Fracking Proppants Market Forecasts to 2028 – Global Analysis By Product (Resin Coated Proppants, Ceramic Proppants), Application (Coal Bed Methane, Tight Gas, Shale Gas) and By Geography

Fracking Proppants Market Forecasts to 2028 – Global Analysis By Product (Resin Coated Proppants, Ceramic Proppants), Application (Coal Bed Methane, Tight Gas, Shale Gas) and By Geography

According to Stratistics MRC, the Global Fracking Proppants Market is accounted for $156.57 billion in 2022 and is expected to reach $412.04 billion by 2028 growing at a CAGR of 17.5% during the forecast period. Fracking proppant is a hard material used to seize open cracks in the wellbore which are generated by the procedure of hydraulic fracturing, providing a conduit for hydrocarbons to access the wellbore. Hydraulic fracturing involves the usage of a fluid mixture consisting of one or more additives, typically water as a base fluid and a proppant such as sand. The mixture is pumped into a well under pressure with the help of pumps at the surface to bring fractures in the target zone or the geological development.

According to EIA, the production from shale gas and tight oil will increase from about 14 trillion cubic feet (Tcf) in 2015 to 29 Tcf in 2040, thereby enhancing the market demand. As per the statistics provided by the US Energy Information Administration (EIA), the natural gas production globally is expected to increase from 342 billion cubic feet per day in 2015 to 554 billion cubic feet per day (bcf/d) by the year 2040.Canada has been producing shale gas since 2008, and the production is expected to increase and to account for 30% of Canada’s total natural gas production by 2040. According to the US Energy Information Administration (EIA), the crude oil production reached 12.23 million barrels per day (b/d) in 2019, 1.24 million b/d more than 2018 levels in United States. In the Offshore Federal Gulf of Mexico (the U.S. controlled waters in the Gulf of Mexico), new projects contributed to the region’s growth in production in 2019. Oil and natural gas producers brought online seven new projects in 2019, with nine more projects being expected to come online by the end of 2020.

Market Dynamics:

Driver:

Directional Drilling and Hydraulic Stimulation Technology

Reversing drilling and hydraulic stimulation techniques have been the driving forces behind the recovery of unconventional energy resources including shale gas, tight sands gas, and coal bed methane. Natural gas is trapped in fine, isolated porosity and adsorbed onto the shale's other organic elements. Because of the shale's somewhat impermeable character, more surface area must be created in order to recover trapped natural gas in commercially acceptable volumes. Directional drilling allows high recovery rates from intersecting cracks in the shale, whereas hydraulic stimulation fractures the shale to offer the large surface area necessary for gas retrieval. Hydraulic stimulation, often known as hydrofracturing in the industry, is a crucial method for developing and maintaining high-permeability channels for resource recovery throughout the well's life. This is generally accomplished by injecting slurry of surfactants, corrosives, and aggregates into the well bore under pressure to induce and sustain fractures. This act as one of the driver for the market growth.

Restraint:

High cost

Ceramic proppants is an engineered product manufactured from sintered bauxite, kaolin, and magnesium silicate or mixtures of bauxite and kaolin using an energy-intensive manufacturing process. This manufacturing process is complex as the proppants must have uniform size, shape, sphericity, and roundness to yield higher porosity and permeability of the proppants bed. Ceramic proppants have higher strength and crush resistance than frac sand, as they can withstand closure stresses up to 20,000 psi. Ceramic proppants are costlier than uncoated or resin-coated proppants as it is an engineered product with a more complex manufacturing process.

