Rock Products

MAY 2015

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62 | Frac Sand Insider May 2015 www.rockproducts.com Domestic Frac Sand percent of natural gas production originat- ed from wells that had been fracked (ALL Consulting, 2012). By 2015, it is anticipat- ed that oil and gas recovered from uncon- ventional deposits will approach 60 percent of total domestic production (IEA, 2012; 2012a). Frac Sand as a Proppant Frac sand, composed of about 95 to 99 percent silica as quartz, has been con- sumed as the major proppant for over 1 mil- lion hydraulically-fractured wells over the last 60 years in the United States (API, 2014). Frac sand has the highest consumption tonnage and total combined value of all natural and manufactured proppants con- sumed in the petroleum industry because of its relatively low unit cost, ready availabili- ty, and overall performance. It is recognized as an essential material for tapping the Na- tion's unconventional oil and gas deposits. The use of the three major types of prop- pants sand, resin-coated sand (RCS), and ceramic alone or in combination, is based primarily on their cost (including shipping) and performance to maximize conductivi- ty (fow-rate). The most important physical and chemical characteristics of a proppant to maintain conductivity are their abilities to withstand; (1) lithostatic pressure; (2), tem- perature; and (3) resistance to solutions. General characteristics of the three ma- jor types of proppants are shown in Fig- ure 4. The specifcations for frac sand are based on the standards determined by the American Petroleum Institute (API) and the International Organization for Standards (Zdunczyk, 2014). Based on statistics published by the U.S. Geological Survey (USGS) for the years 1990 through 2012, a total of ap- proximately 654 million metric tons (Mt) of industrial silica sand valued at 20.3 billion U.S. dollars, adjusted to average 2013 dol- lars (avg. 2013$) free on board (FOB) plant, were sold and used in the United States (U.S. Geological Survey, 1991-2014). Of this amount, about 119 Mt, or 18 percent of that tonnage was used as proppant in hydraulically-fractured gas and oil wells with an estimated total value of about 6.6 billion dollars [avg. 2013$] or about 33 percent of the total industrial sand value (U.S. Geolog- ical Survey, 1991-2014). Figure 5 is a time series chart that shows (1) the metric tons of silica sand proppant sold or used for each of the years during the period 1990 through 2012 (the most recent year for which statistical data is available) as reported by the USGS; (2) an- nual FOB plant values of frac sand termed "sold or used," (because some are inven- tories and stockpiles), for each of the years during the period 1990 through 2012, as reported by the USGS, expressed in aver- age 2013 dollars and; (3) the average num- ber of active horizontal drilling rigs per week per year, as reported by Baker Hughes Inc. per day (MMBOE)] from domestic conventional and unconventional reservoirs from 1980 to projected daily production by 2015. 1 12. 4. Generalized comparison of physical characteristics the three major types of prop- contain the types of proppants presented are illustrative and do not refect the relative proportions of prop- pant consumption or other characteristics of the materials.

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