Boom Expected in North American Low Strength Proppants Market in Near Future

The global low strength proppants market generated a revenue of $3,713.3 million in 2019, and it is predicted to attain a value of $5,294.8 million by 2030. Furthermore, the market will progress at a CAGR of 9.8% between 2020 and 2030, as per the estimates of P&S Intelligence, a market research company based in India. The market is being driven by the surging exploration & production (E&P) activities and rapid technological advancements in crude oil discovery.

Another major factor fueling the expansion of the low strength proppants market is the increasing technological advancements and innovations being made in crude oil discovery around the world. The market is categorized, on the basis of end use, into coal-bed methane, crude oil, and shale gas. Amongst these, the crude oil category is predicted to exhibit the highest growth rate in the market in the coming years. This is because of the surging requirement for more crude oil exploration globally.

Moreover, many countries such as the U.S., the U.K., Russia, and Saudi Arabia are increasingly focusing on producing unconventional oil, which is, in turn, driving the demand for low strength proppants. As per the International Association of Energy Economics, unconventional oil accounted for 3.0% of the total crude oil production across the world in 2020. Additionally, the production volume of this oil will grow from 3.05 million barrels per day (mbpd) in 2020 to 3.75 mbpd by 2030.

Facility Expansions Being Seen as Key Move for Growth by Industry Players

To make the most of the high demand for oil and gas, companies offering proppants are expanding their production capacities, so they can supply as much of the material as possible to E&P firms.

For instance, Alpine Silica announced plans to construct a frac sand processing facility each in Fay, Oklahoma, and Van Horn, Texas, in June 2018. Apart from this expansion in the U.S., the company also secured nearly 51 million tons of frac sand reserves for the Oklahoma facility.

The most prominent players in the global low strength proppants market are Fairmount Santrol Holdings Inc., Superior Silica Sands LLC, U.S. Silica Holdings Inc., CARBO Ceramics Inc., Badger Mining Corporation, Preferred Sands, Saint-Gobain Proppants Inc., JSC “Borovichi Refractories Plant”, Black Mountain Sand LLC, Hi-Crush Inc., Atlas Sand Company LLC, Wisconsin Proppants LLC, Gongyi Tianxiang Refractory Materials Co. Ltd., and TEXAS SILICA.

Source: www.psmarketresearch.com