Opportunity:

Investigation of unconventional oil and gas reserves growing

One of the most active fields of the geological sciences is hydrocarbon exploration. Petroleum geologists tasked with finding oil and natural gas confronts a challenging task: oil and gas reserves are difficult to locate, and drilling in the incorrect location loses time and resources. Furthermore, the traditional oil supply has reached its limit, while demand for liquid fuels continues to rise. To solve the oil supply and demand dilemma, one method is to look for new, unconventional oil sources. Unconventional oil is defined differently by different people, although it commonly refers to oil shale, oil sands, ultra-deepwater oil, extremely heavy oil, tight oil, and Arctic oil. Unconventional oils are heavier and contain more carbon and sulphur than standard oils. They also contain contaminants, making refinement more challenging. In comparison to their more easily available conventional equivalents, unconventional oils are more difficult to extract and require specific equipment and technology to deal with their location and/or composition.

Threat:

Water accessibility and contamination concerns

Companies generally use a range of water sources such as rivers, lakes, groundwater, discharge water from industrial or city wastewater treatment plants, and re-used fracturing water. Temporary pipelines or trucks are used to carry the water to drilling locations. Companies attempt to use a mix of water sources depending on the region and the proximity of water sources. On average, 3 million gallons of water is required per well for hydraulic fracturing. However, this quantity varies widely across provinces. It also depends on how many stages of fracturing are conducted at a well. There are two distinct problems concerning water use in hydraulic fracturing. First, the limited availability of water for hydraulic fracturing, and second, concerns related to water contamination due to fracturing chemicals. The COVID-19 outbreak has negatively impacted the proppants industry due to supply chain disruption, operational challenges, transportation delays, and travel restrictions. The oil and gas sector has been severely affected by the pandemic and has postponed exploration activities.

The Shale Gas segment is expected to be the largest during the forecast period

The Shale Gas segment is expected to be the largest during the forecast period. The growing application of proppants is predictable to boost this segment in the coming years. Shale gas, which comprises 70 to 90 percent of methane, helps generate electricity and acts as a domestic source for heating and cooking.

The Frac Sand segment is expected to have the highest CAGR during the forecast period

The Frac Sand segment is expected to have the highest CAGR during the forecast period. Frac sandare high-purity quartz sand which is very round and durable grains. They offer crush-resistant, which helps them to be used as a fracking material in the petroleum industry.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period, owing to the high-rise of hydraulic fracking in the province. Hydraulic fracking involves the use of proppants for the extraction of energy sources such as shale gas and tight gas. Furthermore, the rising demand for unconventional energy sources due to their several advantages over conventional sources in terms of pollution has led to the rise in hydraulic fracking along with horizontal drilling in the province. This has led to a rise in regional demand.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, due to the existence of enormous shale gas reserves and hydraulic fracturing projects in China and Australia coupled with potential shale gas extraction projects in India. Governments of countries like China and India have announced plans to develop shale gas reserves as a part of their 12th five-year plans, which is anticipated to have a positive impact on market growth.

Key players in the market

Some of the key players profiled in the Fracking Proppants Market include Yixing Orient Petroleum Proppant Co. Ltd, Unimin Corporation, U.S. Silica, Saint-Gobain, Preferred Sands, COVIA, Mineracao Curimbaba Ltd, Hi crush LP Partners, Fores Ltd, Fairmount Santrol, Carbo Ceramic, Baker Hughes, Atlas Resin Proppants LP, COVIA.

Key Developments:

In May 2019, Hi-Crush Inc. acquired Proppant Logistics LLC which owns Pronghorn Logistics LLC. The company provides end-to end logistic services for proppants.

In December 2021: Covia, announced that its Industrial Segment will adopt a price rise of up to 15% across all product lines beginning January 1, 2022. This step is important to assist balance sustained and considerable inflationary pressures in a variety of sectors, including energy, steel, packaging, transportation, labour, resins, and additives, and will enable Covia to retain its service and value to industrial clients.

Fracturing Technologies Covered:
• Natural Induced Hydraulic Fracturing
• Polylactic Acid Base Fiber Technology
• Induced Hydraulic Fracturing

Products Covered:
• Resin Coated Proppants
• Ceramic Proppants
• Frac Sand

Applications Covered:
• Coal Bed Methane
• Tight Gas
• Shale Gas

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements