North America Proppants Market - Segmented by Technology, by Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The North America proppants market is expected to register a CAGR of 6.92% by volume during the forecast period, 2018-2023. The market demand for proppants is likely to be driven by the growing industrialization and increased need of energy, which has led to improvements in hydraulic fracturing technologies, followed by commercial extraction of unconventional gases, which has further resulted in significant growth in the demand for proppants. Proppants play an integral role in the fracking process
INCREASING USAGE OF FRAC SAND
Frac sands are mixed with water and different chemicals to fracture shale formations to unleash oil & natural gas reserves. Companies like US Silica (a leading producer of silica sands and Frac sands) have produced an even more premium quality frac sand that is coated with an oily resin, which allows crude oil to slip past more easily. The manufacturing of higher quality frac sands is further expected to increase the demand for frac sands. Furthermore, in response to the upcoming demand of frac sands, largest providers of fracking services like Halliburton, has more than doubled its fleet of ralicars, to about 3,500 as of June 2015, and increased the capacity of its sand terminals where sand is reloaded from trains to trucks. The trend of further optimization techniques in fracking is increasing demand for frac sand in per well.
Frac Sand to Dominate the Market
The frac sand proppants market in North America is estimated to register a CAGR of ~7% by volume during the forecast period (2018 - 2023). In 2017, frac sand is estimated to account to about 95% of the total proppants usage in North America, owing to its efficiency, low cost and easily availability. Frac sand proppants are the most widely used category of proppants for hydraulic fracturing in North America. Frac Sand proppants are made out of highly pure and durable sand with round grains. They are majorly made out of sandstone or bauxite. Their size ranges from about 0.1 millimeter in diameter to 2 millimeter in diameter, depending on the requirement of the fracking job. A large portion of the frac sands produced in the country are extracted from the sand mines of St. Peter Sandstone and Cambrian Jordan formation.
United States to Lead the Market
United States is one of the leading countries globally in terms of exploration of unconventional crude oil reserves and application of hydraulic fracturing for the same. The amount of oil produced from hydraulically fractured wells has been increasing significantly in comparison to the oil produced from the conventionally fractured wells. The number of hydraulically fractured wells has risen to approximately 300,000 with large contributions from the Bakken formation, Eagle Ford formation and Permian Basin.
The rising hydraulic fracturing applications in the United States, especially for shale gas and tight oil purposes have a positive impact on the demand for proppants. Frac sand is the most widely used proppant, while resin-coated and ceramic sands are used for specific applications involving greater production depths and thermal resistance. Despite the recent drop in the crude oil prices, the natural gas exports of the country are propelling thus growing the production demand from the majorly producing Shale formations.
Notable Developments in the market
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