Ceramic proppant "sneak" U.S. Market

The success of U.S. shale oil and gas development, triggered a global development of shale oil and gas heat, but also for the Chinese manufacturing company to create an excellent business opportunity. Over the past three years, China's  Ceramic proppant  manufactured good support for its ability to gradually replace the conventional proppant - sand, into the U.S. market. So far, the Chinese-made ceramic proppant has occupied the entire North American ceramic proppant market, 13% of the share, the average annual business volume of 30 billion U.S. dollars. Shale oil and gas development is inseparable from the application of hydraulic fracturing, and  hydraulic fracturing  technology is one of the most important materials proppant. Use proppant is aimed at high water pressure to open the oil layer, the supporting stay pressure to open the cracks, so that the gas flow.

In the past, U.S. companies used to make sand proppant. However, due to deep sand pumped under high pressure in the formation after easily crushed, so more and more companies do tend to use ceramic proppant. But for those who are not willing to pay $ 4 / lb ceramic company (sand only 40 America / lb), the more economical option is to use a better performance than conventional silica sand, resin-coated sand child. With North Dakota's rig count is increasing, the demand for sand to increase gradually, the state and even began to Wisconsin and Minnesota looking for sand sources. Since 2009, North American demand for proppant almost tripled, as more and more companies are using multi-stage hydraulic fracturing, ceramic proppant demand grew by 10% to 15%. Ceramic proppant Drilling companies need to have quality: uniform size, chemical stability, high temperature high pressure, combined with good compatibility with sand, flowback easy and so on. The main thing is in deep do not deform under high pressure to extend the productive life of oil and gas wells.

In the North Dakota prairie, Bakken Shale oil development is very hot, from the United States recently shot a satellite night photos can be seen on the North Dakota Bakken core group originally desolate zone, night lights, no less bustling city. The state in October 2011 reached 48.8 million barrels of oil per day, and sometimes a well needed 1,500 tons of sand and other proppants, of which the proportion of ceramic proppant has reached 30%. Well here is often deep 10000 ~ 12,000 feet, it is the best arena ceramic proppant. Over the past two years, the ceramic proppant prices have gone up tremendously, U.S. domestic manufacturers have begun struggling to regain market. But with the Chinese domestic shale gas exploration and development in the rise of China's ceramic proppant seems to have to worry about sales. In addition, the U.S.  shale gas  development in the ascendant, from Ohio to Texas, shale oil and gas well drilling is heating up, the demand for ceramic proppant great on prices also have a certain tolerance.

Ceramic proppant production inputs small, but highly profitable, Chinese proppant manufacturer offers the advantages of cheap local bauxite, bauxite is an important raw material of ceramic production. Chinese proppant manufacturers sell their products directly to the oil services company in China, such as Halliburton, Baker Hughes, Schlumberger or through import and export companies, packing it shipped to the U.S. West Coast some ports, such as Long Beach, California or Seattle, Washington, and then transported by rail in North Dakota and other places. According to North Dakota's largest rail operator BSNF forecast 2012 ceramic proppant volume could double. A few months ago, North Dakota imported from China ceramic proppant ceramic production over the United States 20% cheaper. Recently begun to narrow this difference, along with some middlemen involved, the future of this gap will be further reduced.
Since China began to develop its own shale gas resources, the price advantage of proppant will be further weakened. Recently, the China Petroleum and Shell in Sichuan to develop shale gas project progress, which means that China began commercial exploitation of shale gas. In addition, the emerging economies will also be an increase in production costs pushed the price of high proppant. Over the past two years, China's ceramic proppant higher-level prices rose by 60 percent to $ 800 / ton. China's inflation will exacerbate the current proppant prices. Nevertheless, North America on the huge demand for  ceramic proppant  will all provide enough room for maneuvers. One on the New York Stock Exchange-listed Chinese proppant company said that as long as oil and gas to maintain a certain price, they produce ceramic proppant to sell.

Undoubtedly,  Proppant  industry's prosperity is the U.S.  shale gas  development to the global spread of heat and a signal.