Proppant Transport Research Council: 2018 Project Overview

In 2017, PropTester established the Proppant Transport Research Council, a group of established leaders within the field of hydraulic fracturing from Operating Companies, Service Companies and Proppant and Chemical Manufacturers. The goal of the Council is to identify one-year projects and conduct research to successfully test proppant transport behavior for various completion methods utilizing PropTester’s facility and the new Proppant Transport Laboratory.

The 2017 project studied how proppant distributes in a complex network at higher rates and lower viscosity utilizing 45 Proppant Transport Tests on 15 different types of proppants in water on a single test design.

As the 2017 project ends, the PropTester team is preparing for the next study. The vision for the 2018 project will focus on how proppants behave at low-shear in single runs for various viscosified fluids and limited proppants using three separate test designs. Research Council members will participate in two data meetings, are invited to observe tests conducted at the PropTester facility and will have access to all test data throughout the year. The scope of work for the 2018 project is outlined below.

2018 Test Designs:

Long Linear Flow
Low velocity to simulate low-shear settling and distribution.

Long Linear Flow with Leak-Off
Moderate-to-low viscosity with ports to simulate leakoff in the fracture system due to matrix or micro-fractures. The setup will include flow-through screens to simulate lateral width screen-out and a closed end to simulate fracture tip screen-out.

Slot Flow: Open System and with Geometrical Variances
Study slot flow performance of various rates for a range of fluids and limited proppants with effects of injection/discharge location, as well as unspecified geometrical inclusions meant to simulate fracture direction variation.

Technical Findings for the Project:

1. Study how proppant moves, settles and banks through an open slot at low-to-zero shear with differing viscous and elastic fluids.
2. Identify proppant transport characteristics through an open channel as fluid leaks off and shear decreases, with dead-end and open ended set up.
3. Determine how changes in geometry (incline, decline, dead-end, drop-off, climb-over) affect proppant placement in slot flow.

Testing will begin in the first quarter of 2018. New candidates for membership on the Proppant Transport Research Council are now being considered. For questions or further information, please contact PropTester.

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

HOUSTON--(BUSINESS WIRE)--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.”

“With a vast increase in proppant demand, new technologies are focused on specialty proppants and chemicals”

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
mstribling@proptester.com

2016 Proppant Market Report – 3rd Largest Volumes In History

February 24, 2017

PropTester, Inc. and KELRIK LLC announce that the release date of the 2016 Proppant Market Report will be March 1, 2017. The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years. The report will also be available at www.proppantmarketreport.com.

Since the inception of the report in 2004, demand values are predominantly based on voluntary disclosures directly from proppant producers.   Whereas proppant demand decreased from the 110 billion pounds (55 million tons) supplied in 2015, 2016 is still the third highest demand value recorded.  Similar to 2015, high intensity completions and product substitution toward lower cost natural proppants favored natural sand producers.

The more active facilities were frac sand producers with production facilities located closer to key active basins and/or those that had favorable mine yields skewed toward finer mesh sands, notably 40/70 and 100 mesh.  Demand for premium proppant (ceramic and resin coat) was significantly reduced for the second year in a row.

Notable for industry is that frac sand capacity continues to grow, and currently exceeds 250 billion pounds (125 million tons) of all grades from 65 frac sand companies.  The report further references 27 pending new sand operations, several of which are actively under construction.

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. All Proppant Market Report subscribers will have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com .

PropTester to Present Technical Paper at 2017 SPE Hydraulic Fracturing Technology Conference

PropTester is pleased to announce the upcoming presentation of its latest technical paper, "Long Term Conductivity vs. Point Specific Conductivity". Authored by Ian Renkes, Don Anschutz, Kimberly Sutter and Allan Rickards, each of PropTester, the paper will be presented at the Society of Petroleum Engineers' Hydraulic Fracturing Technology Conference held in The Woodlands, Texas on January 24-26, 2017. For more information, please contact PropTester.

PropTester, Inc. and KELRIK LLC Announce PMR Release Date, Proppant Market Exceeds 100 Billion LBS in 2015

PropTester, Inc. and KELRIK LLC will release the 2015 Proppant Market Report March 1, 2016. The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years. The report will be available to subscribers at www.proppantmarketreport.com.

Producers of frac sand, ceramic proppants and resin-coated proppants indicate that approximately 110 billion pounds (55 million tons) was supplied in 2015. Despite significantly reduced rig count activity and depressed energy prices, 2015 will be the second largest year in terms of total proppant volumes supplied to industry.

