the networking and knowledge hub for the oilfield minerals

The networking and knowledge hub for the oilfield minerals business

#OilfieldMinerals

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Introduction

Welcomes you to Houston

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• Extensive experience & reputation

• Specialist conferences

• Market research

• Launched in January 2015

Introduction

AT A GLANCE

A-Z GUIDE

WHICH MINERALS

FOR WHICH

MARKETS

• Leading industrial minerals

• Main raw material feedstock

• Key specified chemical component

• World production

• Main source countries

• Leading consuming markets ©IMFORMED 2016 | imformed.com

Introduction

• Moderated by experts

• To engage & serve the industry

• Programmed with intelligence

• And we enjoy it!

About our Forums

Introduction

Conferences 2016

Mineral Recycling Forum 2016 14-15 March, Rotterdam

Mineral Logistics Forum 2016 11-13 April, Rotterdam

MagForum 2016 9-11 May, Vienna

Oilfield Minerals & Markets Forum 2016 5-7 June, Houston

Graphite Supply Chain 2016 13-15 November, Newport Beach

Upcoming Forums

Introduction

©IMFORMED 2016 | imformed.com

Industrial minerals & the oilfield market

• Drilling

• Well cementing

• Stimulation

• Production

• Surface prep/cleaning

A wide range of vital applications

Introduction



A wide range of minerals used

Introduction


Attapulgite

Barite

Bauxite

Bentonite

Borates

Calcium carbonate

Calcium chloride

Diatomite

Garnet

Gilsonite

Graphite

Gypsum

Haematite

Hectorite

Ilmenite

Iron oxide

Kaolin

Lignite

Lime

Magnesia

Magnesium silicate

Magnesium chloride

Mica

Perlite

Potassium chloride

Salt

Sepiolite

Silica sand

Soda ash

Sodium silicate

Vermiculite

Zinc oxide

Zirconia Source: OGP/IPIECA


Drilling fluid composition

Introduction


Source: OGP/IPIECA

Water-based Non-water-based


Introduction


Function Mineral

Weighting agents

high SG; help offset pressure; control

liquid flow into wellbore from

formation; keep the hole open

barite, haematite, calcium

carbonate

Bridging agents

plug pore spaces at wellbore,

restricting invasion of solids and fluids

into the formation

calcium carbonate, salt

Viscosifiers

Carry cuttings to surface; build a cake

against permeable formations;

lubricates drill string.

sodium bentonite, treated calcium

bentonite for freshwater muds;

attapulgite and sepiolite for

saltwater muds; organophillic

clays for oil muds

Stabilisers

Prevents dissolution of formation

Gilsonite, salt, gypsum

Pimary mineral applications


Introduction


Function Mineral

Lost circulation materials

used to plug or seal pores and cracks

in the formation

Gilsonite, mica, diatomite,

expanded perlite and vermiculite

(bentonites, organophilic clays)

Cross-linker

Hydrated polymers or gels (guar gum)

are cross linked by borate ions to

provide increased viscosity. Benefits

include, good proppant transport,

stable fluid rheology at high

temperatures, low fluid loss, and good

clean up properties.

sodium borates

Lubricants

Lubrication of drill bit and drill pipe

graphite, bentonite

Proppants

Hold open fractures to enable oil and

gas flow (conductivity)

silica sand, calcined bauxite,

calcined kaolin, magnesium silicate

Introduction


500

1500

2500

3500

4500

5500

6500

7500

4000

5000

6000

7000

8000

9000

10000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

World barite production

Int. rig count

US rig count

000’s tonnes Rig count

Data sources: USGS; Baker Hughes

Drill rig count vs. barite production 2000-2015

Barite & the oilfield market

US rig count activity decline

Introduction


US rig count decline of around 80% from October 2014 peak

Source: WTRG Economics; Baker Hughes; EIA

US$50-55/bbl

“operational

rate”

Introduction


New Dawn rises for oilfield market?

EIA February 2016

Forecast a return to market balance

in the second half of 2017.

IEA April 2016

Oil markets, and prices, to rebalance

at the turn of this year, or by 2017 at

the latest.

“I have all the reasons to believe that in

the absence of a major economic

downturn we are going to see balance

in the markets latest by 2017.”

Fatih BirolI, Executive Director, IEA

Introduction


Prices to 3 June 2016

Source: Oilprice.com

Oil price rises 2016

WTI $48.62 Brent $49.64

Introduction


US rig count activity recovery

Source: WTRG Economics; Baker Hughes; EIA

• Bottoming out in 380-400 in July 2016? Then slow recovery

• In last four major oil crash/recovery events, rig count has an average 3-4 month

lag in response to oil price change

The world needs energy

Introduction


• Growth in world economy = more energy

required

• Energy consumption to rise 34% to 2035.

• Most additional energy is consumed in fast-

growing emerging economies (China, India)

• Energy demand in OECD barely grows.

• Fossil fuels remain dominant source of

energy; 60% of energy growth; almost 80%

of total energy supply in 2035.

Source: BP Energy Outlook 2016

Energy mix changes to 2035

Introduction



Oil & gas supply to 2040

Introduction

EIA May 2016

• Fossil fuels to supply >75% of world energy use in 2040.

