Proppants Market in North America by Type and Location, 3rd Edition

West Texas Sand: A New Source for Raw Frac Sand

Proppants

Recent demand for proppants has surged, driven by the combination of a recovering oil and gas industry and increased the volume of proppants used per well. As a result, prices are expected to climb for proppants, making transportation costs, which can be substantial for a commodity level product, a big factor in product decisions. West Texas sand development will help calm some of the worries of the cost of sand. Three major sand suppliers have made significant investments in the region’s sand resources, hoping to make them available to the most heavily drilled area in the US, the Permian Basin. Hi-Crush, Unimin, and US Silica have made recent investments to expand production of the newly discovered sand in West Texas.

Key Findings in the Proppants Market in North America Study:

Completion Activity Continues to Recover

In 2014, the benchmark price for oil collapsed due to the global oil glut. Drilling and completion activity throughout North America declined, with 2016 activity falling to a quarter of 2014 levels. However, prices have started to trend in an upward direction, aided by a motivated OPEC, who has restrained production, in member and agreeing non-member states, to stimulate price growth. Increased prices have allowed operators to have a modest return to exploration and development in oil and gas plays, focusing on the most economical regions. Completion activity is expected to continue to grow through 2021, although it is not expected to approach pre-price crash levels. Additionally, improved efficiencies and technology have allowed some additional completion activity, shifting the breakeven costs in the favor of drillers.

Proppant Loadings Are Increasing

The volume and density of proppants used in hydraulic fracturing continue to rise. Drillers are pumping more sand and other proppants into the wellbore to increase the initial and total production of oil and gas they can yield from a low permeability rock layer. Coupled with the improvements in unconventional technology, many of which require more proppant, these efforts point toward one eventuality -- more proppant. Wells are now seeing, on average, 10 million pounds per unconventional well. The infrastructure required to deliver that amount of material puts its size in perspective; on average, ten million pounds of sand takes 100 rail cars and 400 trucks to deliver.

Unconventional Technology Drives Proppant Demand

Operators and drilling service companies have improved their techniques for hydraulic fracturing unconventional resources. Wells are now being drilled with longer laterals, more frac stages, and more frac clusters. Today’s well laterals can reach well over 10,000 feet and have over 100 stages. Additionally, with the increased use of multilateral wells and multi-well pads, today’s wells (and pads) need more proppant to fracture them completely. While it is assumed this trend of pushing well complexity will plateau, either from too much additional cost or due to diminishing returns, it does not appear to have occurred quite yet.

Raw Frac Sand is Taking Over

Raw frac sand continues to gain market share from competing proppants, like resin coated sand, ceramic proppants, and other specialty proppants. The low benchmark price environment has pushed operators and oilfield service companies to seek the cheapest proppants available, especially given the increased volumes. Raw frac sand is by far the most economical solution. In addition, the sand mined in the US, especially Northern White sand, is high quality, displaying strong enough characteristics to prop most well conditions in the US. The crush strength and roundness/sphericity allow US frac sand to be a highly conductive option for drillers and completion crews.

Study Coverage

This study presents historical data (2006, 2011, and 2016) and forecasts (2021) by type (raw frac sand, resin coated sand, ceramic proppants) and location (Texas, Oklahoma, Ohio and Pennsylvania, Colorado, North Dakota, Louisiana, New Mexico, Alberta) in pounds and US dollars. The study also evaluates key industry players in the proppants market.

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  1. Proppants Market in North America by Type and Location, 3rd Edition

