Guar International 2014
October 2014
Overview of PfP
• Established in 2001 as PfP
Technology
• 2nd Largest provider of guar to
oilfield in the world
• Also provide stimulation
chemicals to sector
• PfP Industries established in 2014
Vertical Integration
IGP
• Secure and process guar powder
• Foundation of vertical integration
PfP
Technology
• Supply of guar gum and related products
• Face of vertical integration
Optiblend
Industries
• Blending, storage and distribution solutions
• Footprint of vertical integration
Roughneck
Equipment
• On site storage/blending solutions
• Final step of vertical integration
United States Network
Simple Schematic of Hydraulic Fracturing Process
What is Shale Oil and Gas?
Shale oil and gas refers to the hydrocarbons that are trapped within shale formations. Shales’
are fine-grained sedimentary rocks that can be rich sources of oil and natural gas. Over the
past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access
to large volumes of shale oil and gas that were previously uneconomical to produce. The
production of oil and gas from shale formations has rejuvenated the U.S. oil and gas industry
and presents opportunity to many other countries around to globe which contain untapped
shale resources.
North America Average Rig Count
Year
2008
2009
2010
2011
2012
2013 YTD
Vertical
954
443
501
574
613
448
(51%)
(41%)
(32%)
(31%)
(31%)
(25.5%)
553
456
882
1074
1,175
1,109
(29%)
(42%)
(57%)
(57%)
(59%)
(63%)
372
190
173
231
214
203
1,879
1,089
1,546
1,879
1,992
1,760
Horizontal
Directional
Total
US Oil and Gas Production
9
70
Gas Production Change
2005 – 2013: 34%
2010 – 2013: 14%
8
65
60
55
6
50
Gas, Bcf
Oil, MBPD
7
45
5
Oil Production Change
2008 – 2013: 46%
2010 – 2013: 33%
4
40
Natural Gas
35
3
30
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Crude Oil
2014
General Commentary
• Not Nostradamus, but expect a steady, controlled growth in US
oilfield – maybe 10% annual growth – natural gas is wildcard
• US rig count doesn’t tell the whole story – drilling efficiencies
and increase in stages
• Another 2011/2012 – guar market still recovering from 2011/2012
price spikes
• Going cheap – E&P companies in US cutting costs
• International – US will continue to grow, but international is real
upside
Global Opportunity
Where is the Next Big Thing?
Top 10 Countries with Technically Recoverable Shale Oil and Gas Resources
Shale Oil
Rank
1
2
3
4
5
6
7
8
9
10
Country Shale Oil (billion barrels)
Russia
75
US
58
China
32
Argentina
27
Libya
26
Australia
18
Venezuela
13
Mexico
13
Pakistan
9
Canada
9
World Total
345
Shale Gas
Rank
1
2
3
4
5
6
7
8
9
10
Country Shale Gas (trillion cubic feet)
China
1,115
Argentina
802
Algeria
707
US
665
Canada
573
Mexico
545
Australia
437
South Africa
390
Russia
285
Brazil
245
World Total
7,299
Oilfield Guar SWOT
Strengths
Weaknesses
• Nothing Truly Comparable
• Price Instability
• Familiar/Field Tested
• Hard Market to Predict
• Affordable
• Mother Nature
Opportunities
Threats
• Natural Growth in US Market
• Slickwater/FR
• Increased Performance
• Lack of Quality to Keep up with
Demand
• International Market
• Alternative Polymers
• Another 2011/2012
www.pfpindustries.com
14227 Fern St
Houston, TX 77079
281-584-0047
info@pfpindustries.com