PropTester, Inc. and KELRIK LLC announce the 2018 Proppant Market Report will be released on March 4, 2019.  The Proppant Market Report is an annual review of the global proppant market in relation to prior years.  The proppant industry supplied 230 billion pounds (115 million tons) of sand, ceramic and resin coated proppants in 2018. 

In addition to setting historical highs for frac sand, the industry surpassed one trillion cumulative pounds of proppant since hydraulic fracturing commenced.  “Based on our data commencing 1980, and accounting for estimated and select known annual volumes as far back as 1950, the one trillionth pound of proppant was very likely produced in early 2018.  That is a suitable number to highlight the growing importance of the proppant industry and to mark the 15th year of the report’s inception,” noted Brian Olmen of KELRIK LLC.

Frac sand was the primary beneficiary in 2018.  Demand for ceramic proppants also improved due to activity outside of North America.  Demand for ceramic and resin coated proppants were below their historical highs established in 2014.

North American frac sand capacity continues to grow and surpassed 440 billion pounds from 150 production facilities in early 2019.  “With the significant increase in capacity, the sand industry, much like the North American ceramic and resin coated proppant sectors, will possibly have to navigate the impacts of excess supply in an uncertain 2019,” added Michelle Stribling of PropTester, Inc.  “Due to the dominance of cost conscious, sand-intensive completion strategies, we continue to expand the report with additional details on emerging sand sources as well as updates on ongoing technical studies.”

The Proppant Market Report (PMR) is annually by PropTester, Inc. and KELRIK, LLC. The contributing authors have over 100 years of direct experience in the production, testing, sale and use of all types of proppants. PMR subscribers have access to an electronic copy of the confidential report, as well as online access and interactive maps on www.proppantmarketreport.com . For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com.

 

Michelle Stribling

PropTester, Inc.

713-826-5971

mstribling@proptester.com

 

PropTester, Inc. and KELRIK LLC announced the release of the 2016 Proppant Market Report on March 1, 2017. The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years. The report will also be available at www.proppantmarketreport.com.

Since the inception of the report in 2004, demand values are predominantly based on voluntary disclosures directly from proppant producers. Whereas proppant demand decreased from the 110 billion pounds (55 million tons) supplied in 2015, 2016 is still the third highest demand value recorded. Similar to 2015, high intensity completions and product substitution toward lower-cost natural proppants favored natural sand producers.

The more active facilities were frac sand producers with production facilities located closer to key active basins and/or those who favorable mine yields skewed toward finer mesh sands, notably 40/70 and 100 mesh. Demand for premium proppant (ceramic and resin coat) was significantly reduced for the second year in a row.

Notable for industry is that frac sand capacity continues to grow, and currently exceeds 250 billion pounds (125 million tons) of all grades from 65 frac sand companies. The report further references 27 pending new sand operations, several of which are actively under construction.

The Proppant Market Report is produced by PropTester, Inc. and KELRIK, LLC. The contributing authors have over 100 years of direct experience in the production, testing, sale and use of all proppant types. All Proppant Market Report subscribers will have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com.

PropTester, Inc. and KELRIK LLC announced the release of the 2015 Proppant Market Report on March 1, 2016.  The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years.  The report will also be available to subscribers at www.proppantmarketreport.com.

Producers of frac sand, ceramic proppants and resin-coated proppants indicate that approximately 110 billion pounds (55 million tons) were supplied in 2015.  Despite significantly reduced rig count activity and depressed energy prices, 2015 is the second largest year in terms of total proppant volumes supplied. 

North America continued to drive demand. Over 60 sand, ceramic and resin coat companies were actively engaged in proppant production in North America alone, with the five largest producers accounting for over 50 percent of total demand.

Whereas all proppant types experienced constriction compared to the 135 billion pounds supplied in 2014, frac sand was the least impacted.  High proppant intensity completions and product substitution toward lower cost natural proppants benefitted sand producers.  Frac sand accounted for over 92 percent of the 2015 market, whereas ceramic proppant and resin-coated proppant volumes both declined significantly to levels not seen since 2010.  All proppant types have and continue to feel the impact of excess capacity and pricing weakness.  Additional details regarding idled and postponed capacity has been added to the report.

