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#OilfieldMinerals
Welcome Reception Sponsor Exhibitors
Supporting Partners
Introduction
Welcome to Bahrain
Introduction
• Extensive experience & reputation
• Specialist conferences
• Market research
• Launched in January 2015
Welcome Reception Sponsor
Exhibitors
Supporting Partners
Introduction
Introduction
©IMFORMED 2018 | imformed.com
Introduction
Welcome Reception Sponsor Exhibitors
Supporting Partners
CALL FOR PAPERS
EARLY BIRD ENDS
23 MARCH 2018
Oilfield Minerals’
Rockin’ Rodeo Reception 5.30-7.30pm Monday 7 May 2018
Bucking Bronco Country & Western Band
Relax, let your hair down, enjoy a Texan Sundowner
Conferences in 2018
CALL FOR PAPERS | SPONSOR/EXHIBIT OPPORTUNITIES
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
PICK UP YOUR COMPLIMENTARY COPY
AT OUR STAND TODAY !!
©IMFORMED 2018 | imformed.com
Your feedback is valued
Please complete & give in our Feedback Form
with business card at Registration desk
Introduction
Prize draw for one of the
finest whiskeys
IMFORMED promotes responsible drinking
Introduction
Industrial minerals & the oilfield market
Market Outlook
©IMFORMED 2018 | imformed.com
A wide range of vital applications
• Drilling
• Well
cementing
• Stimulation
• Production
• Surface
prep/cleaning
Industrial minerals & the oilfield market
A wide range of minerals used
Market Outlook
©IMFORMED 2018 | 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
Market Outlook
©IMFORMED 2018 | 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
For a wide range of applications
Industrial minerals & the oilfield market
Market Outlook
©IMFORMED 2018 | 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
Drilling fluids market
Market Outlook
©IMFORMED 2018 | imformed.com
North America
Latin America
Middle East
CIS
Africa
Europe
Asia Pacific China
Source: IHS 2017
Oilfield chemicals market:
regionial share by value Drilling fluids market:
onshore v offshore
Market value estimated to grow from US$7.6bn to US$10.01bn by 2025
Offshore
40%
Onshore
60%
Source: Grand View Research 2017
Middle East oilfield mineral sources: examples
Market Outlook
©IMFORMED 2018 | imformed.com
Barite
China
India
Morocco
Pakistan
Thailand
Turkey
Vietnam
Bentonite
Egypt
India
Iran
Spain
Turkey
USA
Oil price driver
Market Outlook
©IMFORMED 2018 | imformed.com
Source: OilPrice.com 2018
EIA STEO forecasts 18 Jan. 2018
Brent crude average
$60/b 2018
$61/b 2019
WTI crude average
$56/b 2018
$57/b 2019
EIA: oil price outlook
Market Outlook
©IMFORMED 2018 | imformed.com
Source: EIA 2017
GDP drivers for energy demand
Market Outlook
©IMFORMED 2018 | imformed.com
Source: EIA 2017
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Baker Hughes/WTRG Economics 2018
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Baker Hughes/WTRG Economics 2018
Market Outlook
©IMFORMED 2018 | imformed.com Source: Baker Hughes/WTRG Economics 2018
Middle East rig count Jan. 2018
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Baker Hughes 2018
Middle East rig count 1995-2017
Market Outlook
©IMFORMED 2018 | imformed.com Source: Baker Hughes/WTRG Economics 2018
Middle East oil rig count 2014-17
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Qamar Energy 2017
UAE
Kuwait
Oman
Qatar
Saudi Arabia
Others
Iraq
Middle East gas rig count 2014-17
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Qamar Energy 2017
UAE Kuwait
Oman
Qatar
Saudi Arabia
Others
Middle East v US rig count 2014-17
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Qamar Energy 2017
Middle East
USA
EIA Outlook – key takeaways
Market Outlook
©IMFORMED 2018 | imformed.com
• 2015 to 2040, world energy consumption increases by 28%, with >50%
attributed to non-OECD Asia (including China and India), where strong
economic growth drives increasing demand for energy
• Natural gas is world’s fastest growing fossil fuel, increasing by
1.4%/year, compared with liquid’s 0.7%/year growth and virtually no
growth in coal use (0.1%/year)
• Cumulative sales of plug-in electric vehicles (PEVs) worldwide reached
1.2 million in 2015 or less than 1% of the light duty vehicles (LDV)
stock.
