Demand for sand to be used by the oil and gas industry in hydraulic fracturing operations in the US is set to grow by 10% in 2019 and 17% in 2020, said a report.
According to Rystad Energy, frac sand supply, on the other hand, is forecast to increase by 10% in 2019 and then decrease by 2% in 2020 as more Northern White Sand will come off the market.
The Eagle Ford Basin in South Texas could play a pivotal role for sand price developments going forward, said Rystad Energy, the independent energy research and consultancy headquartered in Norway with offices across the globe, does not expect in-basin sand prices in the Permian to increase in the forecast period as incremental capacity additions at these mines are not as capital-intensive as at new greenfield mines.
Frac sand demand is forecast to reach 181 million tons in 2024, representing 8% annual growth from 2019 to 2024 (compound annual growth rate, CAGR). The Permian is expected to grow from 55 to 85 million tons in the same time period.
FRAC SAND rystadenergy.com