Whereas all proppant types experienced constriction compared to the 135 billion pounds supplied in 2014, frac sand was the least impacted. High proppant intensity completions and product substitution toward lower cost natural proppants benefitted sand producers. Sand alone accounted for over 100 billion pounds of the 2015 market, whereas ceramic proppant and resin-coated proppant volumes both declined significantly to levels not seen since 2010. All proppant types have and continue to feel the impact of excess capacity and pricing weakness. Additional detail regarding idled and postponed capacity has been added to the report.

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. All Proppant Market Report subscribers will have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112.

PropTester, Inc. and KELRIK LLC Announce Proppant Industry Update and the Launch of ProppantMarketReport.com

Houston, TX - PropTester and KELRIK, LLC announced the launch of www.ProppantMarketReport.com, an online version of the annual Proppant Market Report.

The Proppant Market Report is a detailed overview of the global proppant market in relation to prior years and serves as a vital industry report for proppant suppliers, consumers and investors. The online version includes an interactive map and product locator that will be continuously updated for annual subscribers.

After a record breaking 135 billion-pound year in 2014, the sustained drop in energy prices has caused proppant companies, along with other oil and gas service and material companies, to significantly lower prices, reduce employment and cut both operational costs and capital budgets. The proppant industry is not immune to market cyclicality, but unprecedented growth in proppant supply prior to the downturn combined with a significant switch in proppant usage by both type and grade has resulted in substantial operational and logistical challenges throughout the supply chain. The increased number of suppliers and product capacity relative to prior industry downturns has exacerbated price instability to levels not seen since 1985/1986.

In the first half of 2015, performance was slightly better than expected in terms of total sand volumes, trending to nearly 90 percent of the levels seen in the first half of 2014. Ceramic proppant and resin-coated proppant sales have diminished significantly as a result of product substitution toward lower cost, uncoated sand. Although improvements in the third quarter (3Q) of 2015 are expected for sand, optimism for a sustained recovery for all proppant types through 4Q 2015 is now unlikely. Continuation of low energy prices and significantly reduced E&P capital budgets will impede 4Q 2015 performance, particularly in comparison to a robust 4Q 2014 which was largely unaffected by traditional seasonality.

The new website, www.proppantmarketreport.com, offers a digital copy of the existing report for customers, along with access to an interactive map outlining information including location, current capacity and other central information on over 100 current proppant suppliers. “Customers are needing specific proppant quality within a reduced price band in close proximity to the well site or transport corridor. This website is designed to be an evolving tool to better allow our customers to be updated throughout the year on proppant supply options and status,” explained Ian Renkes, co-author and Manager of Operations and Business Development at PropTester, Inc. “In addition to various sand, ceramic and resin-coating plants being idled or delayed, we still continue to see new proppant ventures enter the marketplace.”

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. All customers who purchase the Proppant Market Report have access to the website at no additional cost. For further information, please contact Michelle Stribling or Amanda Chavey at (888)-756-2112 or visit www.proptester.com.

Contact:

PropTester, Inc.
Michelle Stribling
Sales and Marketing Manager
713-352-3718
MStribling@PropTester.com

10th Annual Proppant Market Report Released: Proppant Market Exceeds 135 Billion Pounds

PropTester, Inc. and KELRIK, LLC announced the release of the 2014 Proppant Market Report (PMR) on February 23, 2015. The annual report is a detailed overview of the global proppant market in relation to prior years and serves as a key industry report for proppant suppliers, consumers and investors.

Industry supplied in excess of 135 billion pounds of sand, ceramic, and resin coated proppants in 2014, a 50% increase over 2013. Whereas all primary proppant segments experienced double digit year-over- year growth, frac sand accounted for a majority of the increase.  Strong liquid-targeted drilling and completion activities in North America and aggressive completion designs favoring increased sand intensity per well (both oil and gas) were key contributors.

In addition to historical utilization by proppant type, the report includes summaries on over 100 proppant producers worldwide, including plant locations, proppant types, and capacities. “The report is unique in that a majority of the proppant detail is provided directly by the suppliers, most of which are privately held companies,” commented Brian Olmen, founder of KELRIK, LLC and lead author since 2009. “It provides a granular look into this historically private industry, giving suppliers and consumers an accurate resource to benchmark their position and needs within the supply chain.”

Initiated as a private twenty page report in 2004, this year marks the 10th annual publication. “In 2004, little was known about the proppant industry outside of the pressure-pumping sector. “There were as few as ten providers supplying most of the industry,” explained Ian Renkes, co-author and Manager of Operations and Business Development at PropTester, Inc.

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. For further information, contact Michelle Stribling or Amanda Chavey at (888)-756-2112.