Hydraulic Fracturing Tools and Players

Part
01
of nine
Part
01

Hydraulic Fracturing - Drilling Market Growth Rate and 2019 Market Size

The growth rate of the hydraulic fracturing drilling market in North America from 2016 to 2019 is 12.02% and the 2019 market size is estimated to be $71.85 billion.

MARKET GROWTH

  • The overall global hydraulic fracturing market is anticipated to have a 12% market growth from 2016 to 2024.
  • The drilling sector of the total hydraulic fracturing market makes up 41.5% of the total market.
  • The market is dominated by North America in terms of market share at 39%.
  • This is because shale oil and gas production in the United States and Canada is expanding each year.
  • Based on the available figures, the market growth of the hydraulic fracturing drilling market in North America from 2016 to 2019 is 12.02%. [calculated in the research strategy section]

DRILLING MARKET SIZE in NORTH AMERICA

  • In 2016, the total value of the hydraulic fracturing market was $316 billion.
  • The market size of the hydraulic fracturing drilling market in North America in 2016 was $51.12 billion, accounting for 39% of the global drilling market. [outlined in the strategy document]
  • Using the information on the global market in 2016, the market share of the drilling sector, and North America as part of the total market, the estimated market size of hydraulic fracturing drilling in North America in 2019 is $71.85 billion. [calculated in the research strategy section]
  • There were around 7,000 new wells drilled in North America in Q4 2018, compared to 4,000 new wells in Q4 2016.
  • Due to the increasing use of drilling tools and equipment and hydraulic fracturing techniques, it only takes 15 days to drill a single well in 2018, compared to 60 days in 1978.

GROWTH DRIVERS

  • The increasing demand for oil as well as the developing concern for natural resources depletion are also driving growth.
  • Additionally, drilling companies are now implementing horizontal drilling to optimize production as it facilitates them to drill numerous wells at the same location.

Research Strategy:

To get the market size of the hydraulic fracturing drilling market in North America in 2019, we initially looked for market reports covering the growth rate during the period 2016 to 2019. As the figure specific to the drilling sector was not available, we changed our approach by first obtaining the overall market size in 2019 based on the available global market value and its growth rate, then the drilling sector growth rate specific to North America.
The global market size of hydraulic fracturing market in 2016 was $316 billion, and we found that the market's growth rate is expected to be 12% from 2016 to 2024. We initially found the 2019 market size as a whole given the available values using a reverse CAGR calculator.

Starting value: $316 billion
CAGR: 12%
Number of periods: 3 years (2016 to 2019)
2019 market size = $443.96 billion
The drilling sector accounted for 41.5% of the total market, and North America accounted for 39% of the total hydraulic fracturing drilling market. Therefore, using the global market size derived for 2019 ($443.96 billion) and these market shares, we can get the 2019 market size of hydraulic fracturing drilling market in North America in 2019.
2019 market size of drilling sector in North America
= derived global hydraulic fracturing market size * market share of the drilling sector * market share of North America
= $443.96 billion * 0.415 * 0.39
= $71.85 billion
Then, to get the growth rate of the hydraulic fracturing drilling market in North America from 2016 ($51.12 billion) to 2019 ($71.85 billion), we used the CAGR calculator with the following values:
Starting value: $51.12 billion (2016)
Ending value: $71.85 billion (2019)
Number of periods: 3 years
CAGR = 12.02%
Part
02
of nine
Part
02

Hydraulic Fracturing - Well Completion Market Growth Rate and 2019 Market Size

The North American market size for the hydraulic fracturing well completion industry is estimated to be about $13.92 billion for 2019 with a growth rate of roughly -2.59% (expressed from 2016 to 2019). The triangulated data, including all information points and rationale used to arrive at these figures, is presented below.

