BCC Research announced in its report, “Fracking Proppants: Global Markets,” that increasing industrialization has resulted in significant growth in demand for hydraulic proppants.
According to the report, growing industrialization has led to an increased need for energy with expansion being driven by China, India, Brazil and Russia. It says the U.S. may become largely independent of fossil fuel imports, while other European consumers, along with China and India, are preparing for increased dependency.
The most commonly used proppant is silica sand, says the report, and in the U.S., demand for proppants is primarily from the shale oil industry. In addition, as the production of shale gas increases, so do proppant sales.
“While most of the proppant spending will take place in the Americas and in the U. S. in particular, annual growth rates for other nations and regions are more aggressive, as the unconventional oil and gas boon spreads across the globe over the next ten years,” says BCC Research analyst Tanmay Joshi. “Of particular note are the proppants markets in Argentina, throughout the Americas and in China. These nations and regions have extensive unconventional oil and gas reserves, and the global trend toward natural gas as the dominant feedstock will ensure significant political and fiscal capital are spent developing them.”
The report also includes forecasted revenue through 2019 and market dynamics of fracking proppants throughout the world.
