Market Trends of Stimulation Materials Industry
This section covers the major market trends shaping the Stimulation Materials Market according to our research experts:
Proppants Segment to Dominate the Market Demand
- Proppants or tiny solids, such as frac sand, ceramics, resin coated sand are used to physically hold open tiny rock fractures or cracks and to allow fluids and gas to move around them.
- Proppants play an integral role in the fracking process. They help to open the fractures created in the process of pumping pressurized fluid into the well bore and without them, the closure stress from the weight of the rock above would quickly close the cracks and prevent the extraction of petroleum fluid.
- Among the types of proppants, frac sand holds the dominating share of the market demand. The demand for frac sand is widely driven by the strong demand for hydraulic fracturing application, which is likely to increase noticeably over the forecast period, with rising shale exploration andproduction activities, majorly in North America.
- With the recovery of prices in the oil andgas industry, exploration andproduction have started increasing across the world. The major increase in the oil andgas offshore exploration andproduction activities is noticed in the North Sea, North America, and Middle Eastern regions.
- Thus, with this, the demand for proppants is expected to increase from the oil andgas industry during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
North America Region to Dominate the Market
- North America region dominated the global market share. The increasing shale gas exploration activities in the region has led to robust demand for stimulation materials.
- Non-conventional shale gas exploration has led to the growth of the market in the region, especially in the United States.
- Hydraulic fracturing stands to be one of the major methods of shale gas production, due to which the market for proppants has been growing significantly in the region.
- In November 2018, the United States Geological Survey (USGS) discovered unconventional resources in a part of a Permian oil & gas basin, which straddles Western Texas and South-eastern New Mexico.
- While about one-third of the United States crude production already comes from the Permian Basin, such discovery is further likely to increase exploration and production projects in the coming years.
- During 2018, Mexico discovered 20 offshore oilfields, in water depths ranging from 11 meters to 90 meters. These include Xikin, Kinbe, Cheek, Tlacame, Cahua, Koban, Esah, Manik, Mulach, Octli, Tetl, Pokche, Uchbal, Jaatsul, Teekit, Hok, and Suuk.
- For the offshore fields, 13 offshore platforms are likely to be used, with about 117 wells drilled across all the fields.
- In Canada, Canadian Natural Resources (CNR) is seeking to boost the production of sweet synthetic crude oil from its Horizon Oil Sands project by 265,000 barrels per day in two phases (i.e. Phase 4 and Phase 5), which would boost the total output to 500,000 barrels per day after the upgradation.
- Hence, all such trends in the region are likely to drive the growth of the oil and gas industry, which is further expected to increase the demand for stimulation materials market during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