The new website, www.proppantmarketreport.com, offers a digital copy of the report for customers along with access to an interactive map outlining information including location, current capacity and other central information on over 100 current proppant suppliers. “Customers are looking for quality proppant in close proximity to the well site. This website is a technological tool to better allow our customers to be updated throughout the year on the evolving proppant market,” explained Ian Renkes, co-author and Manager of Operations and Business Development at PropTester, Inc.

The Proppant Market Report is produced by PropTester, Inc. and KELRIK, LLC. The contributing authors have over 100 years of direct experience in the production, testing, sale and use of all types of proppants. All Proppant Market Report subscribers will have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com.

PropTester and KELRIK, LLC announced the launch of www.ProppantMarketReport.com, an online version of the annual Proppant Market Report.

The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years and serves as a vital industry report for proppant suppliers, consumers and investors. The online version includes an interactive map and product locator that will be continuously updated for annual subscribers.

After a record breaking 135 billion-pound year in 2014, the sustained drop in energy prices has caused proppant companies, along with other oil and gas service and material companies, to significantly lower prices, reduce employment and cut both operational costs and capital budgets. The proppant industry is not immune to market cyclicality, but unprecedented growth in proppant supply prior to the downturn combined with a significant switch in proppant usage by both type and grade has resulted in substantial operational and logistical challenges throughout the supply chain. The increased number of suppliers and product capacity relative to prior industry downturns has exacerbated price instability to levels not seen since 1985/1986.

In the first half of 2015, performance was slightly better than expected in terms of total sand volumes, trending to nearly 90 percent of the levels seen in the first half of 2014. Ceramic proppant and resin-coated proppant sales have diminished significantly as a result of product substitution toward lower cost, uncoated sand. Although improvements in the third quarter (3Q) of 2015 are expected for sand, optimism for a sustained recovery for all proppant types through 4Q 2015 is now unlikely. Continuation of low energy prices and significantly reduced E&P capital budgets will impede 4Q 2015 performance, particularly in comparison to a robust 4Q 2014 which was largely unaffected by traditional seasonality.

The new website, www.proppantmarketreport.com, offers a digital copy of the existing report for customers, along with access to an interactive map outlining information including location, current capacity and other central information on over 100 current proppant suppliers. “Customers are needing specific proppant quality within a reduced price band in close proximity to the well site or transport corridor. This website is designed to be an evolving tool to better allow our customers to be updated throughout the year on proppant supply options and status,” explained Ian Renkes, co-author and Manager of Operations and Business Development at PropTester, Inc. “In addition to various sand, ceramic and resin-coating plants being idled or delayed, we still continue to see new proppant ventures enter the marketplace.”

The Proppant Market Report is produced by PropTester, Inc. and KELRIK, LLC. The contributing authors have over 100 years of direct experience in the production, testing, sale and use of all types of proppants. All customers who purchase the Proppant Market Report have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com.

PropTester, Inc. and KELRIK, LLC announced the release of the 2014 Proppant Market Report (PMR) on February 23, 2015. The annual report is a detailed overview of the global proppant market in relation to prior years and serves as a key industry report for proppant suppliers, consumers and investors.

Industry supplied in excess of 135 billion pounds of sand, ceramic, and resin coated proppants in 2014, a 50% increase over 2013. Whereas all primary proppant segments experienced double digit year-over- year growth, frac sand accounted for a majority of the increase.  Strong liquid-targeted drilling and completion activities in North America and aggressive completion designs favoring increased sand intensity per well (both oil and gas) were key contributors.

In addition to historical utilization by proppant type, the report includes summaries on over 100 proppant producers worldwide, including plant locations, proppant types, and capacities. “The report is unique in that a majority of the proppant detail is provided directly by the suppliers, most of which are privately held companies,” commented Brian Olmen, founder of KELRIK, LLC and lead author since 2009. “It provides a granular look into this historically private industry, giving suppliers and consumers an accurate resource to benchmark their position and needs within the supply chain.”

Initiated as a private twenty page report in 2004, this year marks the 10th annual publication. “In 2004, little was known about the proppant industry outside of the pressure-pumping sector. “There were as few as ten providers supplying most of the industry,” explained Ian Renkes, co-author and Manager of Operations and Business Development at PropTester, Inc.

The Proppant Market Report is produced by PropTester, Inc. and KELRIK, LLC. The contributing authors have over 100 years of direct experience in the production, testing, sale and use of all types of proppants. For further information, contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit PropTester.com