guar international 2014 october 2014
DESCRIPTION
Guar International 2014 October 2014. Overview of PfP. Established in 2001 as PfP Technology 2 nd Largest provider of guar to oilfield in the world Also provide stimulation chemicals to sector PfP Industries established in 2014. Vertical Integration. United States Network. - PowerPoint PPT PresentationTRANSCRIPT
Overview of PfP
• Established in 2001 as PfP Technology
• 2nd Largest provider of guar to oilfield in the world
• Also provide stimulation chemicals to sector
• PfP Industries established in 2014
Vertical Integration
IGP
• Secure and process guar powder• Foundation of vertical integration
PfP Technolo
gy
• Supply of guar gum and related products • Face of vertical integration
Optiblen
d Industrie
s
• Blending, storage and distribution solutions • Footprint of vertical integration
Roughnec
k Equipme
nt
• On site storage/blending solutions• Final step of vertical integration
United States Network
Simple Schematic of Hydraulic Fracturing Process
Shale oil and gas refers to the hydrocarbons that are trapped within shale formations. Shales’ are fine-grained sedimentary rocks that can be rich sources of oil and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale oil and gas that were previously uneconomical to produce. The production of oil and gas from shale formations has rejuvenated the U.S. oil and gas industry and presents opportunity to many other countries around to globe which contain untapped shale resources.
North America Average Rig Count
Year 2008 2009 2010 2011 2012 2013 YTD
Vertical 954(51%)
443(41%)
501(32%)
574(31%)
613(31%)
448(25.5%)
Horizontal 553(29%)
456(42%)
882(57%)
1074(57%)
1,175(59%)
1,109(63%)
Directional 372 190 173 231 214 203
Total 1,879 1,089 1,546 1,879 1,992 1,760
What is Shale Oil and Gas?
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20143
4
5
6
7
8
9
30
35
40
45
50
55
60
65
70
Crude OilNatural Gas
Oil,
MBP
D
Gas,
Bcf
Gas Production Change2005 – 2013: 34%2010 – 2013: 14%
Oil Production Change2008 – 2013: 46%2010 – 2013: 33%
US Oil and Gas Production
General Commentary
• Not Nostradamus, but expect a steady, controlled growth in US oilfield – maybe 10% annual growth – natural gas is wildcard
• US rig count doesn’t tell the whole story – drilling efficiencies and increase in stages
• Another 2011/2012 – guar market still recovering from 2011/2012 price spikes
• Going cheap – E&P companies in US cutting costs • International – US will continue to grow, but international is real
upside
Global Opportunity
Where is the Next Big Thing?
Rank Country Shale Oil (billion barrels) Rank Country Shale Gas (trillion cubic feet)1 Russia 75 1 China 1,1152 US 58 2 Argentina 8023 China 32 3 Algeria 7074 Argentina 27 4 US 6655 Libya 26 5 Canada 5736 Australia 18 6 Mexico 5457 Venezuela 13 7 Australia 4378 Mexico 13 8 South Africa 3909 Pakistan 9 9 Russia 285
10 Canada 9 10 Brazil 245World Total 345 World Total 7,299
Top 10 Countries with Technically Recoverable Shale Oil and Gas ResourcesShale Oil Shale Gas
Oilfield Guar SWOT
Opportunities• Natural Growth in US Market• Increased Performance• International Market
Strengths• Nothing Truly Comparable• Familiar/Field Tested• Affordable
Weaknesses• Price Instability• Hard Market to Predict• Mother Nature
Threats• Slickwater/FR• Lack of Quality to Keep up with
Demand• Alternative Polymers• Another 2011/2012
