PacWest FracDB Capabilities: A Sophisticated Market Analysis Tool
-
Upload
alexander-robart -
Category
Business
-
view
519 -
download
3
description
Transcript of PacWest FracDB Capabilities: A Sophisticated Market Analysis Tool
PacWest Consulting Partners 920 Memorial City Dr, Suite 160
Houston, TX 77024
FracDB: The First US Frac Database A Powerful Tool for Understanding the Market
Houston, Texas
November 14, 2011
TERMS & CONDITIONS Information furnished in all reports produced by PacWest may be used by Client for internal purposes, as Client deems beneficial, as long as due care is taken to hold the information confidential within Client’s organization and PacWest is not liable for the information provided. All rights to the information remain with PacWest. PacWest represents that it will not breach any obligation of confidentiality with respect to information contained in the study. PacWest will maintain in confidence and not disclose any information related to Client, without prior written consent of the Client. PacWest will not disclose to any person, including, without limitation, any of the Client’s competitors or suppliers, the fact that Client has engaged PacWest in this project scope, the scope of the assignment or any other information relating to Client.
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 2
Contents
1. PacWest Snapshot
2. FracDB Capabilities
FracDB Overview
Pressure Pumper & Customer Relationships Case Study
Completions Chemical Market Case Study
3. PacWest Market Intelligence Offerings
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 3
Firm Overview & Capabilities
PacWest is a boutique strategy consultancy and market intelligence firm that specializes in unconventional oil & gas
Provide strategy consulting and advisory services to Oil & Gas
Strength in Oil & Gas supply market
- Often work with operator supply chain groups analyzing supply/demand, developing sourcing strategies, building capabilities, etc.
With oilfield suppliers, often work at C-Level or business lead
Consulting & Advisory
Offer industry-leading analysis of unconventional market
Deep knowledge and strength in the pressure pumping / frac market
Employ combination of primary intelligence + secondary research
Unique in market: apply strategy consulting capabilities to turn research into actionable intelligence
Market Intelligence Products
All key staff come from top-tier strategy firms; consulting and market intelligence capabilities reinforce/inform each other
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 4
Sample of Recent PacWest Consulting Projects
A sampling of some of PacWest’s recent projects demonstrate our depth of experience in North American and international shale
We have resources in nearly every major unconventional country/region to support international shale needs
PacWest Project Client Outcome
Analyzed Bakken & Eagle Ford supply/demand; conducted demand planning exercise to develop new pressure pumping sourcing/contract strategy
Operator avoided completion delays, avoided significant additional costs
Developed Poland unconventional market entry, product/service, and JV strategy for a potential shale service company for a private equity client
PE firm focused on high-growth segments only, with the right strategic partners
Developed an innovative economic and strategic analysis of operator all-in water management costs over 20-year timeframe, for Bakken & Eagle Ford assets
Operator understood cost implications, made optimal economic decisions
Conducted a study of frac pump market focused on supplier strategic plans, manufacturing capabilities, and supply chain capabilities
Equipment manufacturer developed optimal strategic investment plans
Conducted study of evolving service company landscape in Poland, including equipment, resources, and expansion plans
Operator made better informed contract award decision
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 5
Contents
1. PacWest Snapshot
2. FracDB Capabilities
FracDB Overview
Pressure Pumper & Customer Relationships Case Study
Completions Chemical Market Case Study
3. PacWest Market Intelligence Offerings
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 6
FracDB is the definitive database of fracs and frac chemicals that can be used to conduct sophisticated market analyses
Data Elements Product Overview
Frac date
Well number, API number
Operator