STANDARD MARKET GROWTH RATE

  • Hydraulic fracturing is one of the segments of the oilfield equipment and services market.
  • The hydraulic fracturing market in North America was valued at $41.96 billion in 2013, growing at a CAGR of 4% from 2013 to 2020.
  • By 2020, the market is projected to reach $51.93 billion.

MARKET SIZE — NORTH AMERICA (2015 & 2016)

  • For 2015, the North American market size for well completion was valued at $41,793 million.
  • For 2016, the North American market size for the well completion industry was triangulated to be $39.71 billion. [previously reported data]
  • Hydraulic fracturing accounts for 37% of the total well completion market in North America.
CALCULATION
Based on the above-mentioned data, it is possible to calculate the growth rate for the North American hydraulic fracturing well completion market from 2016 to 2019.
  • The market size for North American hydraulic fracturing well completion market for 2015 = 37% of $41,793 million = $15,463.41 million or $15.463 billion.

MARKET SIZE — NORTH AMERICA (2019)

  • The North American oilfield services market was valued at $115.3 billion in 2018.
  • As mentioned above, the hydraulic fracturing market in North America is growing at a CAGR of 4% from 2013 to 2020.
  • The global oilfield services market is growing at a CAGR of 3.7% from 2018 to 2026.
  • Well completion accounts for 30% of the North American oilfield services market and the hydraulic fracturing accounts for 37% of the total well completion market in North America.
CALCULATION
Based on the above-mentioned data, it is possible to calculate the market size for the North American hydraulic fracturing well completion market for 2019.
  • Assuming that the growth rate for the North American oilfield services market will be somewhere between 3.7% and 4% (average CAGR of 3.85% from 2018 to 2026), we have calculated the market size of the North American oilfield services market for 2019.
  • Therefore, using an online reverse CAGR calculator, for 2019, the market size of the North American oilfield services market would be valued at $119.74 billion.
  • Well completion accounts for 30% of the North American oilfield services market and hydraulic fracturing accounts for 37% of the total well completion market in North America.
  • Therefore, for 2019, the North American well completion market = 30% of $119.74 billion = $35.92 billion.
  • For 2019, the North American hydraulic fracturing well completion market = 37% of $35.92 billion = $13.92 billion.
  • Therefore, the North American market size for hydraulic fracturing well completion market is estimated to be about $13.92 billion for 2019.

GROWTH RATE CALCULATION — NORTH AMERICA (2016 TO 2019)

  • As from the above, the triangulated market size for North American hydraulic fracturing well completion market for 2015 = $15,463.41 million or $15.463 billion. For 2019, the North American Hydraulic fracturing well completion market is estimated to be = $13.92 billion. Now, using the online CAGR calculator, it is possible to calculate the growth rate for the North American Hydraulic fracturing well completion market = -2.59% from 2016 to 2019.
  • As per the "2015 Projected Global Growth Rates for Oilfield Equipment & Services" report, the 2016 growth rate for hydraulic fracturing was -9%. It seems, then, that the market would likely have a negative growth rate in this period and so, the triangulated estimate for the growth rate seems to be near the actual value.
  • Therefore, the growth rate of the hydraulic fracturing well completion market from 2016 to 2019 would be approximately -2.59%.

RESEARCH STRATEGY:

Initial searches were performed through the market research reports since these sources are likely to have preexisting data for the growth rate and market size of the hydraulic fracturing well completion industry for North America; but none of these sources revealed the specified growth rate. However, the research team used previously applied data to find the following statistics which we used to triangulate the market size and growth rate of the hydraulic fracturing well completion market for North America:

1. The hydraulic fracturing market in North America for 2013, 2020 and the CAGR value from 2013 to 2020.

2. The North American market size for well completion for 2015.

3. And, the North American market size for the well completion industry for 2016. (previously triangulated market size of $39.71 billion).

4. The North American oilfield services market for 2018.

5. Well completion accounts for 30% of the North American oilfield services market and that the Hydraulic fracturing accounts for 37% of the total well completion market in North America.

