Report: Sand to remain in high demand as proppant

Demand for proppants, which are key to North America’s expansion of oil and gas production, is expected to increase over the next four years and surpass $9 billion, according to a Cleveland market research firm. Raw sand will continue to account for the majority of proppant demand, the firm adds.

According to The Freedonia Group Inc., which produced a study called “Proppants in North America,” North American proppant demand has risen sharply since 2002, rising from $250 million to nearly $5 billion in 2012. While the firm expects growth to slow from earlier years, it still expects double-digit annual gains and overall demand to reach more than 100 billion pounds in 2017. The demand is expected to be valued at $9.4 billion.

Last year, sand accounted for 90 percent of proppant demand. The Freedonia Group expects sand to account for 91 percent of demand in 2017. Overall, proppant demand is expected to nearly double by 2017.