TVD
Water volume
Pressure Pumper
Play
Chemical type
Chemical ingredient
Chemical supplier
Contact us for more detail
Database of US fracs and frac chemicals, built into a rich structured data set
- The data set already contains nearly 7,000 fracs conducted in 2011
A sophisticated tool that can be used to run a variety of analyses:
- Pressure pumping/frac market share
- Completion chemicals market share
- Regional frac design practices
- And dozens of other analyses…
Updated quarterly
FracDB is a powerful tool for the sophisticated market analyst – available late 2011
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 7
Contents
1. PacWest Snapshot
2. FracDB Capabilities
FracDB Overview
Pressure Pumper & Customer Relationships Case Study
Completions Chemical Market Case Study
3. PacWest Market Intelligence Offerings
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 8
PacWest’s FracDB provides unprecedented insights into the completion chemicals market
Analysis of Pressure Pumper Customer Relationships
■ The PacWest FracDB is a database of US fracs and frac chemicals, built into a rich, structured data set
- The dataset currently contains detailed data from over nearly 7,000 US fracs conducted in 2011
- The FracDB provides a granular view of pressure pumper customer relationships across US plays/basins
■ As an example of the analysis possible with the PacWest FracDB, we have provided a detailed view of pressure pumper customer relationships for one key shale play and one of Baker Hughes’ key customers
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 9
BHI has a well-established presence in the Barnett but works primarily with Devon, while HAL and WFT have a broader customer base
Pumper / Customer Relationships in the Barnett (major E&Ps only)
Note: Analysis includes data from 637 fracs in the Barnett executed between January 2011 and September 2011 from the PacWest FracDB
Operator Pumpco BHI HAL SLB WFT Superior Trican Univer-
sal Pioneer Frac Tech C&J
Chesapeake
EOG
Devon
XTO
Pioneer
Williams
ConocoPhillips
Enervest
Titan
Vantage
Range
Major customer
Minor customer
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 10
Baker is Devon’s frac provider of choice, but Devon still uses other pumpers in its other assets
Frac Provider’s Used by Devon in 2011 (Jan-Sep)
Comments Devon’s Frac Providers
Note: Analysis includes data from 274 fracs executed for Devon between January 2011 and September 2011from the PacWest FracDB
Play BHI HAL WFT
Arkoma Woodford
Barnett
Eagle Ford
Green River
Haynesville
Permian
Major customer
Minor customer
■ Although Baker Hughes has provided the vast majority of Devon’s fracs in 2011 (92%), Devon has also worked with Halliburton and Weatherford
■ Baker Hughes is creating an opportunity for its competitors to gain a foothold with one of its major customers
Is Baker Hughes leaving value on the table by opening the door for other pumpers to work with Devon?
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 11
Contents
1. PacWest Snapshot
2. FracDB Capabilities
FracDB Overview
Pressure Pumper & Customer Relationships Case Study
Completions Chemical Market Case Study
3. PacWest Market Intelligence Offerings
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 12
PacWest’s FracDB provides unprecedented insights into the completion chemicals market
Completion Chemicals Market Analysis
■ The PacWest FracDB is a database of US fracs and frac chemicals, built into a rich structured data set
- The dataset currently contains detailed data from over nearly 7,000 US fracs conducted in 2011
- The FracDB provides extremely detailed data on types and volumes of chemicals used in the hydraulic fracturing process
■ As an example of the granular detail provided by the PacWest FracDB, we have conducted an initial analysis of the market for biocides used during stimulation in the DJ Basin
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 13
BHI is the dominant supplier (75%) of biocide in the DJ basin, although it only runs 27% of frac jobs
Frac and Biocide Market Share in the DJ Basin
27% 28%
23% 20%
1% 1%
19%
36%
22% 22%
1% 0%
75%
10%
0%
13%
1% 0% 0%
10%
20%
30%
40%
50%
60%
70%
80%
Baker Hughes Halliburton Superior Calfrac Unknown Maverick
Mar
ket
Shar
e
Share of Frac Jobs (total = 612)
Share of Fluid Pumped (total = 6.9M barrels)
Share of Biocide (total = 336K pounds)
Comments Fracs vs. Biocide in the DJ Basin (Jan-Sep 2011)
