Middle East and Africa Proppants Market - Segmented By Material Type and Geography - Growth, Trends and Forecasts (2017 - 2022)
The Middle East and African proppants market is expected to see a healthy rise due to the presence of immense shale gas reserves in Algeria, South Africa and Libya. The governments in these countries are also showing willingness to pursue hydraulic fracturing. Algeria holds the fourth largest recoverable shale gas reserves after China, USA and Argentina. After Algeria announced its intention to tap shale gas reserves, the first wells were drilled in 2011 and the supply was sold in the European gas market.
Proppants are sand or other granular substances injected into the fractures to hold or open formation fractures created by hydraulic fracturing. Although proppants have been used in oil and gas production for 70 years, the recent emergence of horizontal drilling technology and multistage hydraulic fracturing along with the advent of shale gas extraction have created new opportunities for growth in the early and mid-2000s.
An initial imposition of a moratorium on fracking in April 2011 by the South African government was lifted later on in September 2012 after the realization that fracking was in the best interest of the country. Several energy companies were subsequently granted exploration licenses. However, water shortages remain a major grievance in the entire region. Sonatrach, an Algerian hydrocarbons company, has entered into agreements with a number of multi-nationals, including Shell, ENI and Talisman. A hydrocarbons law amended in 2012 has made it easier for foreign companies to invest in the shale gas sector, allowing for tax breaks and variable royalty taxes.
Market Dynamics of the Middle East and African Proppants Market
New drilling techniques that employ proppants
Improvements in the fracturing industry
Environmental norms on the use of the proppants
Middle East and Africa Proppants Market Segmentation
Proppants can be categorized into three types, namely, frac sand, resin coated and ceramic. Frac sand is the most inexpensive and accounts for 80% share of the demand. This demand will continue to account for the largest chunk of the market due to cost advantages. Improved fracturing techniques have allowed sand to be used in applications previously thought to be beyond its performance range. It performs suitably in most conditions except in wells with high closure pressures. Due to their higher cost, ceramic proppants will be limited to areas requiring high performance products. Their market will grow at a higher rate mainly because of their reliability in extreme conditions. Resin coated proppants are also expected to grow due to the relative cost advantages over ceramic proppants and performance advantage over frac sand. The market can be segmented based on geography into Algeria, South Africa, Libya and others.
The report studies the major market players for insights into the recent developments, financials and products & services offered. Some of the key players in this market are:
Superior Silica Sands
U.S. Silica Holdings
Key Deliverables in the Study:
Analysis for the Middle East and African proppants market, with region specific assessments and competition analysis.
Market definition along with the identification of key drivers and restraints.
Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market on a regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their market share.
Identification and analysis of the macro and micro factors that affect the Middle East and African proppants market on a regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market.
Insights on the major countries/regions where this industry is growing and to also identify the regions that are still untapped.