Apr 05, 2022/IndustryNewsGlobal/ The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Composite Frac Plugs And Balls Market.

It was estimated prior to this unanticipated outbreak that the Composite Frac Plugs And Balls Market is estimated to reach a value of US$ 957.9 million during the forecast period. Plug-n-perf is the most common technique and accounts for 85%+ of the global hydraulic fracturing market. Composites hold more than 70% share of the overall frac plugs and balls market in the industry. The composite frac plugs and balls market is highly dependent on hydraulic fracturing, the latter is highly subjected to the volatility of crude oil prices. The cash cost of producing a barrel of oil from the hydraulic fracking from shale is about US$ 30 to US$ 50, whereas the cost of producing a barrel of oil from the conventional method in Saudi Arabia is about US$ 5 to US$ 10. Hydraulic fracturing becomes unviable for operators if the oil price is below US$ 40 per barrel.

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Similar to hydraulic fracking, the composite frac plugs and balls market registered a severe downfall in 2015 and 2016, followed by huge recovery in 2018, giving a future hope to the composite frac plug and ball manufacturers. However, this hope did not last long and broke with a massive double-digit decline in 2019, owing to the weakened oil prices and increased capital discipline by major US operators, which slowed completion activity. In response to this, the oilfield service companies have cut the cost, retired equipment, and improved efficiencies.

The year 2020 is estimated to further exacerbate the demand for hydraulic fracking due to the two major setbacks (the price war between Russia and Saudi Arabia and COVID-19). The prices of crude oil declined from US$ 60 per barrel at the start of the year to US$ 20 per barrel in April in the wake of the steep fall in crude oil demand, followed by the collapse of the three-year-old pact between Russia and Saudi Arabia. As per EIA (June 2020), the average US crude oil production will be around 11.8 million b/d in 2020, down 0.5 million b/s from the year 2019. The organization expects a further decline of 0.7 million b/d to reach 11.1 million b/d in 2021.

The industry’s teething issues were further triggered by the discount offered on oil prices by Saudi Arabia and the increase in crude oil production by Russia and Saudi Arabia. The outbreak of the COVID-19 worsened the market to an unprecedented level. As per IEA estimates, the oil demand fell by 6 percent (6 mb/d) in Q1 2020 and 23 percent (23 mb/d) in Q2 2020, owing to strong travel restrictions and lockdowns across various parts of the world.

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Based on the product type, the composite frac plugs and balls market is segmented as frac plugs and frac balls. Frac plug is expected to remain the larger segment of the market during the forecast period. Filament winding is the major process used to produce composite frac plugs owing to its tubular shape. The development of shorter plugs with reduced metal contents and improvement in pressure ratings, temperature resistance, and reduction in mill-out time are key trends of the market.

Based on the resin type, the composite frac plugs and balls market is segmented as epoxy composites, phenolic composites, and other composites. Epoxy composites are expected to remain the largest segment of the market over the next five years. Key advantages are excellent interlaminar strength and toughness, high-tensile strength, good fatigue property, and good compatibility with both glass and carbon fibers. Epoxy resins are majorly used in composite frac plugs, owing to excellent mechanical properties and resistance. Other major advantages are excellent adhesive properties and a low-shrinkage ratio.

Based on the manufacturing process type, the composite frac plugs and balls market is segmented as filament winding, compression molding, and Injection molding. Filament winding is expected to remain the dominant as well as the fastest-growing process type in the market till 2025. Frac plugs are predominantly manufactured through the filament winding process. The process type is best suited for medium- to large-diameter parts of longer lengths, for example, 1″ through 24″ diameter structures with lengths from 10′ to 20’. Also, it is considered optimum for higher quantity production runs.

In terms of regions, North America is expected to remain the largest market over the next five years. Despite the huge decline, North America to maintain its lead till 2025. Key factors driving the market are the presence of a vast amount of technically recoverable shale oil reserves, the extensive infrastructure of shale gas, and the processing capacity in North America. Modern fracking has unlocked oil & gas reserves in more than 20 states in the USA. About half of the USA’s crude oil comes from fracking in the country. Permian and Eagle Ford are the major basins in the country for composite frac plugs and balls.

Key Players:

Key players operating in the global Composite Frac Plugs And Balls market are-

  • Haliburton Company
  • Baker Hughes
  • Schlumberger Limited
  • Weatherford International
  • Downhole Technology LLC
  • Repeat precision LLC
  • NOV
  • Nine Energy Services (Magnum Oil Tools International, LTD)
  • Forum Energy Technologies
  • General Plastics & Composites LP
  • Torquato Drilling Accessories
  • The Gund Co.
  • Team Oil Tools.

Features of the Report

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools.

The Composite Frac Plugs And Balls analysis report discusses the following heads in great detail:

  • Market structure: Overview, industry life cycle analysis, supply chain analysis
  • COVID-19 Impact Assessment
  • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
  • Market trend and forecast analysis
  • Market segment trend and forecast
  • Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
  • Attractive market segments and associated growth opportunities
  • Emerging trends
  • Strategic growth opportunities for the existing and new players
  • Key success factors

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