Proppants in North America

 Published On: Sep, 2015 |    No of Pages: 251 |  Published By: Freedonia | Format: PDF
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North American demand to grow over 8% annually
Demand for proppants in North America is forecast to increase over eight percent annually through 2019 to 152 billion pounds, with growth remaining healthy despite the current and expected low oil price environment. The emergence of the Permian Basin as a major tight oil play and a shift toward significantly higher volumes of water and proppant in hydraulic fracturing have been the main drivers of rapid change in the market over the past few years. While growth going forward will remain substantial, it is expected to slow through 2019, as low oil and gas prices hold back completion activity and proppant loading trends begin to stabilize.

Lower oil & gas prices will prevent growth in drilling
A period of high and relatively stable oil prices between 2011 and 2014 led to growth in well completion and hydraulic fracturing activity in the US and Canada, supporting gains in proppant demand. Among the most rapidly growing areas was the Permian Basin in Texas, with other areas of strong growth including the Niobrara in Colorado and the Utica in Ohio. Oil prices have fallen substantially since mid-2014, however, and are not expected to recover fully until after 2019. As a result, drilling activity in liquids- rich unconventional plays is projected to remain lower through 2019 than in 2014. Although export opportunities for natural gas should spur some increased drilling activity targeting gas, overall drilling and completion are expected to remain nearly flat.

Colorado, Oklahoma, Canada to offer best opportunities
While overall completion activity will be held back by the low oil and gas price environment, there remain several unconventional resource plays with significant room for future growth in well completions, creating above average opportunities for proppants. Among the largest proppant markets in the US, Colorado and Oklahoma are expected to hold the best short term prospects for growth, while Texas and Pennsylvania are forecast to grow more slowly. In large part, this will result from the relative maturity of the Eagle Ford shale in Texas and the Marcellus shale in Pennsylvania when compared to the less developed unconventional plays in the former states. Canada is expected to see very strong growth, as the country holds a large volume of tight oil and shale gas resources yet lags the US in their development, having focused investment more heavily on oil sands resources to date.

Proppant consumption per well to grow more slowly
Trends in hydraulic fracturing technology have favored greater volumes of water and increased loadings of proppant. This has coincided with a shift away from premium resin coated and ceramic proppants toward raw frac sand. Over the last few years, oil and gas companies and their service providers have found pumping large volumes of raw sand to provide a better return on investment than fracturing with more modest amounts of premium proppants. Although hydraulic fracturing technology is expected to continue evolving, the dramatic changes in fracturing practices are expected to decelerate, and proppant consumption per well is forecast to grow more slowly through 2019 than it has in recent years. While raw frac sand will continue to hold the vast majority of the market, ceramic proppants will remain important in areas with deeper and more challenging wells, and resin coated sand will continue to see use alongside raw sand in most areas.

Study coverage
This Freedonia industry study, Proppants in North America, presents historical demand data (2004, 2009 and 2014) plus forecasts (2019 and 2024) by product, region, state and province. This study also considers market environment factors, evaluates company market share and profiles 24 industry players.
INTRODUCTION

EXECUTIVE SUMMARY

MARKET ENVIRONMENT
General
Macroeconomic Environment
United States
Canada
Demographic Overview
Petroleum & Natural Gas Overview
Upstream Oil & Gas Activity
Petroleum Market Overview
Production & Consumption
United States
Canada
Pricing
Natural Gas Market Overview
Production
United States
Canada
Pricing
World Oil & Gas Outlook
World Petroleum Outlook
Reserves & Exploration
Production
Pricing Patterns
World Natural Gas Outlook
Reserves & Exploration
Production
Pricing Patterns
Environmental & Regulatory Considerations
International Activity

TECHNOLOGY OVERVIEW
General
Well Drilling & Completion
Horizontal Drilling
Well Completion
Hydraulic Fracturing
Multistage Fracturing
Refracturing
Proppant Technology
Unconventional Resource Development
Tight Oil
Shale Gas
Coalbed Methane

PROPPANT SUPPLY & DEMAND
General
Capacity & Production
Trade
Demand by Type
Raw Frac Sand
White Sand
Brown Sand
Other Raw Sand
Resin Coated Sand
Ceramic
Bauxite-Based
Clay-Based
Coated & Other Ceramics
Other Proppants
Proppant Pricing