■ HAL is the largest frac provider in the DJ Basin, with 28% of the market by number of frac jobs, and 36% of the market by total fluid pumped
■ However, BHI is the dominant supplier of biocide in the DJ Basin, with 75% of the market by weight
■ Baker supplied 56% of biocide used in it’s competitors’ frac jobs (i.e. frac jobs not executed by Baker)
Note: Analysis includes data from 612 fracs in the DJ Basin executed between January 2011 and September 2011 from the PacWest FracDB
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 14
Although there are eight different biocides used in the DJ Basin, Baker’s DBNPA product is by far the most common
Biocide Market Share in the DJ Basin
253,532
44,182 34,768
3,859 0
50,000
100,000
150,000
200,000
250,000
300,000
Baker Hughes Calfrac Halliburton Unknown
Po
un
ds
Bio
cid
e
MBNPA
Propietary
Bronopol
NaOH
THPS
NaClO
PEG
DBNPA
Comments Biocide Consumption in the DJ Basin (Jan-Sep 2011)
■ Baker is the dominant biocide supplier in the DJ Basin, with 75% of market share
■ Baker sells two biocide products in the DJ: DBNPA (94%) and THPS (6%)
■ Calfrac is the 2nd largest supplier, with 13% share (44,182 pounds), followed by Halliburton with 10% share (44,182 pounds)
Total = 336,342 pounds
Short-Hand Biocide Full Name
Bronopol 2-Bromo-2-Nitro-1,3-Propanediol
DBNPA 2,2-Dibromo-3-Nitrilopropionamide
MBNPA 2-Monobromo-3-itrilopropionamide
NaClO Sodium Hypochlorite
NaOH Sodium Hydroxide
PEG Polyethylene Glycol
Proprietary Unknown Proprietary
THPS Tetrakis (Hydroxymethyl) Phosphonium Sulfate
Note: Analysis includes data from 612 fracs in the DJ Basin executed between January 2011 and September 2011 from the PacWest FracDB
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 15
Contents
1. PacWest Snapshot
2. FracDB Capabilities
FracDB Overview
Pressure Pumper & Customer Relationships Case Study
Completions Chemical Market Case Study
3. PacWest Market Intelligence Offerings
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 16
Market Intelligence Offerings
PacWest currently offers multiple unconventional market intelligence product offerings to support subscriber decision-making
Breakdown of pressure pumping fleets/capacity by basin and supplier with strategic analysis of latest regional supply market trends
Interactive database of 100+ critical unconventional suppliers
Cost escalation forecast for major D&C categories
Detailed breakdown of frac activity by basin, operator, pumper
Database of fracs including basin, operator, pumper, chemicals, chemical suppliers
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 17
PumpingIQ provides the only granular breakdown of regional fleets/capacity by pressure pumper and analysis of market trends
Focus Markets Fleet/Capacity Breakdown & Trends
Bakken
Eagle Ford
Permian
DJ Basin
Anadarko
Marcellus
Uinta/Piceance/Green River
Haynesville
Fayetteville
Barnett
On-going monitoring of pressure pumping fleets and capacity in major US onshore frac markets
Granular regional breakdowns of fleets/capacity by pumper
Key customers by pumper
Detailed discussion of major trends and strategic insights for each region and US market in aggregate
PumpingIQ is the only granular fleet breakdown available in the market
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 18
SupplierIQ is an interactive database of 100+ suppliers that are critical players in shale supply markets
Profile Contents Supplier Analysis
PacWest Supplier Classification
Company Overview & Analysis
Service Offerings
Geographic Footprint
Financials
Customers
Organizational Footprint
Detailed discussion of Service Offerings: 15 product/services that are critical for shale production
Interactive database of 100+ companies that supply critical D&C products/services for shale production
Database is updated quarterly with new suppliers; updates made to existing suppliers bi-annually
Subscribers can request supplier additions
Offer two forms of subscription to database: full SupplierIQ access or a subset of suppliers, customized to subscriber needs
SupplierIQ provides insightful snapshots of your key suppliers and competitors
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 19
CostIQ provides a forecast of cost increases for key drilling and completion cost drivers
Cost Segments Forecast Analysis
Drilling
- Land rigs
- OCTG
- Drilling fluids
- Cementing services
Completion