• World energy consumption is projected to increase by 48% over the next three

decades, led by strong increases in the developing world, especially in Asia

©IMFORMED 2016 | imformed.com Source: EIA, International Outlook May 2016

Energy demand growth in Asia

Introduction


Source: IEA World Energy Outlook November 2015

• By 2040 India’s energy demand closes in on that of USA, even though

demand per capita remains 40% below world average

• Developing Asia accounts for almost 50% of rise in global gas demand &

75% of increase in imports

Gas supply growth from shale & LNG

Introduction



• Global shale gas output to grow 5.6% to 2035 (24% of total gas output)

• Dominated by North America, about two-thirds of the increase in global shale

gas supply

Global shale gas outlook

Introduction


• But shale gas output expected to expand outside North America

Sources of shale gas supply

Introduction


• 2025-35 around half of the increase in shale

gas supplies comes from outside North

America

• Most notably in Asia Pacific accounting for

>10% of global shale gas production by 2035

• Especially China, where shale gas production

reaches 13 Bcf/d by 2035.

• By 2035, China will be the largest contributor

to growth in shale gas production.


Introduction


Outlook

• We are close to bottoming out: best case mid-2016, worst case early 2017

• Industry has recovered from previous crises, taking about 3 years to

reach parity with or near previous peak

• So best case mid-2019, worst case 2020-21; possible guide = oil

price recovery followed 3-4 months later by rig actvity recovery

• Overall long term assured demand for oil and gas drilling to 2035 –

and thus demand for oilfield minerals

• Higher activity in India, China, Asia Pacific, MENA especially for gas

• Continued demand from N. America shale development, with growing activity

in China, India, and MENA (possibly joined by Europe/Argentina) – with

associated demand for proppant supply in those regions

• Natural gas and LNG rise in demand, could prompt emergence of gas

producers and associated drilling and fracking activity, eg. China, MENA,

Australia

Introduction


Programme – Monday Morning

OVERVIEWS: MARKET DEMAND| LOGISTICS

08:30 Introduction

Mike O’Driscoll, Director, IMFORMED, UK

08:45 Oilfield mineral consumption trends

Chris Bosch, Category Manager of Mined Products, Halliburton Baroid, USA

09:15 Drilling and drilling fluid developments

Brian Teutsch, Product Line Director, Drilling & Completion Fluids, Baker Hughes Inc., USA

09:45 Shipping costs: never so low since the age of the Vikings

Jesper Hoppe, Managing Director, Viking Shipping Co. A/S, Norway & Morten Petersen,

Managing Director, Viking Shipping Co. (Hong Kong) Ltd

10:00 Logistical challenges and solutions for oilfield minerals

Richard Dodd, President, RDC Logistics, USA

10:30 COFFEE

BORATES | POTASH

11:30 Borates in oilfield applications

David Schubert, Principal Scientist, US Borax Inc., Rio Tinto, USA

12:00 Potash and its application in oilfield drilling

Jeff Blair, Director of Potash, Intrepid Potash, USA

12:30 LUNCH

Introduction


Programme – Monday Afternoon

PROPPANTS 1: SELECTION | DUST CONTROL

14:00 Developments in proppant selection for hydraulic fracturing

Pickard Trepess, Managing Director, FracPT FZE, UAE

14:30 Reducing silica dust with proppant coating technology

Paul Williams, Vice President of Technology and Innovation, ArrMaz, USA

15:00 COFFEE

PROPPANTS 2: CERAMIC PROPPANTS

15:30 Manufacturing ceramic proppant during the downturn

Jim Flowers, VP Sales, Marketing and Innovation, Imerys, USA

16:00 New generation ceramic proppants

Dr David Henson, President, LWP Technologies LLC, USA

16:30 Ceramic proppant manufacturing

Joe Roettle, Global Sales Manager, Ecutec Barcelona SL, Spain

17:00 CLOSE OF DAY 1 & Drinks Reception

Introduction


Programme – Tuesday Morning

BARITE 1: MOROCCO | INDIA | PROCESSING

08:30 Broychim & Moroccan barite production

Imane Moudnib, Marketing Manager, Broychim & Abdelaâli Lefdaoui, Chief Mining Activities

Division, Dept. of Energy & Mines, Morocco

09:00 The role of APMDC in the international barytes market

Ravi Kumar Vemuru, Advisor to the Andhra Pradesh State Government, India

09:30 Developments in barite beneficiation

Steve Gray, Consultant, ST Equipment & Technologies LLC, USA

10:00 Advances in biopolymer chemistry and selected applications in the oilfield

Charles Landis, Executive Vice-President, Technology Development, HPPE LLC, USA

10:30 COFFEE

Introduction


Programme – Tuesday Morning

BARITE 2: CHINA

11:30 China’s barite industry status and analysis

Bill Wang, Director & General Manager, Guizhou Sinobarite Mining Co. Ltd, China

12:00 Guizhou Gulf Co. Ltd: the new force in supplying Chinese barite

Rocky Wu, Managing Director, Grant Lee, Director, Guizhou Gulf Co. Ltd, China, and

Ian Wilson, Consultant, UK

12:30 Chinese barite: how to find opportunities in the downturn

Rita Hu, General Manager, Guizhou Saboman Imp. & Exp. Co. Ltd, China

13:00 LUNCH & CLOSE OF CONFERENCE

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the networking and knowledge hub for the oilfield minerals

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