From $3,713.3 million in 2019, the low strength proppants market revenue is expected to surge to $5,294.8 million by 2030. According to the estimates of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 9.8% from 2020 to 2030 (forecast period). The market is being propelled by the surging oil and gas exploration and production (E&P) activities and rapid technological advancements and innovations in crude oil recovery.
The players operating in the Asia-Pacific (APAC) and North American regions are making huge investments to improve exploration of new oil and gas reserves. Additionally, power production, especially in the U.S., is predicted to surge massively in the coming years, owing to the development of novel and improved technologies. This is subsequently predicted to propel the use of low-density proppants, which will, in turn, drive the progress of the low strength proppants market.
U.S. oil and gas explorers are increasingly focusing on extracting shale gas in the country. As per the U.S. Energy Information Administration (EIA), in 2019, the shale gas production in the country accounted for 75% of the total natural gas production. Thus, with soaring exploration and production activities in shale gas reserves, the demand for low-strength proppants will surge sharply in the coming years. Across the globe, the North American low strength proppants market is predicted to demonstrate the fastest growth in the coming years.
The addition of this mine would make the company the U.S.’s largest in-basin sand provider, with a combined capacity of more than 19 million tons every year. Likewise, Alpine Silica began the development of two new plants in Fay in Oklahoma and Van Horn in Texas in June 2018, thus adding to its already existing portfolio in the Permian basin. The organization primarily serves frac sand for the oil and gas industry to improve recovery rates. These factors are predicted to push up the demand for low-density proppants in the forthcoming years.
Hence, the sales of low-strength proppants will surge sharply in the coming years, primarily because of the increasing oil and gas exploration and production activities all over the world.