Extreme demand for sand in Permian for fracing
Fuel Fix:
The booming Permian Basin is driving huge demand for sand used in hydraulic fracturing, with no end in sight, according to a report released Wedensday by IHS Markit.It has become a leading indicator of drilling activity in the Permian Basin. Before the West Texas sand was used the drillers imported it from Wisconsin.
The market value for frac sand exceeds $4 billion in 2018 and will reach nearly $6 billion by 2023. It was $1.3 billion in 2016, the report said.
"Sand proppant demand is at record highs - the growth rate is extreme by any measure," said Brandon Savisky, senior market research analyst at IHS Markit.
Sand is called proppant in fracking because it the grains prop open cracks in shale rock to allow oil and gas to escape.
The Permian accounts for nearly 40 percent of the market demand, but by 2023 will account for almost 50 percent, Savisky said.
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