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Current location:HOME>> News>> Industry News>> Current oil winter will not cut the usage of proppant in US
Current oil winter will not cut the usage of proppant in US
AUTHOR:admin PUBLISHED:2016-05-24 CLICK:正在读取

Currently, the main proppant-applied shale area in US includes Eagle ford Williston, Utica. Since the end of 2014, the international oil price is in a continuous drop trend of oil circle. So far, has already decreased more than 60%. In this case, in order to make the cash flow and cut the cost, more than 90% of the US fracking market has been transferred to silica sand instead of ceramic proppant, in which more and more oil service companies seem only care about the IP data. Also the traditional cross-linker fracking fluid has been substituted for slick water fluid, which is only like 60-70% of the previous one.

oil winter

What’s the worse, in order to survive in this oil winter, more and more E & P has chosen to tighten budget and reducing frack projects or postpone the fracking activities after drilling. Consequentially, the proppant application in US market become worse. The depressed oil market has made the proppant competitions much fiercer, more and more suppliers have been reduced to deduct their price in a large degree in order to keep their market share, some are shutting their productions lines or facility, even some are filing the bankruptcy. The sole goal in this slump is to survive. The current proppant application market totally become a buyer’s market now.

However, there is positive signs that the oil price is in a slow recovery as enters the Q2, 2016, and most service companies in US still believe the ceramic proppant outperforms significantly than natural sand, while they have to choose cheaper proppant to cut cost. Most indicates as oil price increase to 50-60 USD/barrel, they will transfer back to ceramic proppant again. So in the long run, the proppant application in US will recover, especially for the ceramic proppant! Just work hard and wait to recover!

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