The World Shale Resource Assessments released by the U.S. Energy Information Administration (EIA) estimates that Canada, the U.S., Mexico, Australia, Brazil, Russia, Germany, the U.K., South Africa, China, India, and Thailand have 572.9 trillion cubic feet (TCF), 622.5 TCF, 545.2 TCF, 429.3 TCF, 244.9 TCF, 284.5 TCF, 17.0 TCF, 25.8 TCF, 389.7 TCF, 1115.2 TCF, 96.4 TCF, and 5.4 TCF of unproved technically recoverable wet shale gas, respectively. The discovery of new reservoirs of shale gas creates a huge requirement for frac sand, as it breaks the pores in reservoirs to bring the gas to the surface.
Thus, the increasing requirement for frac sand is expected to accelerate the proppant market at a CAGR of 9.5% during 2018–2023. According to P&S Intelligence, the market revenue stood at $6,057.0 million in 2017 and it will reach $10,562.9 million by 2023. Proppant refers to a solid material that is used to keep hydraulic fractures open during the hydrofracking treatment of reservoirs. This material is available in different sizes and sphericity to optimize well productivity.
Globally, the North American region dominated the proppant market in the last few years due to the introduction of longer laterals to increase natural gas production, moderate recovery in oil prices, and surge in material loading levels in the U.S. and Canada. Moreover, the surge in hydraulic fracturing activities will also lead to the large-scale consumption of proppants in the region. Further, the Asia-Pacific (APAC) region is also expected to use a considerable volume of proppants in the foreseeable future, owing to the soaring popularity of sand materials and burgeoning production of unconventional natural gas.
Therefore, the rapid discovery of shale gas reservoirs and extensive requirement for ceramic and resin-coated materials in the oil and gas sector will augment the consumption of proppants globally.
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