PropTester and KELRIK Release 2017 Proppant Market Report; Recovers to Largest Year in History

HOUSTON–(BUSINESS WIRE)–#hydraulicfracturing–PropTester, Inc. and KELRIK LLC are pleased to announce the release of
the 2017 Proppant Market Report. The Proppant Market Report is an annual
review of the global proppant market in relation to prior years.
Proppant demand improved significantly following the two-year decline
experienced in 2015-2016. “The significant rebound is a trend we have
seen previously, whereby industry downturns are followed by intense
demand recovery that often establish new historical highs”, explains
Lead Author, Brian Olmen of KELRIK LLC. “The amount of proppant supplied
grew by 79 percent in 2017 and surpassed 80 million tons (160 billion
pounds), a new historical high.”

The frac sand segment was the primary beneficiary of the upturn as
demand improved 82 percent. The sand industry consists of over 70
producing companies operating 140 production facilities with multiple
new operations under active development. A majority of the new capacity
consists of greenfield projects located in close proximity to active
shale plays including the Permian Basin and Eagle Ford Shale, but sand
capacity expansions are occurring throughout the supply base such as in
Canada and Wisconsin.

In addition to the customary sand, ceramic and resin-coated supplier
summaries on over 120 producers, this year’s report provides a summary
of work being continued by PropTester’s Proppant Transport Research
Council (PTRC) and the relevance that work has in relation to completion
trends involving the use of smaller mesh proppants in unconventional
resource development. Companies throughout the industry (operators,
service companies, proppant and chemical providers) have dedicated
resources to further study proppant behavior inside a fractured
formation. Research is ongoing and will continue with the 2018 PTRC, by
expanding into chemical technologies centered around proppant carrying
capabilities. “With a vast increase in proppant demand, new technologies
are focused on specialty proppants and chemicals”, adds Don Anschutz,
President and CEO of PropTester, Inc. “Our goal is to provide third
party research on new and existing technologies to assist the industry
with a better understanding of how proppant and chemicals are behaving
in today’s oil and gas wells. It’s important to be actively involved in
research and development projects to allow for accurate reporting
purposes and future outlooks in the overall proppant industry.”

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. Proppant Market Report subscribers have access to an
electronic copy of the confidential report, as well as access to the
report on www.proppantmarketreport.com.
For further information, please contact Michelle Stribling or Amanda
Chavey at (888)-756-2112 or visit www.proptester.com.

Contacts

PropTester, Inc.
Michelle Stribling, 713-826-5971
Director of
Sales and Marketing
[email protected]