Surge in Oil Production To Facilitate Low Strength Proppants Sale

The EIA states that shale gas production in the U.S. increased from 25,556 billion cubic feet in 2019 to 26,139 billion cubic feet in 2020. The organization also states that crude oil production in the U.S. will surge from 12.0 million b/d in 2022 to 12.6 million b/d by 2023. The increasing production of conventional and non-conventional and conventional oil in North America is expected to create a huge requirement for low strength proppants, as these solid materials increase the flow of oil and gas during the hydraulic fracturing process.

Moreover, the ongoing technological advancements in the crude oil recovery process will help the low strength proppants market grow at a CAGR of 9.8% during 2020–2030. According to P&S Intelligence, the market was valued at $3,713.3 million in 2019, and it will generate $5,294.8 million revenue by 2030. Nowadays, market players in the APAC and North American regions are making massive investments in advanced exploration technologies to ensure an easy recovery process and high business growth.

In contemporary times, the highest volume of low strength proppants was used in the production of crude oil, due to the presence of a large number of unconventional oil reserves across the world. Countries such as Russia, the U.K., the U.S., and Saudi Arabia are increasingly focusing on the production of crude oil from unconventional sources and exploration of oil reserves. In addition to crude oil production, oil and gas companies also use low-density proppants in the E&P of shale gas and coal-bed methane.

At present, the low strength proppants market is consolidated in nature, due to the presence of several large-scale players, such as Black Mountain Sand LLC, Superior Silica Sands LLC (a subsidiary of Emerge Energy Services LP), Fairmount Santrol Holdings Inc., U.S. Silica Holdings Inc., Hi-Crush Inc., Carbo Ceramics Inc., and Atlas Sand Company LLC. In recent years, these companies are immensely focusing on geographical and facility expansions to attain a significant position.

For instance, in August 2018, Black Mountain Sand LLC started a facility in Western Oklahoma’s Mid-Continent to produce 3 million tons of sand every year. This 1,290-acre facility is situated in Blaine County of Oklahoma. In the same vein, Alpine Silica added two new plants – Fay in Oklahoma and Van Horn in Texas – to its existing portfolio in the Permian Basin. This company offers frac sand for the oil and gas industry to increase recovery rates.

Globally, the North American region held the largest share in the low strength proppants market in the preceding years, owing to the surging number of drilled wells and increasing discovery of unconventional oil and gas reserves in the U.S. and Canada. Moreover, mounting investments being made by oil and gas companies in production activities will also attribute to the market growth in the region. On account of these factors, the regional market will display the fastest growth throughout this decade.

Therefore, the increasing oil production and the ongoing technological advancements in the oil recovery process will create a massive requirement for low proppants in the future.

Read more: https://www.psmarketresearch.com/market-analysis/low-strength-proppants-market-outlook