REGIONAL PROPPANT MARKETS
General
United States
Proppant Demand
Southern Region
Market Environment
Proppant Demand
Texas
Louisiana
Arkansas
New Mexico
Other Southern Region
Midwestern Region
Market Environment
Proppant Demand
North Dakota
Oklahoma
Ohio
Kansas
Other Midwestern Region
Eastern Region
Market Environment
Proppant Demand
Pennsylvania
West Virginia & Other
Western Region
Market Environment
Proppant Demand
Colorado
Wyoming
Montana
Utah
Other Western States
Canada
Market Environment
Proppant Demand
Alberta
Other Canada

INDUSTRY STRUCTURE
General
Market Share
Raw Sand Proppant Market Share
Resin Coated Sand Market Share
Ceramic Proppant Market Share
Industry Restructuring
Competitive Strategies
Cooperative Agreements
Transportation & Logistics
Research & Development
Company Profiles
Atlas Resin Proppants, see Badger Mining
Badger Mining Corporation
Baker Hughes Incorporated
Cadre Services, see US Silica Holdings
CARBO Ceramics Incorporated
D&I Silica, see Hi-Crush Partners
Emerge Energy Services LP
EOG Resources Incorporated
Erna Frac Sand LC
Fairmount Santrol Incorporated
flexFrac Proppant Sand Suppliers LLC
Fores Limited
FTS International Services LLC
Halliburton Company
Hexion Incorporated
Hi-Crush Partners LP
Imerys SA
Messina Incorporated
Midwest Frac and Sands, see Emerge Energy Services
Mineração Curimbaba Limitada
Momentive Specialty Chemicals, see Hexion
Oilfield Technology Group, see Hexion
Pattison Sand Company LLC
Pioneer Natural Resources Company
Preferred Sands LLC
Premier Silica, see Pioneer Natural Resources
Saint-Gobain
SCR-Sibelco NV
Sierra Frac Sand LLC
Superior Silica Sands, see Emerge Energy Services
Texas Silica LLC
Unimin, see SCR-Sibelco
US Silica Holdings Incorporated

List of Tables

EXECUTIVE SUMMARY
Summary Table

MARKET ENVIRONMENT
Macroeconomic Indicators by Country
Population & Households
Oil & Gas Production & Consumption
Upstream Oil & Gas Activity Indicators
Crude Oil & Liquids Supply & Demand
Natural Gas Supply & Demand
World Crude Oil Proved Reserves by Country, 2014
World Crude Oil Field Production by Region
World Natural Gas Proved Reserves by Country, 2014

SECTION I -- TECHNOLOGY OVERVIEW

PROPPANT SUPPLY & DEMAND
North American Proppant Trade
North American Proppant Demand by Type
North American Raw Frac Sand Demand by Country
North American Resin Coated Sand Demand by Country
North American Ceramic Proppant Demand by Country & Type
Selected Proppant Pricing

REGIONAL PROPPANT MARKETS
North American Proppant Demand by Country
United States: Key Indicators for Proppant Demand
United States: Proppant Demand by Type & Region
Southern Region: Key Indicators for Proppant Demand
Southern Region: Proppant Demand by Type & State
Texas: Proppant Demand by Type
Louisiana: Proppant Demand by Type
Arkansas: Proppant Demand by Type
New Mexico: Proppant Demand by Type
Other Southern Region: Proppant Demand by Type
Midwestern Region: Key Indicators for Proppant Demand
Midwestern Region: Proppant Demand by Type & State
North Dakota: Proppant Demand by Type
Oklahoma: Proppant Demand by Type
Ohio: Proppant Demand
Kansas: Proppant Demand
Other Midwestern Region: Proppant Demand
Eastern Region: Key Indicators for Proppant Demand
Eastern Region: Proppant Demand by Type & State
Pennsylvania: Proppant Demand by Type
West Virginia & Other Eastern Region: Proppant Demand
Western Region: Key Indicators for Proppant Demand
Western Region: Proppant Demand by Type & State
Colorado: Proppant Demand by Type
Wyoming: Proppant Demand by Type
Montana: Proppant Demand by Type
Utah: Proppant Demand by Type
Other Western States: Proppant Demand by Type
Canada: Key Indicators for Proppant Demand
Canada: Proppant Demand by Type & Region
Alberta: Proppant Demand by Type
Other Canada: Proppant Demand by Type

INDUSTRY STRUCTURE
North American Proppant Sales by Company, 2014
Selected Acquisitions & Divestitures
Selected Cooperative Agreements

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