In the United States, as uncertainty around the outlook for oil and gas prices started to dissipate in late 2016, capital investment began to climb...
While 2017 may not be a stellar year for oilfield services in general, the sand proppant those companies use in hydraulic fracturing may enjoy its best time yet.
With crude oil prices appearing stable at more than $50 per barrel, exploration and production (E&P) companies are gaining confidence and spending more money on capital expenditures (CAPEX). Increasingly, analysts and investors are bullish on the grain’s prospects as rig counts climb and E&P companies pour ever more sand downhole to accelerate production.
From sand to ceramics and beyond, specially designed proppants provide economic advantages.
As operations tap tighter formations from sands to shales, improved proppant characteristics and techniques in placement help them reach vast quantities of oil and gas previously beyond the scope of oilpatch technology.
Producers realized early in industry history that the greater the formation surface exposed to the well bore, the greater the production. They started with large numbers of wells and delved briefly into mechanically directed horizontal wells, but fractures that reached far into formations surpassed economic production potential of both systems. READ MORE