6. The CAGR value of the global oilfield services market from 2018 to 2026.

Part
03
of nine
Part
03

Hydraulic Fracturing - Production Market Growth Rate and 2019 Market Size

The growth rate of the hydraulic fracturing production market in North America from 2016 to 2019 is 11.18%, and the 2019 market size is estimated at $21.816 billion.

MARKET GROWTH

  • The global hydraulic fracturing market is expected to grow at 12% from 2016 to 2024.
  • The production segment of the hydraulic fracturing market represents 9.1% of the total market.
  • North American production market represents 54% of the global hydraulic fracturing production market.
  • An increase in industrialization and commercialization, copulated with growing infrastructure development are some of the factors that will drive the growth of the market.
  • The market is expected to reach $65 billion by 2024.
  • Based on the available figures, the market growth of the hydraulic fracturing production market in North America from 2016 to 2019 is 11.18%.

NORTH AMERICA PRODUCTION MARKET SIZE

  • The estimated market size of hydraulic fracturing production in North America in 2019 is $21.816 billion.
  • In 2016, the total value of the hydraulic fracturing market was $316 billion.
  • The market size of the hydraulic fracturing production market in North America in 2016 was $15.875 billion, accounting for 54% of the global production market. [outlined in the strategy document]

RESEARCH STRATEGY

To get the market size of the hydraulic fracturing production market in North America in 2019, we searched for market reports covering the growth rate during the period 2016 to 2019. As the figure specific to the production sector was not available, we changed our approach by first obtaining the overall market size in 2019 based on the available global market value and its growth rate, then the production sector growth rate specific to North America.

The global market size of the hydraulic fracturing market in 2016 was $316 billion, and we found that the market's growth rate is expected to be 12% from 2016 to 2024. We initially found the 2019 market size as a whole, given the available values using a reverse CAGR calculator.

CALCULATIONS

GLOBAL HYDRAULIC FRACTURING MARKET SIZE
  • 2016 market size (Initial value): $316 billion
  • CAGR: 12%
  • Number of periods: 3 years (2016 to 2019)
  • 2019 market size (Final value) = $443.96 billion
NORTH AMERICA PRODUCTION MARKET SIZE
  • The production sector accounted for 9.1% of the total market, and North America accounted for 54% of the overall hydraulic fracturing production market. Therefore, using the global market size derived for 2019 ($443.96 billion) and the market share, we can get the 2019 market size of the hydraulic fracturing production market in North America in 2019.
  • 2019 market size of the production sector in North America = global hydraulic fracturing market size * market share of the production sector * market share of North America = $443,960,000,000 * 0.091 * 0.54 = $21,816,194,400 ~ $21.816 billion
NORTH AMERICA GROWTH RATE


Part
04
of nine
Part
04

Hydraulic Fracturing - Drilling Key Players

The key players in the North American hydraulic fracturing drilling space are Schlumberger, Baker Hughes, Halliburton, and Weatherford.

Schlumberger

  • Schlumberger Ltd. is the largest oilfield services corporation in the world, employing 100,000 individuals in over 85 nations. For the gas and oil industry, it is a leading supplier of technology for processing, drilling production, and reservoir characterization.
  • In 2018, the company generated $32.82 billion in revenue.
  • The company is headquartered in Sugar Land, Texas.
  • The company was mentioned as one of the global key players in directional drilling in several industry reports, including Mordor Intelligence and Reuters. It is also listed as a global key player in hydraulic fracturing.
  • It has a 3.43% market share in the drilling segment.
  • It is one of the key players of land drilling in North America, in which the company currently attains around 35% of the overall revenue, which is an increase over the 27% it received two years prior.

