The Proppants Market 2013-2023


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The Proppants Market 2013-2023

  1. 1. ©noticeThis material is copyright 2010 by visiongain. It is against the law to reproduce any of this material without the prior written agreement ofvisiongain. You cannot photocopy, fax, download to database or duplicate in any other way any of the material contained in this report. Eachpurchase and single copy is for personal use only.Proppants Market2013-2023
  2. 2. www.visiongain.comContents1. Executive Summary1.1 The Global Proppants Market Overview1.2 Benefits of This Report1.3 Who is This Report For?1.4 Methodology1.5 Global Proppants Market Forecast 2013-20231.6 Proppants Submarket Forecasts 2013-20231.7 Leading National Proppants Market Forecasts 2013-20232. Introduction to the Proppants Market2.1 Proppants Market Definition2.2 Proppants Market Structure2.3 Proppants Demand Structure2.4 Types of Proppant2.4.1 Frac Sand2.4.2 Resin Coated Proppant2.4.3 Ceramic Proppant2.5 Proppant Supply Chain2.6 Proppant Use in the Oil and Gas Industry - Hydraulic Fracturing2.7 Recent History of Proppants Industry2.8 Types of Unconventional Development3. Global Proppants Market Forecast 2013-20233.1 Drivers & Restraints on the Global Proppants Market4. Proppants Submarket Forecasts 2013-20234.1 The Ceramic Proppants Market Forecast 2013-20234.1.1 Ceramic Proppants Overview4.1.2 Ceramic Proppant Market Dynamics4.1.3 Drivers and Restraints on the Ceramic Proppants Market4.2 The Resin Coated Sand Proppants Market Forecast 2013-20234.2.1 Drivers and Restraints on the Resin Coated Sand Market4.2.2 Key Players in Resin Coated Sand Manufacture4.3 The Frac Sand Market Forecast 2013-20234.3.1 Drivers and Restraints on the Frac Sand Market5. Leading National Proppants Markets 2013-20235.1 Leading National Proppants Markets Forecasts 2013-20235.2 Leading National Proppants Markets Share Forecast 2013-20235.3 Barriers to Entry Analysis for National Proppants Markets
  3. 3. www.visiongain.comContents5.4 The US Proppants Market Forecast 2013-20235.4.1 Demand Side Dynamics of US Proppants Market5.4.1.1 Proppant Demand Drivers5.4.1.2 Proppant Demand Restraints5.4.2 Californian Unconventional Oil and Gas Development and Proppant Demand5.4.3 Proppant Demand Side Analysis by Unconventional Development Type5.4.3.1 Shale Oil/Tight Oil5.4.3.2 Tight Gas5.4.3.3 Shale Gas (Dry) Coalbed Methane5.4.4 Supply Side Dynamics of US Proppant Market5.4.4.1 Supply Driver (Available Proppant and Affect on Price/Sales) Supply Restraints5.4.5 Overall US Proppant Market Drivers & Restraints5.5 The Russian Proppants Market Forecast 2013-20235.5.1 Russian Proppants Market Overview5.5.2 Strong Growth Dynamics5.5.3 Drivers & Restraints on the Russian Proppants Market5.5.4 Shale Gas and Proppants in Russia5.6 The Chinese Proppants Market Forecast 2013-20235.6.1 Chinese Unconventional Resources5.6.2 Drivers & Restraints on Hydraulic Fracturing and Proppant Sales in China5.6.2.1 Drivers5.6.2.2 Restraints5.6.3 Summary of Chinese Proppant Market Dynamics5.7 The Canadian Proppants Market Forecast 2013-20235.7.1 Drivers & Restraints on the Canadian Proppant Market5.8 The Australian Proppants Market Forecast 2013-20235.8.1 Proppant Demand Drivers5.8.1.1 Bauxite Availability5.8.1.2 Shale Gas Development Drivers and Proppant Sales Impact5.8.2 Shale Gas Development Restraints and Proppant Sales Impact5.8.3 Tight Gas Development and Proppant Sales Impact5.8.4 Shale/Tight Oil Prospects and Proppant Sales Impact5.8.5 Coalbed Methane Development and Proppant Sales Impact5.8.6 Summary of Australian Proppants Market Drivers & Restraints5.9 Rest of the World (RoW) Proppants Market Forecast 2013-20235.9.1 Argentinean Proppant Market Prospects5.9.2 Indian Proppant Market Prospects5.9.3 Mexican Proppant Market Prospects5.9.4 Omani Proppant Market Prospects5.9.5 Polish Proppant Market Prospects5.9.6 UK Proppant Market Prospects6. PEST Analysis of the Proppants Market 2013-2023
