...

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