Friday, June 10th, 2016 - RnR Market Research

The analysts forecast global frac sand market to grow at a CAGR of 10.29% during the period 2016-2020. The report covers the present scenario and the growth prospects of the global frac sand market for 2016-2020.

The following companies are the key players in the global frac sand market: Emerge Energy Services, Hi-Crush Partners, Northern Frac Proppants, and US Silica. Other Prominent Vendors in the market are: Chieftain Sand, Di-Corp, Hanson Lake Sands, LaPrairie Group, Sibelco, Source Energy Services, Unimin, Victory Nickel, and Vista Sand.

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According to the frac sand market report a key growth driver is the technological advances being made in the oil extraction processes. The extraction of oil and natural gas from conventional resources in North America and ROW has been experiencing a decline. The majority of conventional oil and natural gas resources are already being accessed. Oil and gas production from unconventional resources such as shale and tight sandstone was not considered to be an economically viable option. Unlike the conventional reserves of oil and natural gas, oil and gas in these tight petroleum reservoirs do not flow naturally through the rock, making them much more difficult to extract. However, the introduction of hydraulic fracturing has changed the oil and gas industry, especially in the US, where shale gas is produced in significant volumes at relatively low costs.

The global frac sand market analyst said a trend which is having a positive impact on the market is consolidation. The frac sand industry is witnessing increased market consolidation. Large operators in the market are acquiring small companies to expand their product portfolio and enhance their capabilities in the market.

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Global Frac Sand Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

The global frac sand market has become an integral part of the oil and gas sector due to the increasing demand for oil and gas extracted from unconventional resources. Some of the key consumers of frac sand are oil and gas companies operating in the shale formations in the US and Canada.

The players on the supply side as well as demand side engage in business by forming contracts. The expiry of some of these contracts in 2015 has created much uncertainty on the demand side. In addition, falling oil prices negatively impacted the demand for frac sand. Consumers operating in shale formations like Eagle Ford and Permian basin have reduced drilling, and as a result, there has been a continuous decline in the number of rigs.

Further, the report states that one challenge that could hamper market growth is a decrease in oil prices and reduced drilling activity.

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