  4. 4. www.visiongain.comContents7. Expert Opinion7.1 Baltic Ceramics7.1.1 Baltic Ceramics Overview7.1.2 The Importance of Reducing Transportation Distance7.1.3 Demand Markets for Baltic Ceramics Product7.1.4 Competitors and Imported Proppant7.1.5 Proppant Consumption Habits in Europe7.1.6 Ceramic Proppant Benefits7.1.7 Russian Price Threat7.1.8 Resin Coated Sand Competition7.1.9 Limited Hydraulic Horsepower7.2 Victory Silica7.2.1 Victory Silica Background7.2.2 Victory Silica Strategy7.2.3 Victory Silica Competitors7.2.4 Short Notice Proppant Demand7.2.5 Proppant per Stage7.2.6 Contractual Allocations of Proppant7.2.7 Shift Toward Liquid-Rich Plays7.2.8 Ceramic Proppant Market Share7.2.9 Logistical Considerations7.2.10 LNG Exports8. Leading Suppliers in the Proppants Market8.1 Leading Publicly Listed Proppant Suppliers8.1.1 Carbo Ceramics Overview8.1.1.1 Analysis8.1.1.2 Comparative Competitor Analysis8.1.1.3 Regional Focus8.1.1.4 Future Outlook8.1.2 Saint-Gobain Overview8.1.2.1 Analysis8.1.2.2 Competitors8.1.2.3 Regional Focus8.1.2.4 Future Outlook8.1.3 US Silica Overview8.1.3.1 Analysis8.1.3.2 Competitors8.1.3.3 Regional Emphasis8.1.3.4 Future Outlook8.1.4 Hi Crush Partners Overview8.1.4.1 Analysis8.1.4.2 Competitors8.1.4.3 Regional Focus
  5. 5. www.visiongain.comContents8.1.4.4 Future Outlook8.2 Other Leading Proppant Suppliers8.2.1 BorProp (JSC "Borovichi Refractories Plant") Overview8.2.1.1 Analysis8.2.2 Fores LLC Overview8.2.2.1 Analysis8.2.3 Imerys Overview8.2.4 FTS International Overview8.2.5 Mineração Curimbaba Overview8.2.5.1 Analysis8.2.5.2 Regional Focus8.2.6 Momentive Overview8.2.7 Santrol Overview8.2.8 Unimin Corporation8.3 Other Proppant Suppliers in the Market9. Conclusions9.1 Global Proppants Market Outlook9.2 Proppants Market Drivers & Restraints9.3 Proppants Submarket Forecasts 2013-20239.4 Leading National Proppants Market Forecasts 2013-202310. Glossary
  6. 6. www.visiongain.comContentsList of TablesTable 1.1 Proppants Submarket Forecast Summary 2013, 2018, 2023 ($m, CAGR %)Table 1.2 Leading National Proppants Market Forecast Summary 2013, 2018, 2023 ($m, CAGR %)Table 3.1 Global Market Forecast 2013-2023 ($m, AGR %, CAGR%, Cumulative)Table 3.2 Global Proppants Market Drivers and RestraintsTable 4.1 Proppant Submarket Forecasts 2013-2023 ($m, AGR %)Table 4.2 Ceramic Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 4.3 Resin Coated Sand Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 4.4 Frac Sand Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.1 Leading National Proppants Markets Forecast 2013-2023 ($m, AGR %)Table 5.2 US Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.3 US Proppants Market Drivers & RestraintsTable 5.4 Russian Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.5 Russian Proppants Market Drivers & RestraintsTable 5.6 Chinese Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.7 Chinese Proppants Market Drivers & RestraintsTable 5.8 Canadian Proppants Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.9 Canadian Proppants Market Drivers & RestraintsTable 5.10 Canadian LNG Export Terminals (Name, Owner(s), Export Capacity, Cost, Status)Table 5.11 Australian Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 5.12 Non-CBM Fed Australian LNG Export Terminals Under Construction (Location, Operator/Owner,Capacity, Construction Cost, Construction Period)Table 5.13 CBM Fed LNG Export Projects (Location, Owner/Operator, Capacity, Construction