• World natural gas production rises by 146 billion cf/d. The largest
increases occur in the Middle East from its large proved gas reserves,
and from the USA and China from their large shale gas resources.
• World liquefied natural gas (LNG) trade is projected to nearly triple,
from 32 billion cf/d to 84 billion cf/d
IEA: key takeaways
Market Outlook
©IMFORMED 2018 | imformed.com
• The USA is turning into the undisputed global leader for oil & gas
• Solar PV is on track to be the cheapest source of new electricity in
many countries
• China’s new drive to “make the skies blue again” is recasting its
role in energy
• The future is “electrifying”, spurred by cooling, electric vehicles &
digitalisation
• Consumption of natural gas rises by nearly 20% to 2030 in the
Sustainable Development Scenario and remains broadly at this
level to 2040.
EIA: energy consumption outlook
Market Outlook
©IMFORMED 2018 | imformed.com
Source: EIA 2017
EIA: increases in natural gas output
Market Outlook
©IMFORMED 2018 | imformed.com
Source: EIA 2017
IEA: US becomes net gas exporter
Market Outlook
©IMFORMED 2018 | imformed.com
Source: IEA 2017
US oil and gas production
IEA: Shifting energy demand centres
Market Outlook
©IMFORMED 2018 | imformed.com
Source: IEA 2017
• Middle East, Asia is fast becoming major energy consumers
• USA is fast becoming a major exporter
IEA: Shifting energy demand mix
Market Outlook
©IMFORMED 2018 | imformed.com
Source: IEA 2017
• Low-carbon sources & natural gas meet 85% of the increase in global
demand
• China’s switch to a new economic model & a cleaner energy mix drives
global trends
IEA: Acknowledgement to EV growth
Market Outlook
©IMFORMED 2018 | imformed.com
Source: IEA 2017
EVs slowing the pace of growth in global oil demand: however, trucks,
aviation, shipping & petrochemicals keep oil on a rising trend
“EVs are coming fast, but it’s still too early to write oil’s obituary”
Upstream investment to come
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Wood Mackenzie 2018
Wood Mackenzie outlook Jan. 2018
“Most companies will maintain a highly cautious
approach to exploration for a while yet. Competition for
the best opportunities will be fierce. Industry investment
and well counts will remain stubbornly low in 2018.”
“The majors will be the explorers to watch…they know that conventional exploration will be needed for long-term renewal. The majors sense a bottom-of-the-cycle opportunity to build acreage at low cost. Their exploration cuts have been less deep and their overall market share will continue to grow.”
Upstream investment to come
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Patrick Schorn, Schlumberger 2017
Patrick Schorn, Executive Vice President, New Ventures, Schlumberger
Middle East GDP drivers for energy demand
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Focus Economics 2018
Middle East power demand fed by gas
Market Outlook
©IMFORMED 2018 | imformed.com
Source: Siemens Middle East Power Outlook 2017
• Population is increasing faster
than power demand; Kuwait,
Oman, Qatar, Saudi Arabia
and the UAE growing at 3.5%
• Power demand is expected to
grow by 3.3 % each year until
2035
• 277 gigawatts of new capacity
required by 2035
• Gas expected to be largest
source for power at 60% of
installed capacity through 2035
BP: Middle East outlook to 2035
Market Outlook
©IMFORMED 2018 | imformed.com
• Maintains role as world’s top oil exporter; volumes rising from 21 Mb/d in
2015 to nearly 27 Mb/d in 2035
• Largest oil producing region, making up more than a third (32%) of the
world’s oil supply, to rise to 37% in 2035.
• Oil production expected to rise by 29% or 9 Mb/d by 2035, with growth in
Saudi Arabia, Iraq and Iran.
• Natural gas accounts for more than half of the growth in the region’s
energy consumption; energy consumption rises almost 50% by 2035.