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    1. 1 EXECUTIVE SUMMARY

      $323.00

      1. Figure 1-1 | North America: Proppants Overview

    2. 2 OVERVIEW

      $3,710.00

      1. 2.1 Key Findings

        $82.00

        1. Figure 2-1 | North America: Key Trends in Proppants

      2. 2.2 Proppants Demand by Country & Type

        $305.00

        1. Table | North American Proppant Demand by Location & Type, 2006 - 2021

      3. 2.3 Historical Completion Activity

        $212.00

        1. Figure 2-2 | North America: Wells Completed, 2006 - 2016

      4. 2.4 Completion Forecast

        $235.00

        1. Table | Oil & Gas Completion Indicators, 2006 - 2021

      5. 2.5 Proppant Demand by Well Type

        $248.00

        1. Table | Proppant Demand by Well Type, 2006 - 2021

      6. 2.6 Factors Impacting Proppant Demand

        $1,573.00

        1. 2.6.1 Historical Oil & Gas Price Volatility

          $171.00

          1. Figure 2-3 | Oil & Gas Prices, 2006 - 2016

        2. 2.6.2 Oil & Gas Price Forecasts

          $187.00

          1. Table | Oil & Gas Benchmark Prices, 2006 - 2021

        3. 2.6.3 Drilling & Completion Costs

          $206.00

          1. Table | US Exploration & Development Costs per Well Drilled, Selected Operators, 2014 - 2016

        4. 2.6.4 Technological Advancements

          $786.00

        5. 2.6.5 Global Activity

          $220.00

      7. 2.7 Capacity & Production

        $559.00

        1. 2.7.1 Raw Sand Processing Facilities

          $432.00

          1. Table | Selected Raw Sand Processing Facilities

        2. 2.7.2 Ceramic & RCS Proppant Production Facilities

          $125.00

          1. Table | Selected Ceramic and RCS Proppant Production Facilities

      8. 2.8 Proppant Pricing

        $168.00

        1. Table | Selected Proppant Pricing, 2006 - 2021

      9. 2.9 Environmental & Regulatory Considerations

        $337.00

        1. 2.9.1 United States

          $277.00

        2. 2.9.2 Canada

          $82.00

    3. 3 DEMAND BY TYPE

      $2,015.00

      1. 3.1 Key Findings

        $82.00

        1. Figure 3-1 | Proppant Demand by Type: Key Trends

      2. 3.2 Scope

        $136.00

        1. Figure 3-2 | Proppant Type Common Characteristics

      3. 3.3 Proppant Demand by Type

        $361.00

        1. Figure 3-3 | Proppant Demand by Type, 2016

        2. Table | North American Proppant Demand by Type, 2006 - 2021

      4. 3.4 Raw Frac Sand

        $696.00

        1. Figure 3-4 | Raw Frac Sand Demand by Type, 2016

        2. Table | North American Raw Frac Sand Demand by Country, 2006 - 2021

        3. 3.4.1 Northern White Sand

          $129.00

        4. 3.4.2 Brown (Brady) Sand

          $134.00

        5. 3.4.3 Other Raw Sand

          $110.00

      5. 3.5 Resin-Coated Sand

        $276.00

        1. Table | North American Resin-Coated Sand Demand by Country, 2006 - 2021

      6. 3.6 Ceramic & Other Specialty Proppants

        $473.00

        1. 3.6.1 Ceramic Proppants

          $333.00

          1. Table | North American Ceramic & Other Proppant Demand by Country, 2006 - 2021

        2. 3.6.2 Other Specialty Proppants

          $137.00

    4. 4 DEMAND BY LOCATION

      $4,158.00

      1. 4.1 Key Findings

        $82.00

        1. Figure 4-1 | Proppant Demand by Region: Key Trends

      2. 4.2 Proppant Demand by Location

        $212.00

        1. Table | North American Proppant Demand by Country, 2006 - 2021

        2. Figure 4-2 | North American Proppant Demand Volume Growth, 2016 - 2021

      3. 4.3 United States

        $2,885.00

        1. 4.3.1 United States: Completion Activity

          $274.00

          1. Table | United States: Key Indicators for Proppant Demand, 2006 - 2021

        2. 4.3.2 United States: Proppant Demand

          $2,610.00

          1. Table | United States: Proppant Demand by Type & Region, 2006 - 2021

          2. Figure 4-3 | Texas: Proppant Demand, 2006 - 2021

          3. Table | Texas: Proppant Demand by Type, 2006 - 2021

          4. Figure 4-4 | Oklahoma: Proppant Demand, 2006 - 2021

          5. Table | Oklahoma: Proppant Demand by Type, 2006 - 2021