Cost, Status)Table 5.14 Australian Proppants Market Drivers & RestraintsTable 5.15 RoW Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %, Cumulative)Table 6.1 PEST Analysis of the Proppants Market 2013-2023Table 8.1 Leading Publicly Listed Proppants Suppliers 2013 (Total Revenue, % Revenue in Sector)Table 8.2 Carbo Ceramics Overview 2012 (Total Company Revenue, Revenue from Market %, HQ, Ticker, IRContact, Website)Table 8.3 Carbo Ceramics Proppants (Product, Further Details)Table 8.4 Saint-Gobain Overview 2012 (Total Company Revenue, Revenue from Market % Revenue from Market,HQ, Ticker, Proppants Division Contact, Website)Table 8.5 Saint-Gobain Proppants (Product, Further Details)Table 8.6 US Silica Overview 2012 (Total Revenue, Revenue from Market, % Revenue From Market, HQ, Ticker, IRContact, Website)Table 8.7 US Silica Proppants (Product, Further Details)Table 8.8 Hi Crush Partners Overview 2012 (Total Revenue, Revenue from Market, % Revenue From Market, HQ,Ticker, IR Contact, Website)Table 8.9 BorProp Proppants (Product, Details)Table 8.10 Fores LLC Proppants (Product, Details)Table 8.11 Mineração Curimbaba Proppants (Product, Details)Table 8.12 Momentive Proppants (Product, Specification)Table 8.13 Other Proppants Suppliers in the Market 2013 (Company, Primary Location, Proppant(s)Offered/Information)Table 9.1 Global Proppants Market Drivers & RestraintsTable 9.2 Proppants Submarket Forecasts Summary 2013, 2018, 2023 ($m), 2013-2023 CAGR (%)
  7. 7. www.visiongain.comContentsTable 9.3 Leading National Proppants Market Forecasts Summary 2013, 2018, 2023 ($m), 2013-2023 CAGR (%)List of FiguresFigure 2.1 Global Proppants Market StructureFigure 2.2 Global Proppants Demand StructureFigure 2.3 Types of ProppantFigure 2.4 Hydraulic Fracturing Fluid Composition (%)Figure 2.5 Conventional & Unconventional Hydrocarbon Resources Cross-SectionFigure 3.1 Global Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 3.2 WTI ($/bbl) versus Henry Hub (HH) ($/MMBtu), 2001-2012Figure 4.1 Proppants Submarket Sales Forecasts 2013-2023 ($m) - StackedFigure 4.2 Proppants Submarket Sales Forecasts 2013-2023 ($m) - IndividualisedFigure 4.3 Proppants Submarkets Share Forecast (by sales $m) 2013 (%)Figure 4.4 Proppants Submarkets Share Forecast (by sales $m) 2018 (%)Figure 4.5 Proppants Submarkets Share Forecast (by sales $m) 2023 (%)Figure 4.6 Submarkets Market Share Change (by sales value, $m), 2013-2023Figure 4.7 Proppants Submarket CAGR%, 2013-2018, 2018-2023, 2013-2023Figure 4.8 Ceramic Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 4.9 Ceramic Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 4.10 Bauxite Production, 2010-2011 (Thousand Metric Dry Tons)Figure 4.11 Bauxite Reserves (Thousand Metric Dry Tons)Figure 4.12 Resin Coated Sand Market Forecast 2013-2023 ($m, AGR %)Figure 4.13 Resin Coated Sand Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 4.14 Frac Sand Market Forecast 2013-2023 ($m, AGR %)Figure 4.15 Frac Sand Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.1 Leading National Proppants Markets Forecast 2013-2023 ($m)Figure 5.2 Leading National Proppants Market Share Forecast 2013 (%)Figure 5.3 Leading National Proppants Market Share Forecast 2018 (%)Figure 5.4 Leading National Proppants Market Share Forecast 2023 (%)Figure 5.5 Barriers to Entry vs. 2013 National Market Size vs. CAGR (%) 2013-2023Figure 5.6 US Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.7 US Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.8 Break-even Prices for Top North American Shale Plays & 2012 Average HH gas price ($/MMBtu)Figure 5.9 Eagle Ford Shale Producing Wells (BOE/day; Gas-Oil Ratio); Eagle Ford Petroleum Window (Oil, WetGas/Condensate, Dry Gas); Eagle Ford Shale Production (BOE/day)Figure 5.10 North American Shale PlaysFigure 5.11 North American LNG Import and Export Terminals (as of April 2013)Figure 5.12 Map of LNG Import and Export Terminals in North America (as of April 2013)Figure 5.13 US Natural Gas Consumption and Projection, 1995-2040 (quadrillion Btu)Figure 5.14 North Dakota Natural Gas Production, 2000-2011 (mmcf/d)Figure 5.15 US Tight Oil Production, 2000-2012, (mmbbl/d)Figure 5.16 US Crude Oil Production, 1983-2013 (mmbbl/d)Figure 5.17 Shale Well Productivity: Haynesville, Eagle Ford, Woodford, Marcellus, Fayetteville (mmcf/y, years)Figure 5.18 Major Tight Gas Plays, Lower 48 StatesFigure 5.19 Natural Gas Production, 1990-2035: Shale Gas, Tight Gas, Lower 48 Onshore Conventional, Lower 48Offshore, Coalbed Methane, Alaska (tcf)
  8. 8. www.visiongain.comContentsFigure 5.20 US Rotary Rig Count, 2007-2013 (Oil, Gas, Gas %)Figure 5.21 US CBM Production, 1989-2010 (bcf)Figure 5.22 US CBM Fields in the Lower 48 StatesFigure 5.23 CBM Wells Drilled in the US vs. Henry Hub Spot Price and WTI Spot Price, 2004-2011 (number of wellsdrilled, $/boe)Figure 5.24 Russian Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.25 Russian Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.26 Russian Total Oil Production, 2002-2012 (Thousand bpd)Figure 5.27 Brent Crude vs. WTI Price, 2002-2013 ($/bbl)Figure 5.28 Chinese Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.29 Chinese Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.30 Canadian Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.31 Canadian Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.32 Oil and Gas Drilling Rigs in Canada, 2007-2013 (Number of Rigs)Figure 5.33 Australian Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.34 Australian Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 5.35 Australian Coal Seam Gas (Coalbed Methane) and Natural Gas Pipeline MapFigure 5.36 Australian CBM Production, Surat & Bowen Basins (bcm), 1997-2012Figure 5.37 Top 10 LNG Importers Worldwide (bcm)Figure 5.38 RoW Proppants Market Forecast 2013-2023 ($m, AGR %)Figure 5.39 RoW Proppants Market Share Forecast 2013, 2018 and 2023 (% Share)Figure 8.1 Leading Proppants Suppliers Categorised by Proppant OfferingFigure 8.2 Leading Publicly Listed Proppant Suppliers, Total Revenue ($m) and Revenue in Sector (%)Figure 9.1 Proppants Submarket CAGR Forecasts, 2013-2018, 2018-2023, 2013-2023 (CAGR %)Figure 9.2 Proppants Submarket Sales Forecasts, 2012-2023 ($m)Figure 9.3 Leading National Proppants Market Sales Forecasts, 2012-2023 ($m)Figure 9.4 Leading National Proppants Market CAGR%, 2013-2018, 2018-2023, 2013-2023 (CAGR %)
  9. 9. www.visiongain.comContentsCompanies Mentioned in This ReportAGL EnergyAlma InternationalAnadarkoApacheArrow EnergyAtlas Resin Proppant (owned by Badger Mining Corporation)AWEBaltic CeramicsBaker HughesBeach EnergyBC LNG Export Cooperative LLCBG GroupBlack CatBorPropBNSFBPBP AmericaBrownwood ClayCadre ProppantsCanadian Sand & ProppantsCanfrac SandsCarbo CeramicsCambridge Energy FLNG (CE FLNG)CNOOC – China National Offshore Oil CompanyCNPC – China National Petroleum CompanyChesapeake EnergyChevronCheniereChevron CanadaChubu Electric GroupCoated Sand SolutionsConocoPhillipsContinental ResourcesCuadrilla ResourcesDart Energy
  10. 10. www.visiongain.comContentsDevon EnergyDominion ResourcesDow CorningDowneast LNGDrillsearchEOG ResourcesEmpire Oil and GasErna Frac SandExcelerate EnergyExxonMobilFairmount MineralsFalcon Oil & GasFlexfracFores LLCFractstarFreeport LNGFTS InternationalGasfin DevelopmentGazpromGazprom NeftGoose Landing Sand CompanyGreat Plains SandGulf Coast LNG ExportGulf LNG LiquefactionHaislaHalliburtonHenan Provincial Coal Seam Gas Development and Utilization Co.Hess CorporationHi Crush PartnersHilcorp ResourcesHusky EnergyImerysInpex Browse Ltd.Interstate Energy PartnersJapexJordan Cove Energy Project
