the networking and knowledge hub for the oilfield minerals
TRANSCRIPT
The networking and knowledge hub for the oilfield minerals business
#OilfieldMinerals
Introduction
Introduction
Introduction
Introduction
Introduction
Your feedback is valued
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with business card at Registration desk
Introduction
Prize draw for one of the
best Scottish single malts
IMFORMED promotes responsible drinking
Introduction
Introduction
Introduction
Introduction
Welcomes you to Houston
Introduction
• 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
©IMFORMED 2016 | imformed.com
Industrial minerals & the oilfield market
A wide range of minerals used
Introduction
©IMFORMED 2016 | imformed.com
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
Industrial minerals & the oilfield market
Drilling fluid composition
Introduction
©IMFORMED 2016 | imformed.com
Source: OGP/IPIECA
Water-based Non-water-based
Industrial minerals & the oilfield market
Introduction
©IMFORMED 2016 | imformed.com
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
Industrial minerals & the oilfield market
Introduction
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
500
1500
2500
3500
4500
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4000
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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
©IMFORMED 2016 | imformed.com
US rig count decline of around 80% from October 2014 peak
Source: WTRG Economics; Baker Hughes; EIA
US$50-55/bbl
“operational
rate”
Introduction
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
Prices to 3 June 2016
Source: Oilprice.com
Oil price rises 2016
WTI $48.62 Brent $49.64
Introduction
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
• 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
©IMFORMED 2016 | imformed.com
Source: BP Energy Outlook 2016
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
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
Source: BP Energy Outlook 2016
• 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
©IMFORMED 2016 | imformed.com
• But shale gas output expected to expand outside North America
Sources of shale gas supply
Introduction
©IMFORMED 2016 | imformed.com
• 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.
Source: BP Energy Outlook 2016
Introduction
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
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
©IMFORMED 2016 | imformed.com
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
Presentations will be available for delegates a few days after the Forum
You will be emailed a URL and password to access downloads of PDFs
©IMFORMED 2016 | imformed.com
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Introduction