Continual expansion of unconventional oil and gas development seen over the next decade - most notably in the US, but also around the globe - will necessitate steadily increasing proppant sales over the next 10 years.
In the US, proppant sales are primarily driven by the shale (tight) oil industry, since the natural gas price has decoupled from the crude oil price, making it more economical to develop tight oil. However, elsewhere in the world, proppant sales are underpinned by shale gas development as nations seek to exploit their unconventional gas resources for export purposes or for the sake of domestic energy security.
While most of the proppant spending will take place in the Americas, and in the United States in particular, annual growth rates for other nations and regions are more aggressive, as the unconventional oil and gas boon spreads across the glove over the next 10 years. Of particular note are the proppants markets in Argentina, throughout the Americas, and in China; these nations and regions have extensive unconventional oil and gas reserves and the global trend toward natural gas as the dominant feedstock will ensure significant political and fiscal capital is spent developing them. Strong global oil prices and, in the case of markets outside North America, gas prices, further justifies such development and spending.
Visiongain calculates that the global market for proppants will reach US$8.85billion in 2014.
The company's team of London-based, in-house analysts provide further details in: Proppants Market Forecast 2014-2024: Frac Sand, Resin Coated Sand & Ceramic for Hydraulic Fracturing in Unconventional Oil & Gas report. The authors forecast spending on proppants and proppant volumes, by type and by region, and comprehensively lays out the market drivers and restraints, risks and trends, and discusses leading companies and their strategies in order to help the reader make a balanced decision regarding their investment or involvement.
National and regional market forecasts for proppant spending are included for the following market spaces: US; Canada; China; Argentina; rest of Asia; rest of Europe; Russia; Australia; rest of the Americas; rest of World, which includes market prospects for the Middle East and African regions, along with New Zealand.
The report identifies the most important companies in the global marketfor proppants: Carbo Ceramics; Saint-Gobain; US Silica; Hi Crush Partners; BorProp; Fores; Imerys; Fairmount Minerals; Mineração Curimbaba; and Momentive.
Image at right courtesy of Carbo Ceramics.