- Pressure pumping services
- Proppant
- Frac chemicals
- Completion hardware
- Completion rigs
3-year forecast of D&C cost escalation, segmented into major categories
Includes strategic discussion of trends driving increases and/or decreases
Updated bi-annually (every 6 months)
PacWest utilizes three quantitative methods to forecast prices changes for each market segment:
- Multi-variable regression
- Demand/supply models
- Macroeconomic models
CostIQ provides 3-year cost forecasts for each key US region
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 20
FracIQ is the source of frac activity data by operator and pressure pumper, with data broken down US-wide and regionally
Contents Product Overview
Aggregate US fracs:
- By operator
- By pressure pumper
Regional breakdown of fracs:
- By operator
- By pressure pumper
- By frac type
Operator and pumper relationships
Frac practices, including chemicals usage
The definitive subscription publication on frac activity across the US
Summary of fracs by region, operator, pressure pumper
Market share by pumper and operator across multiple metrics
Strategic analysis of frac trends and market dynamics, including implications for operators, pressure pumpers, and other stakeholders
Updated quarterly
Your “Land Rig Newsletter” for the frac market – available late 2011
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 21
FracDB is the definitive database of fracs and frac chemicals that can be used to conduct sophisticated market analyses
Data Elements Product Overview
Frac date
Well number, API number
Operator
TVD
Water volume
Pressure Pumper
Play
Chemical type
Chemical ingredient
Chemical supplier
Contact us for more detail
Database of US fracs and frac chemicals, built into a rich structured data set
- The data set already contains nearly 7,000 fracs conducted in 2011
A sophisticated tool that can be used to run a variety of analyses:
- Pressure pumping/frac market share
- Completion chemicals market share
- Regional frac design practices
- And dozens of other analyses…
Updated quarterly
FracDB is a powerful tool for the sophisticated market analyst – available late 2011
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 22
The ShaleIQ bundled product provides access to 3 useful products at a reduced price point
Breakdown of pressure pumping fleets/capacity
by basin and supplier with strategic analysis of latest
regional supply market trends
Interactive database of 100+ critical
unconventional suppliers
Cost escalation forecast for major D&C categories
The ShaleIQ bundle is a valuable resource to add to your decision-making toolkit
Bundle Includes
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 23
Actionable Intelligence
Transforms volumes of disparate market data, insider industry activity and expert input into strategic and actionable recommendations for decision-makers
Aggregates, organizes and distills a wide range of data and intelligence to provide information to our clients that is comprehensive, focused and strategic
Analyzes this information to assess its strategic implications and provide a clear path of action for each stakeholder
PacWest delivers actionable intelligence that is designed to provide strategic recommendations to key decision-makers
Decision-Makers
Client Confidential
FRACDB CAPABILITIES OVERVIEW
© PacWest 2011 | All rights reserved | 24
Methodology
PacWest uses a multi-pronged approach to develop its market intelligence offerings; the team:
1) Gathers and reviews all information available publicly and via proprietary databases
2) Engages its diverse network of industry contacts to gather real-time intelligence
3) Processes and synthesizes raw information into actionable intelligence
PacWest employs a comprehensive methodology that relies on primary intelligence and rigorous research and analysis
Insights are based on:
Constant conversations with our source network of field experts on-the-ground
Surveys from operators and suppliers
In-depth interviews and conversations with operators and suppliers
Industry-leading experts and technical specialists
PacWest internal databases
Primary Intelligence Gathering
These sources are regularly consulted:
Market research and reports
Company annual reports, 10-Ks, 10-Qs
Speeches and presentations by company leadership and other industry experts
Analyst reports from leading banks
Government data
Secondary Research