Baker Hughes

  • The company is headquartered in Houston, Texas.
  • Baker Hughes' 2018 revenue amounted to $22.9 billion.
  • The company was mentioned as one of the global key players in directional drilling in several industry reports, including Mordor Intelligence and Reuters. It is also listed as a global key player in hydraulic fracturing.
  • Additionally, the company is one of the most dominant players within the land drilling sector in North America.
  • In the United States and Canada, the company has a rig count of 855 and 144 respectively.

Halliburton

  • In 2018, the company generated $24 billion in revenue.
  • The company is headquartered in Houston, Texas.
  • The company was mentioned as one of the global key players in directional drilling in many industry reports, including Mordor Intelligence and Reuters. It is also a key global player in hydraulic fracturing.
  • Halliburton is a dominant player within the land drilling sector in North America.
  • North America is Halliburton's largest market despite the delayed activity. Its North American revenue rose to $3.3 billion in Q2 2019, growing about 2% quarter on quarter due to artificial lift and higher stimulation, along with greater drilling activity within the Gulf of Mexico.
  • In 2018, the North American market accounted for about 60% of its revenue.
  • It was also referred to as the Fracking King.

Weatherford

  • Here is a link to its website.
  • The company administers innovative services and technologies specifically meant to satisfy various energy requirements in a manner that is secure, ethical, and sustainable.
  • Weatherford generated approximately $5.7 billion in revenue in 2018.


Research Strategy:

To provide the five key players in the North American Hydraulic fracturing drilling space, we searched through industry reports about the drilling market related to hydraulic fracturing in North America. Websites we searched included Mordor Intelligence, Market Watch, Reuters, and others. We were able to find various global market reports with a geographical focus on North America. Unfortunately, most of these were behind paywall. However, some information was available, and we discovered that North America is the largest market. Hence, we assumed that most of the global key players on this industry may also be the key players in North America.

We listed the companies mentioned in various industry reports and filtered those companies from North America. Then, we identified the key players by their revenue.
Part
05
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Part
05

Hydraulic Fracturing - Well Completion Key Players

Five key players in the hydraulic fracturing well completion business are Chevron Corporation, Schlumberger Limited, Halliburton, National Oilwell Varco, and Newpark Resources. The details are below.

CHEVRON CORPORATION

  • The company has its headquarters in San Ramon, USA, and locations in North America.
  • The company’s official website can be accessed here and shows the company’s use of hydraulic fracturing in its completion of wells.
  • Chevron is a key player in the hydraulic fracturing well completion space based on their estimated annual revenue of $166 billion and its market cap of $215 billion. The company has 48,600 employees.

SCHLUMBERGER LIMITED

HALLIBURTON

NATIONAL OILWELL VARCO

NEWPARK RESOURCES

  • NewPark Resources is based in the US and Canada.
  • The company’s website is accessible here.
  • They are key in the hydraulic fracturing well completion space as their estimated revenue is $946 million, and market cap of $699 million.

RESEARCH STRATEGY
We started this research by first looking at what hydraulic fracturing is and how the segment of well completion works as a specialty in this industry. This led the team to look at market research websites, business websites, as well as news and press releases.

We selected these companies as key players based on their revenue, market cap and number of employees. We reviewed companies in the well completion space, but focused only on those with the highest revenue. We also used other metrics to ensure that they were among the top players. Finally, we ensured that the companies selected had offices in USA and Canada.
Part
06
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Part
06

Hydraulic Fracturing - Production Key Players

Five key players in the North American hydraulic fracturing production space are Halliburton (HAL), Schlumberger (SLB), Weatherford International, FTS International (FTS) and Calfrac Well Services.

NORTH AMERICAN HYDRAULIC FRACTURING PRODUCTION — KEY PLAYERS

Halliburton (HAL)


Schlumberger (SLB)


Weatherford International


FTS International (FTS)

  • Their website can be accessed here.
  • This company is considered "one of the largest well completion companies in North America, specializing in fracturing". In the US, the company has 1,045 employees.


