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Flotek Whisper

Flotek Whisper
 

Research Question: Will Flotek’s CnF chemical become widely adopted by Exploration and Production companies to enhance the flow & recovery of hydrocarbons?

Companies Covered: Flotek (FTK), National-Oilwell Varco (NOV), Ecolab (ECL), Halliburton (HAL), Schlumberger (SLB), Baker Hughes (BHI)

Report Available: April 11, 2014

 

Blueshift’s initial research indicates Flotek’s patented Complex Nano Fluids (CnF) chemical is improving the efficiency of hydrocarbon recovery through the fracking process for at least one early adopter with the potential to reach many more as the demand for natural gas increases, but it faces competition from other large national players and may be hampered by geographical limitations of CnF.

 

Observations

  1. Flotek Industries developed a chemical additive, called Complex Nano Fluids or CnF, which helps streamline the recovery and flow of hydrocarbons, significantly increasing the profitability of wells. In addition to optimizing well efficiency, the compound is also derived from organic sources, thus allowing CnF to be deployed with minimal environmental impact. Freeport McMoRan’s Exploration Unit has already seen a dramatic rise in productivity from using CnF in the majority of its wells in the Niobrara shale formation in Colorado, and now uses it in the Eagle Ford formation in Texas.
  2. As coal fired power plants are decommissioned in the U.S., natural gas plants are a leading alternative thus increasing demand for hydraulic fracturing. The development of a compound or product that can increase the efficiency of already existing natural gas wells represents a profitable source of revenue advantageously located on the supply chain. Recent news of shale wells not living up to their estimated outputs coupled with the rising demand of natural gas, gives new potential for CnF to increase the efficiency and production of existing wells to maximize production efficiency.
  3. While Flotek’s CnF product line is enviornmentally friendly and provides a significant value added service, it cannot be deployed and utilized with maximum efficiency in all geographic areas, making it potentially difficult and costly for drillers to determine if it is worth utilizing in their drilling operations. Flotek is also in competition with other large industry players including, Baker Hughes, Nalco Holding, Champion Tech, Schlumberger, and Halliburton. Should a competitor develop a compound that is more widely usable, Flotek’s CnF line has the potential to fall by the wayside. In addition, Carbo Ceramics, the developer of a proprietary type of ceramic proppant that significantly increases the efficiency of hydrocarbon extraction, has witnessed widespread demand for its product.

 

To gain insight into the potentially widespread adoption of Flotek’s CnF products, Blueshift will gather data and issue a market research report from independent sources in the following areas: Exploration & Production (E&P) companies, gas and petroleum engineers, well completion companies/experts, and industry specialists.

 

To see other ideas Blueshift Research is currently working on, please click here.