• By 2035, fossil fuels still make up 95% of demand, with the share of
natural gas rising from 50% to 52%. Oil’s share falls from 48% to
42%.The share of non-fossil fuels in the region’s energy mix rises from
only 1% today to more than 5% by 2035. Source: BP 2017
EIA: Middle East short term outlook
Market Outlook
©IMFORMED 2018 | imformed.com
• In addition to growth in China and India, EIA expects petroleum and
other liquid fuels consumption growth in the Middle East to rise in
2018 and 2019, with increases of 0.1 million b/d in 2018 and 0.2
million b/d in 2019.
• Saudi Arabia continues to see increasing domestic petroleum
consumption despite the expansion of natural gas use for electric
power generation. Saudi Arabia’s direct burn of crude oil for electric
power generation will remain at roughly the 2017 level through
2019.
IEA: Iran gas drive
• With a focus on developing the South Pars field, Iran is set for a
major expansion of natural gas production
• Iran leads gas output growth in the Middle East, adding 150bn cubic
metres a year to the region's gas supply in the period to 2040.
Market Outlook
©IMFORMED 2018 | imformed.com
Jeff Miller, CEO, Halliburton
“I am very excited about the way 2018 is shaping up.
Commodity prices have moved up. North America
unconventional activity should be very busy, international
markets are starting to show signs of life (driven primarily by improved
performance in the Middle East, the North Sea and Latin America.)
In the Middle East/Asia region, [2017] revenue increased by 12%...primarily
driven by increased drilling and stimulation activity in the Middle East with
increased activity in Algeria and Egypt.
In 2018, what I’m most excited about internationally would certainly be the
North Sea and the Middle East.”
Market Outlook
©IMFORMED 2018 | imformed.com
Paal Kibsgaard, Chairman and CEO,
Schlumberger
“2017 marked the beginning of the oil market recovery with
supply and demand moving into balance and oil prices
steadily increasing over the course of the year.
We expect another year of robust growth in North America shale oil
production, which will be required to maintain the balance in the global oil
market.
The international market is poised for growth for the first time in four years
with a forecast of 5% increase in E&P spend. Spearheaded by solid
underlying activity increases and market share gains in the Middle East,
Russia, Asia and the North Sea.”
Market Outlook
©IMFORMED 2018 | imformed.com
Lorenzo Simonelli Chairman and CEO,
Baker Hughes
“Our outlook remains positive.
Early indications of customer capital spending are encouraging,
particularly for our short-cycle businesses. The recent strength
in commodity price has underscored this view.
2018 and beyond, it’s clear that coming out of the most recent downturn,
the market and our customers’ expectations have structurally changed.
Oil and gas service providers have and will continue to look at ways of
improving efficiency and cost for customers, regardless of where the price
of oil and gas may move.”
HE Dr Sultan Ahmed Al Jaber, UAE minister of
state and ADNOC Group CEO
Market Outlook
©IMFORMED 2018 | imformed.com
“This economic growth will continue to drive
energy consumption, which will expand by at
least 25% by 2040.
As we diversify the energy mix, hydrocarbons will continue to play a vital
role in meeting demand.
By the end of this year, global demand for oil alone is set to break the
threshold of 100 million barrels per day.”
ADNOC’s 2030 strategy plans to expand gas production by accessing
undeveloped tight reservoirs; the Hail, Ghasha and Dalma project taps
into Abu Dhabi’s Upper Jurassic Arab formation, which is estimated to
hold trillions of cubic feet of recoverable gas.
Amin Nasser, CEO, Aramco
Market Outlook
©IMFORMED 2018 | imformed.com
“We plan to invest more than $300 billion over the coming decade to
reinforce our preeminent position in oil, and pursue a large
exploration and production program centering on conventional
and unconventional gas resources.”
Unconventional gas is the preferred fuel for power generation and water desalination
because of its increased efficiency and cleaner burning qualities compared to other fossil
fuels.
Saudi Arabia plans to be among the first countries outside North America to use shale gas for
domestic power generation.
Active exploration programme for unconventional gas resources focusing on three areas in
Saudi Arabia: the Northwest, South Ghawar and the Rub’ al-Kha
“The full unconventional gas value chain such as site development, rig preparation, drilling,
fracking, completion, well tie-in, production and maintenance is poised to grow rapidly
between now and 2021.”
