As proppant intensity continues to climb, PropX CEO Kevin Fisher discusses a “Last Mile” frac sand solution that does far more than just keep up with the unprecedented demand for more dirt.
In the August issue of The American Oil & Gas Reporter, Fisher highlights the importance of having a “Last Mile” Solution that is ready to tackle industry standards in silica dust control while at the same time significantly improving the cost, efficiency, and reliability of the proppant supply chain
U.S. proppant consumption is on track to range between 125 billion and 150 billion pounds this year, exceeding the historic volume pumped in 2014. Not surprisingly, the Permian Basin is the largest consuming region, accounting for more than one-third of total U.S. demand. According to IHS Markit and others who track the hydraulic fracturing market, frac sand demand is forecast to be even stronger in 2018, potentially reaching as much as 200 billion pounds.
This unprecedented level of proppant usage is driven by several factors–increased rig productivities, longer laterals, higher stage counts per lateral, and greater proppant concentrations per stage–but it comes down to the simple fact that developing tight oil and gas shale reservoirs requires a lot of capital, technology, horsepower and consumable goods, proppant included.
There is no question that drilling rigs have become much more efficient, to the point that productivity metrics are being redefined by horizontal pad drilling. In fact, according to the chief executive officer of a major service company, drilling penetration rates are so high that 1,000 rigs now drill about the same amount of footage as 2,000 rigs could drill in 2014. The improved productivity is crucial to the bottom-line economics of resource plays.