Calfrac Well Services



RESEARCH STRATEGY

In order to identify five key players in the North American hydraulic fracturing production space, we leveraged a compilation of market reports and industry articles. This way, we were able to obtain information on the key players in the worldwide hydraulic fracturing space.

In order to identify those key players that have a strong presence in North America, we extracted those that meet at least two of the following criteria: [1] a large number of locations across North America, [2] a large number of wells drilled in North America and [3] a large number of employees in North America. We took additional time to confirm the identified companies are in the hydraulic fracturing production space, by examining their respective websites.
Part
07
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Part
07

Hydraulic Fracturing - Drilling Key Players Details

The annual revenue for Schlumberger, Baker Hughes, Halliburton and Weastherford ranged from $5.7 billion to $32.8 billion. The details are below.

Schlumberger

  • Schlumberger's 2018 revenue was $32.8 billion. Of that amount, the revenue attributed to drilling was $9.3 billion.
  • Schlumberger provide managed pressure drilling systems, wellheads and drilling rigs. This includes "reservoir-to-flare services" which includes everything from well planning to dealing with oil and mud while drilling. They also have available, land and deepwater high-efficnecy operations.
  • They offer bottomhole assemblies such as drill bits, directional drills, jars and impact tools, reamers and stabilizers, tubular products, casing drills, liner drills.
  • Schlumberger provide additives, drill-in, non aqueous and water-based drilling fluids. They sell shakers and centrifuges for controlling solids as well as cementing equipment such as software, consumables, and related products.
  • Their services include cuttings waste management, well cementing, "logging-while-drilling", mud logging and measurements-while-driling services.
  • In addition to the above, they offer integrated drilling, measured pressure drilling, directional drilling surveys, DRILCO inspection, tubular, real-time drilling analytics, and fishing services.

Baker Hughes

  • Baker Hughes made $22.9 billion in revenue in 2018.
  • They sell drill bits, rig drilling systems, drilling and completion fluids, well construction and intervention equipment and drilling services. (https://www.bhge.com/products-services/upstream/drilling).
  • Their drill bits include tricone, diamond, and hybrid bits. In terms of the services connected to these products, they provide hole enlargement, drilling optimization, and drilling engineering systems and solutions.
  • Their drilling services also include drilling motor, rotary steerable, reservoir navigation, measurement while drilling, surface logging, logging while drilling, coiled tubing drilling, casing and liner drilling, and coring services.
  • Some drilling fluids they sell include water-based drilling, emulsion drilling, reservoir drill-in, specialty drilling, and completion fluids. The services relating to these products are fluids handling and environmental services.

Halliburton


Weatherford


RESEARCH STRATEGY

In completing this research, we started by reviewing the website of each company for information in relation to their drilling products and services. We then used SEC to ascertain the most recent and credible record of the annual revenue for each company. In the case of Weatherford, we used Statista.
Part
08
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Part
08

Hydraulic Fracturing - Well Completion Key Players Details

Chevron Corporation, Schlumberger, Halliburton, and National Oilwell Varco offer well completion parts, tools and services. Newpark Resources provides chemicals used in the well completion phase. A detailed report with actual annual revenues is presented below.

CHEVRON CORPORATION

  • In 2018, Chevron Corporation reported an annual revenue of $158.9 billion. In the previous year, their annual revenue was reported to be $134.7 billion.
  • Chevron offers fiber optic technology to gather real-time data and help understand the efficiency of well completion. This also facilitates the management of wells.
  • The company provides cased-hole completion services and open-hole completions where they install sand screens to stabilize oil reservoirs.
  • Chevron also installs production tubing during well completion phase.