  11. 11. www.visiongain.comContentsKansai ElectricKestrel EnergyKinder MorganKM ProppantsKoch MineralsKOGASKuwait Foreign PetroleumLiberty Natural GasLNG CanadaLNG LimitedLNG Partners LLCLukoilMagnolia LNGMagnum HunterMaide CeramicsMarathon Oil CorporationMcCormack EnergyMetgascoMGM Energy CorporationMineração CurimbabaMississippi Sand LLCMitchell EnergyMitsubishi CorporationMomentiveMurphy OilNew Century Proppant TechnologyNew Standard EnergyNorwest EnergyOccidental PetroleumOregon LNGOrigin EnergyOsaka GasOxanePangea LNGPenn VirginiaPetroleos Mexicanos (Pemex)
  12. 12. www.visiongain.comContentsPetroChinaPetrofrontierPetronasPieridae Energy Canada Ltd.Pioneer Natural ResourcesPreferred SandsPremier SilicaProgress EnergyPyramaxQueensland Gas Company Ltd.Range ResourcesRainbow CeramicsRaystoneRepsolRosneftSaint-GobainSantosSantrol/Fairmount MineralsSasolSchlumbergerSenecioSenex EnergySempraShellShell CanadaSibelco GroupSierra Frac SandSino Gas and EnergySinopecSintex Minerals and ServicesSmart SandSouthern LNG CompanySouthern Ohio Sand Proppant Co., LtdSouthern UnionSouthwestern EnergySpectra Energy
  13. 13. www.visiongain.comContentsStatoilStrike EnergySuperior Silica SandsTNK-BPTokyo GasToho GasTotalTotal E&P AustraliaTrunkline LNGUnimin CorporationUnion PacificUralchimplast (NordProp)US SilicaVictory Nickel/Victory SilicaWanliWardrup EngineeringWeatherford InternationalWhibco Inc.Whiting Petroleum Corp.Wildcat MineralsWoodsideYixing Orient Petroleum Proppant Co. LtdYPFGovernment Agencies and Other Organisation Mentioned in This ReportAlberta Energy Resources Conservation BoardAlberta Geological SurveyAmerican Petroleum Institute (API)Australian Department of Resources, Energy & TourismGovernment of New South Wales, AustraliaDirectorate General of Hydrocarbons (India)Ministry of Land and Resources (China)Ministry of Water Resources (China)National Energy Administration of China (NEA)National Development and Reform Commission of China (NDRC)Queensland Government, Australia
  14. 14. www.visiongain.comContentsSPE (Society of Petroleum Engineers)US Coast Guard (USCG)US Department of Energy (DoE)US Energy Information Administration (EIA)US Federal Energy Regulation Commission (FERC)US Maritime Administration (MARAD)United States Geological Survey (USGS)
  15. 15. Page 90www.visiongain.comThe Proppants Market 2013-2023Tax BreaksThe upstream tax on oil development in Russia above $25/barrel is currently 90%. This needs tocome down if progress in tight oil is to continue; the resource has been reported as uneconomicalto produce on a large-scale under the existing tax regime. The political will of Putin to retainproduction above 10 million barrels per day will also lead to tax breaks on extraction – notoriouslyhigh in Russia compared to other parts of the world. The oil export tax has already been reducedfrom 66% to 60%. This will further assist the rapid expansion of horizontal drilling in Bazhenov andBrownfield EOR.Specific subsidies for tight oil will be implemented by the end of 2013: tax breaks and a stimuluspackage were announced (October 2012) to encourage further foreign investment in the tight oildeposits of Western Siberia. These will reduce the tax bill for developers of these areas by at least20% overall.In mid-2012, ExxonMobil Corporation announced its intention to develop these tight oil reserves inWestern Siberia via a joint venture (JV) with Rosneft. With a 33.3% stake, ExxonMobil is aiming toreplicate the success in developing