Technology developed includes use of seawater-based fracturing fluids and the use of resin-
bonded local sand as proppants combined with the channel fracturing technique.
Conclusions: Reasons to be cheerful
Market Outlook
©IMFORMED 2018 | imformed.com
• Oil price and GDP drivers very positive to boost energy demand,
especially in ME, China, India.
• Hydrocarbons still majority share of energy mix, with gas increasing to
around a 25% share at expense of coal and oil
• EVs are coming, but too early to have more than limited impact
• Rig activity is rising and upstream investments, with some caution,
returning
• Rapid rise in power demand in ME to be met by gas as preferred
energy source, driving exploration and development of unconventional
resources
• Oil service majors very upbeat for 2018/19 outlook, especially USA but
also international hotspots including ME
• Positive prospects for oilfield minerals demand!
Introduction
©IMFORMED 2018 | imformed.com
Programme – Tuesday Morning
INTRODUCTION | OVERVIEWS
09.00 Introduction & Market Overview
Ismene Clarke, Director & Mike O’Driscoll, Director, IMFORMED, UK
09.30 The complexity and functionality of oil based drilling fluids and their mineral additives
Michael Tate, Technical Sales Manager, RheoMinerals Inc., USA
10.00 COFFEE
BARITE
11.00 Sustainability in drilling barite specifications
John Newcaster, Director Southwest, The Cumberland Group Inc., USA
11.30 Barite supply from Turkey and Middle East markets
Fatma Akgun, Deputy General Manager-Business Development, Ado Mining, Turkey
12.00 LUNCH
Introduction
©IMFORMED 2018 | imformed.com
Programme – Tuesday Afternoon
PROCESSING
14.00 A revolutionary new concept in barite and bentonite processing: Mobility and Modularity
Jean-Francois Maréchal, Managing Director, Poittemill, France
14.30 Processing developments for oilfield minerals
Herve Guicherd, Director Business Development Minerals, ST Equipment & Technology LLC,
France
15.00 PANEL DISCUSSION: Key challenges for the oilfield mineral market outlook
Mike O’Driscoll, Director, IMFORMED, UK
Jean-Francois Maréchal, Managing Director, Poittemill, France
Herve Guicherd, Director Business Development Minerals, ST Equipment & Technology LLC, France
John Newcaster, Director Southwest, The Cumberland Group Inc., USA
Pickard Trepess, Managing Director, FRAC PT FZE, UAE
15.45 Refreshments & Close of Day 1
KEYNOTE DISCUSSION PANEL
Moderator
Mike O’Driscoll Director, IMFORMED, UK
Panellists
Jean-Francois Maréchal Managing Director, Poittemill, France
Herve Guicherd Director Business Development Minerals, ST
Equipment & Technology LLC, France
John Newcaster Director Southwest, The Cumberland Group Inc.,
USA
Pickard Trepess Managing Director, FRAC PT FZE, UAE
Status & outlook for the market
PLEASE JOIN IN! Questions & comments most
welcome from the audience
Please state your name & affiliation
©IMFORMED 2018 | imformed.com
Introduction
©IMFORMED 2018 | imformed.com
Programme – Wednesday Morning
PROPPANTS
09.00 Proppant utilisation and outlook in the Middle East
Pickard Trepess, Managing Director, FRAC PT FZE, UAE
09.30 The Good, the Bad and the Ugly of ceramic proppant manufacturers in China
Viviana Trevino, President, Changqing Proppant Corp., China
10.00 COFFEE
POZZOLAN | GILSONITE
11.00 Natural pozzolanic material and its application in oil well cementing
Dionysios Kotinis, General Manager, Imerys Minerals Arabia LLC, Saudi Arabia
11.30 Iranian Gilsonite supply and application in oilfield markets
H. Nezam Zadeh, Managing Director, Payapa Setak Inc., Iran
12.00 LUNCH & CLOSE OF CONFERENCE
©IMFORMED 2018 | imformed.com
Participate
Learn
Enjoy
Introduction