HALBOUTY ENERGY
Chemicals
Halbouty Energy promises three things... service, price and quality. You will not find another company within the industry that will compare with the quality of service that we are able to provide. Our customer’s needs come FIRST and we make sure we deliver on time every time. The oil industry is a 24 hour a day/365 days a year industry. At Halbouty Energy, we understand there is no time for wells to be offline or for companies to have any downtime. Therefore, our in house logistical team makes certain that our customers receive their chemicals when it is needed the most. On time.
Hydrochloric Acid
Hydrochloric Acid is an important and widely used chemical. One of the largest end uses for hydrochloric acid is oil well acidizing. It is used both to remove rust, scale and undesirable carbonate deposits in oil wells to encourage the flow of crude oil or gas to the well. This use is called "stimulation." Acidizing is generally done in carbonate or limestone formations by stimulation. An acid solution is injected into the formation, which dissolves a portion of the rock and creates a large pore structure in the formation, increasing its effective permeability and the flow of oil.
The oil well acidizing operations are expected to grow at a CAGR of 2.5% (2008-2013) owing to discovery of the new shale gas deposits. This sector accounts for about 29% of the demand for HCl. Steady demand from the oil drilling segment has led to an unbalanced market and reduction in technical grade HCl.
In the HCl market, distributors usually maintain high inventory levels owing to the uncertainties in production levels. The unbalance in supply-demand dynamics has resulted in the rising prices of HCl in the US market.
Hydrochloric Acid changes hands between technical grade manufacturers, high purity manufacturers and distributors in different strata of the supply chain. This makes supply chain management a critical task of significant importance.
Supply - Demand Balance
Transportation costs for hydrochloric acid is almost 50% of its price. In addition, storage expense for the acid is also substantial. This makes a third party distributor essential in the supply chain. The distributor has the following roles:
• Maintain supply-demand balance.
• Providing technical expertise and regulatory assistance.
• Maintain huge and sufficient storage/inventory levels to guarantee supply to clients.
HCl is derived as a by-product of industrial chlorination reactions. There are about 40 processes which produce hydrochloric acid as a co-product and about 110 manufacturing processes which consume hydrochloric acid as a raw material. Since output from a given factory fluctuates wildly, it is nearly impossible for individual HCl producers to assume a commitment directly with end users. This is where distributors find importance in the supply chain as they have significant logistical capability to store and deliver HCl.
Halbouty Energy promises three things... service, price and quality. You will not find another company within the industry that will compare with the quality of service that we are able to provide. Our customer’s needs come FIRST and we make sure we deliver on time every time. The oil industry is a 24 hour a day/365 days a year industry. At Halbouty Energy, we understand there is no time for wells to be offline or for companies to have any downtime. Therefore, our in house logistical team makes certain that our customers receive their HCl when it is needed the most. On time.
Our HCl quality is thoroughly screened and we offer nothing but the purist and most effective HCl available.
Hydrochloric Acid is a commodity. Therefore, the price of HCl fluctuates due to the market. Because we have an established relationship, Halbouty Energy is able to “lock in” a price on a quarterly basis that allows us to be extremely price competitive with others. This permits us to offer our customers HCl at a below market cost often times.
Hydraulic Fracturing Chemicals
The chemicals used in fracking serve many functions during the hydraulic fracturing process. There are only a limited number of chemicals used in hydraulic fracturing, even though there are hundreds of chemicals that could be used as additives. It’s important to note that chemicals used during hydraulicfracturing play a very specific role and make up less than 1% of the total fluids used in the hydraulic fracturing process. Chemicals ensure that the producing formation is effective and must be used in the hydraulic fracturing process.
All Halbouty Energy chemicals are manufactured from 100% US-made raw materials which is why we guarantee all of our products. Our cost-controlled manufacturing process combined with minimizing the sales distribution channel, allows us to sell directly to your company and we pass our costs savings directly to you. These cost savings have consistently added greater profitability to all of our customers.