SCHLUMBERGER LIMITED

  • In 2018, the company reported an annual revenue of $32.8 billion and their reported annual revenue for the year 2017 was $30.4 billion.
  • The company offers robust packers that are designed to suit the conditions in a well or reservoir. They are suitable to a wide range of temperatures and pressures in an oil field.
  • Schlumberger offers intelligent completion services to optimize recovery using real-time digital data. This enhances production control, management of gas and water, and minimizes interventions.
  • They offer multi-stage "Frac plugs" and sleeves to speed up well opening, reduce risks, and environmental hazards.
  • The company provides distributed permanent measurement systems and permanent down hole gauges to track down hole data and identify issues. They also install distributed acoustic sensing (DAS) and distributed temperature sensing (DTS) systems.
  • They provide safety and isolation valves to manage risks and reduce formation damages.
  • Schlumberger also offers other completion solutions including zonal isolation, scale buildup, selective production, corrosion, and tubing movement.

HALLIBURTON

NATIONAL OILWELL VARCO

  • In 2018, National Oilwell Varco (NOV) reported an annual revenue of $8.5 billion. In 2017, NOV's reported revenue was $7.3 billion.

NEWPARK RESOURCES

RESEARCH STRATEGY

To identify the most recent annual revenue, products, and services offered by the well completion key players, we consulted the web for financial information and products/services offered by these companies. For all the companies, we managed to find annual reports with details about actual annual revenues for the 2017 and 2018 fiscal years. We also found their products and services described on their websites. Ultimately, the research yielded good results and we found all the information we were looking for.


Part
09
of nine
Part
09

Hydraulic Fracturing - Production Key Players Details

Annual revenue of Halliburton, Schlumberger, Weatherford International, FTS International, and Calfrac Well Services are $23,995 million, $32,815 million, $5,744 million, $1,543.3 million, and $2,256 million respectively.

Halliburton (HAL)

SERVICES, TECHNOLOGIES, AND TOOLS OFFERED IN THE PRODUCTION PHASE

Schlumberger

SERVICES, TECHNOLOGIES, AND TOOLS OFFERED IN THE PRODUCTION PHASE

Weatherford International

  • The annual revenue of the company in 2018 was $5,744 million (actual).
SERVICES, TECHNOLOGIES, AND TOOLS OFFERED IN THE PRODUCTION PHASE

FTS International (FTS)

SERVICES, TECHNOLOGIES, AND TOOLS OFFERED IN THE PRODUCTION PHASE

Calfrac Well Services

  • The annual revenue of the company in 2018 was $2,256 million (actual).
SERVICES, TECHNOLOGIES, AND TOOLS OFFERED IN THE PRODUCTION PHASE
Sources
Sources

From Part 04
Quotes
  • "Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production and integrated pore-to-pipeline solutions for hydrocarbon recovery that optimize reservoir performance."
Quotes
  • "No other company brings together capabilities across the full value chain of oil and gas activities—from upstream to midstream to downstream. This portfolio positions BHGE to create new sources of value, improving productivity and project economics through integrated equipment and service offerings."
  • "Only BHGE has a fullstream capability: the portfolio, the technology and the people to radically transform the oil and gas industry and deliver unparalleled improvement in industrial yield for our customers. From reservoir to refinery, from the depths of the sea to the cloud. We are fullstream. "
Quotes
  • "During the year, orders were $23.9 billion, up 10% from 2017. Revenue was $22.9 billion, up 5% year-over-year. We focused on getting closer to our customers, growing market share and re-building our equipment backlog."
Quotes
  • "Oilfield services provider Halliburton Company (NYSE:HAL) on Monday beat analyst estimates in its Q2 earnings, thanks to growth in international markets that offset lagging activity in North America, the company’s largest market."
  • "Oilfield services provider Halliburton Company (NYSE:HAL) on Monday beat analyst estimates in its Q2 earnings, thanks to growth in international markets that offset lagging activity in North America, the company’s largest market."
Quotes
  • "Schlumberger is accelerating sales in North America faster than any other region as it battles fracking king Halliburton Co. for market share. "
Quotes
  • "Halliburton is likely to underperform in the North American market (which accounted for ~60% of 2018 revenue), although international operations will fare better."