Rock Products

NOV 2014

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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ROCK products • NOVEMBER 2014 4 Rock Products, Volume 117 Issue 11, (ISSN 0035‐7464) is published month‐ ly by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining‐ Periodicals Postage paid at Englewood, CO, and addi‐ tional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining‐ Current and back issues and additional resources, including subscription request forms and an editorial calendar, are available at SUBSCRIPTION RATES: Free and controlled circulation to qualified sub‐ scribers. Non‐qualified persons may subscribe at the following rates: USA and Canada, 1 year, $82.00; 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00; 2 year, $249.00 surface mail (1 year, $191.00; 2 year, $352.00 airmail delivery). For subscriber services or to order single copies, write to Rock Products, 8751 East Hampden Avenue, Suite B1, Denver, CO 80231 USA; call +1 303‐283‐0640 (USA) or visit www.mining‐ SUBSCRIPTIONS: To update or cancel a subscription, email circula‐ tion@mining‐ ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of selected archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800‐521‐0600 or +1 734‐761‐ 4700, or search the Serials in Microform listings at POSTMASTER: Send address changes to Rock Products, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden Avenue, Suite B1, Denver, CO 80231 USA. Phone: +1 303‐283‐0640, Fax: +1 303‐283‐0641, www.mining‐ PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1 978‐750‐8400. Obtain further information at copy‐ EXECUTIVE OFFICE: Mining Media, Inc., 8751 East Hampden Avenue, Suite B1, Denver, CO 80231 USA Phone: +1 303‐283‐0640, Fax: +1 303‐283‐0641, www.mining‐ COPYRIGHT 2014: Rock Products ALL RIGHTS RESERVED. Editorial Office 11555 Central Parkway, Suite 401 Jacksonville, Florida 32224 U.S.A. Phone: +1.904.721.2925 • Fax: +1.904.721.2930 Mining Media International Corporate Office 8751 East Hampden Avenue, Suite B1 Denver, Colorado 80231 U.S.A. Phone: +1.303.283.0640 • Fax: +1.303.283.0641 Editor, Mark S. Kuhar, mkuhar@mining‐ Associate Editor, Josephine Smith, jsmith@mining‐ Graphic Designer, Austin St. Clair, astclair@mining‐ Vice President/Editorial Director, Steve Fiscor, sfiscor@mining‐ President/Publisher, Peter Johnson, pjohnson@mining‐ Vice President/Sales & Marketing, John Bold, jbold@mining‐ U.S. & Canada, Sales, Sean Carr, scarr@mining‐ Kyle Nichol, knichol@mining‐ Scandinavia, UK and European Sales Manager, Colm Barry, German Sales Manager, Gerd Strasmann, StrasmannMedia@t‐ Classified Adver tising: Christin Doran, (317) 802‐7118, cdoran@mining‐ New Business Manager: Norm Rose, (770) 664‐0608, nrose@mining‐ Show Manager, Tanna Holzer, tholzer@mining‐ Production Manager, Dan Fitts, dfitts@mining‐ here is sand, sand and more sand in our future. According to the study "ProppantIQ" by PacWest Consulting Partners, the U.S. proppant market is expected to grow at 8 percent per annum through 2015, from 63 billion lb. in 2013 to 75 billion lb. in 2015. The frac sand portion of the market specifically will drive the majority of growth, which is expected to increase at 9 percent per annum, from 56 billion lb. in 2013 to 67 billion lb. in 2015 Driving growth in the market, in addition to an increase in wells, is the amount of sand being used per well. In a new note, researchers Ole Slorer, Benjamin Swomley and Connor Lynagh of Morgan Stanley write that exploration and production companies have discovered that if they use more sand at unconventional shale plays, they are able to increase the amount of reserves they can extract from the ground. MS forecasts sand demand growth of 96 percent in 2016 from 2013, compared with just 76 percent of sand capacity growth. "We believe the industry is beginning to form a consensus regarding the superior economics of high sand usage, and believe we will see contin‐ ued movement towards these operators' consumptions levels," MS said. They also noted that sand prices could increase as much as 50 percent. Demand for well‐stimulation materials in the United States is forecast to climb more than 10 percent annually to $15.2 billion in 2018, according to Well Stimulation Materials, a new study from The Freedonia Group Inc., a Cleveland‐based market research firm. According to analyst Lee Steinbock, "Historically high oil prices and rebounding natural gas prices are expected to be the main factors promot‐ ing continuing growth in well completion activity. The use of newer tech‐ nologies such as horizontal drilling and high‐volume, multistage hydraulic fracturing will increase the amount of materials used per well." Although raw sand dominates the market in terms of volume sales, value‐ added coated sand and ceramic proppants each account for a greater share of dollar demand. Resin‐coated sand proppants are expected to register the fastest growth as proppant loads continue to expand and operators devel‐ op formations with higher closure pressures. This is all positive news for producers of frac sand. While market restraints such as adequate storage, over‐burdened rail transport issues and the distance from deposit to well are all in play, the market appears to be poised for active success in the coming years. Mark S. Kuhar, editor mkuhar@mining‐ (330) 722‐4081 Member: Construction Writers Association Frac Sand Market Ready to Explode T

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