          6. Figure 4-5 | Ohio & Pennsylvania: Proppant Demand, 2006 - 2021

          7. Table | Ohio & Pennsylvania: Proppant Demand by Type, 2006 - 2021

          8. Figure 4-6 | Colorado: Proppant Demand, 2006 - 2021

          9. Table | Colorado: Proppant Demand by Type, 2006 - 2021

          10. Figure 4-7 | North Dakota: Proppant Demand, 2006 - 2021

          11. Table | North Dakota: Proppant Demand by Type, 2006 - 2021

          12. Figure 4-8 | Louisiana: Proppant Demand, 2006 - 2021

          13. Table | Louisiana: Proppant Demand by Type, 2006 - 2021

          14. Figure 4-9 | New Mexico: Proppant Demand, 2006 - 2021

          15. Table | New Mexico: Proppant Demand by Type, 2006 - 2021

          16. Figure 4-10 | Other Locations: Proppant Demand, 2006 - 2021

          17. Table | Other US Locations: Proppant Demand by Type, 2006 - 2021

      4. 4.4 Canada

        $978.00

        1. 4.4.1 Canada: Completion Activity

          $214.00

          1. Table | Canada: Well Completions, 2006 - 2021

        2. 4.4.2 Canada: Proppant Demand

          $763.00

          1. Table | Canada: Proppant Demand by Type & Province, 2006 - 2021

          2. Figure 4-11 | Alberta: Proppant Demand, 2006 - 2021

          3. Table | Alberta: Proppant Demand by Type, 2006 - 2021

          4. Figure 4-12 | Other Canada: Proppant Demand, 2006 - 2021

          5. Table | Other Canada: Proppant Demand by Type, 2006 - 2021

    5. 5 INDUSTRY STRUCTURE

      $2,846.00

      1. 5.1 Key Findings & Industry Composition

        $244.00

        1. Table | North American Proppant Sales by Company, 2016

      2. 5.2 Industry Composition

        $151.00

      3. 5.3 Market Share

        $660.00

        1. Figure 5-1 | North American Proppant Market Share, 2016

        2. Figure 5-2 | North American Raw Frac Sand Proppant Market Share, 2016

        3. Figure 5-3 | Raw Sand Proppant: Overall Leading Supplier

        4. Figure 5-4 | Raw Sand Proppant: Second Leading Supplier

        5. Figure 5-5 | Raw Sand Proppant: Third Leading Supplier

        6. Figure 5-6 | North American Resin-Coated Sand Market Share, 2016

        7. Figure 5-7 | North American Ceramic Proppant Market Share, 2016

      4. 5.4 Manufacturing

        $157.00

        1. Table | Proppants Manufacturers

      5. 5.5 Competitive Strategies

        $210.00

      6. 5.6 Industry Restructuring

        $349.00

        1. Table | Selected Acquisitions & Divestitures

      7. 5.7 Cooperative Agreements

        $244.00

        1. Table | Selected Cooperative Agreements

      8. 5.8 Transportation & Logistics

        $175.00

      9. 5.9 Marketing

        $96.00

      10. 5.10 Research & Development

        $247.00

      11. 5.11 List of Industry Participants

        $312.00

    6. 6 APPENDIX

      $1,804.00

      1. 6.1 Scope

        $85.00

      2. 6.2 Methodology

        $113.00

      3. 6.3 Sources

        $82.00

      4. 6.4 Associations & Agencies

        $82.00

      5. 6.5 Related Freedonia Group Studies

        $82.00

      6. 6.6 Definitions

        $359.00

      7. 6.7 Abbreviations

        $87.00

        1. Table | Abbreviations Used in Study

      8. 6.8 Macroeconomic Assumptions

        $927.00

        1. 6.8.1 Economic Environment

          $135.00

          1. Table | Macroeconomic Indicators by Country, 2006 - 2021

        2. 6.8.2 Demographics

          $151.00

          1. Table | Population & Households, 2006 - 2021

        3. 6.8.3 US Oil & Gas Production Outlook

          $346.00

          1. Table | Crude Oil & Liquids Supply & Demand, 2006 - 2021

          2. Figure 6-1 | Crude Oil Production, 2006 - 2021

          3. Table | Natural Gas Supply & Demand, 2006 - 2021

          4. Figure 6-2 | Natural Gas Production, 2006 - 2021

        4. 6.8.4 Global Oil & Gas Production Outlook

          $293.00

          1. Table | World Crude Oil Field Production by Region, 2006 - 2021

          2. Figure 6-3 | World Crude Oil Field Production by Region, 2016

          3. Table | World Natural Gas Production by Region, 2006 - 2021

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