Asia-Pacific Proppants Market - Segmented By Material Type and Geography - Growth, Trends and Forecasts (2015-2019)

LONDON, Oct. 29, 2015 /PRNewswire/ -- The Asia Pacific Proppants Market is expected to see healthy rise due to the presence of immense shale gas reserves and hydraulic fracturing projects in China and Australia. Future shale gas extraction projects in India also assures a promising market in this region.

Proppants are sand or other granular substances injected into the fractures to hold or open formation fractures created by hydraulic fracturing. Although proppants have been used in oil and gas production for 70 years, the recent emergence of horizontal drilling technology and multistage hydraulic fracturing along with the advent of shale gas extraction created new opportunities for growth in the early and mid-2000s.

Worldwide demand for proppants has increased more than tenfold since the advent of shale gas. As crude oil prices have spiked and early ventures in horizontal drilling were successful, proppants have provided further momentum to drilling and completion activity.

China has the largest reserves of recoverable shale gas in the world. The country has been conducting horizontal drilling and water fracking successfully. However, they still employ decade-old technology and the success of shale gas and proppants development in China will hinge on better exploration equipment.

In Australia, significant production of shale gas is at least a decade away and will face challenges due to shale gas drilling costs and ability to compete with coal seam gas. Since most of the conventional shale gas reserves in Australia is remotely located, its production may face less environmental opposition than operations in the more populated areas where coal seam gas is currently being developed.

India has relatively low estimated reserves of recoverable shale but the estimates may increase with better mapping. A few wells have already been drilled by the Oil and Natural Gas Corporation, a public sector oil and gas company of the government of India.

Proppants can be categorized into three- Frac Sand, Resin Coated and Ceramic. Frac sand is the most inexpensive and accounts for 80% share of the demand. This demand will continue to account for the largest chunk of the market due to cost advantages.

Improved fracturing techniques have allowed sand to be used in applications previously thought to be beyond its performance range. It performs suitably in most conditions except in wells with high closure pressures. Due to their higher cost, ceramic proppants will be limited to areas requiring high performance products. Their market will grow at a higher rate mainly because of their reliability in extreme conditions.

Resin coated proppants are also expected to grow due to the relative cost advantages over ceramic proppants and performance advantage over frac sand. The market can be segmented based on geography into China, India, Japan, South Korea and other countries. Some of the key players in this market are Superior Silica Sands, U.S. Silica Holdings, Texas Silica and Badger mining.

Drivers:

New drilling techniques that employ proppants and improvements in the fracturing industry are the major drivers in this market.

Restraints:

Major impediments to the growth of this market are environmental norms on the use of the proppants and cost factor.

WHAT THE REPORT OFFERS?

1) Market Definition along with identification of key drivers and restraints for the market.

2) Market analysis for the Asia-Pacific Proppants market with region specific assessments and competition analysis on a global and regional scale.

3) Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.

4) Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares.

5) Identification and analysis of the Macro and Micro factors that affect the Asia-Pacific Proppants market on both global and regional scale.

6) A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
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