CLEVELAND, Aug. 14, 2017 /PRNewswire/ -- Demand for raw frac sand is forecast to increase over 4% per year to nearly 100 billion pounds in 2021. In value terms, raw frac sand is expected to grow 10% per year to over US$3 billion in 2021, reflecting substantial gains in average prices as well as volume growth. These and other trends are presented in Proppants Market in North America, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Healthy growth is forecast for all types of raw frac sand, although both Northern White and Brady sand will see competition from new mines coming online in West Texas. Growth will be driven by robust gains for this other raw sand, which is expected to show increases of 12% per year through 2021. Although other sand has been mined in states like Arizona and Ohio sand mined in West Texas has recently been targeted by major sand suppliers Hi-Crush, Unimin and US Silica. Given its close proximity to the Permian Basin, growth in this new sand source is expected to be strong through the forecast.
While both Canada and the United States will see demand gains through 2021, the US is by far the larger user of the material. According to analyst Dan Debelius, "In 2016, the US accounted for 88% of raw frac sand demand. While unconventional drilling is used in Canada, the oil sands in Alberta -- an area of high activity in the country -- do not require proppants."
More information about the study is available at https://www.freedoniagroup.com/industry-study/proppants-market-in-north-america-by-type-and-location-3rd-edition-3535.htm
About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Energy & Petroleum studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group