unconventional resources that has already occurred acrossNorth America. The first major wave of development drilling is due in 2013, contributing to the jumpin proppants demand.In May 2012, Statoil also signed agreements with Rosneft to explore the development potential oftight oil in Southern Russia and Western Siberia. This trend of JVs for the development ofunconventional resources will grow proppants sales over the next five years as long-term contractsfor proppant supply are signed.Equipment and ExpertiseThe main limitation on the proppants market in Russia is the need for more crews and equipmentcapable of multi-stage hydraulic fracturing of a horizontal well. The agreement between Rosneftand ExxonMobil highlights the acknowledgement of Rosneft that it requires American expertise tomatch its horizontal drilling and tight oil development ambitions. The establishment of a proppantsfactory in Russia by Carbo Ceramics is also indicative of a market for American expertise to servicethe rapidly expanding amounts of hydraulic fracturing occurring in Russia.Top-Down Decision MakingThe need to utilise horizontal drilling expertise in Russia has and will continue to challenge manyinterest groups within the decision making structure of the domestic oil and gas industry. However,
  16. 16. Page 113www.visiongain.comThe Proppants Market 2013-20235.8 The Australian Proppants Market Forecast 2013-2023Table 5.11 and Figures 5.33 and 5.34 show the amount that visiongain predicts will be spent onproppants in Australia over the next 10 years.2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-23Sales ($m) 36.0 51.2 50.4 62.6 78.5 83.1 94.0 110.6 138.7 165.1 193.2 229.4 1,256.8AGR 42.2 -1.7 24.3 25.3 5.9 13.1 17.7 25.4 19.0 17.0 18.82018-23 19.516.212.9CAGR (%) 2013-18CAGR (%) 2013-23-5%0%5%10%15%20%25%30%35%40%45%0501001502002502012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023AGR$mYearSource: Visiongain 2013Table 5.11 Australian Proppants Market Forecast 2013-2023 ($m, AGR %, CAGR %,Cumulative)Source: Visiongain 2013Figure 5.33 Australian Proppants Market Forecast 2013-2023 ($m, AGR %)
  17. 17. Page 141www.visiongain.comThe Proppants Market 2013-20237.2 Victory SilicaKen Murdock is the CEO of Victory Silica. Appointed in June 2012, Mr. Murdock is leading thisrecently created subsidiary of Victory Nickel into the frac sand business. A veteran of the frac sandindustry, he has over 25 years experience in the industrial minerals industries. This expertise wasgained in senior positions at companies including Lafarge NA, United Industrial Services Ltd andCanfrac Sands Ltd. Holder of an M.Eng in Environmental Engineering from McGill University and aB.Sc in Civil Engineering from the University of Manitoba, Mr. Murdock has also managed his ownfirm, I.M&M. Consulting, which assisted third parties evaluate sand deposits and construct sandplants.Sean Stokes is Corporate Secretary and Vice President, Public Affairs, at Victory Nickel. He hasover 20 years of experience in finance, business development and corporate communications. Hisexpertise in the mineral/mining sector is especially notable, having worked for the likes of LibertyMinerals, Scandinavian Minerals and Orvana Minerals.Visiongain interviewed Mr. Murdock and Mr. Stokes in April 2013 and would like to thank them fortheir astute and insightful remarks.Victory Silica is a wholly owned subsidiary of Victory Nickel, created in 2012. It is listed on theToronto Stock Exchange under the symbol ‘NI’ (TSX:NI). It aims to begin its first production of fracsand in August 2013.7.2.1 Victory Silica BackgroundVisiongain: What is the background to the establishment of Victory Silica?Sean Stokes: Victory Silica is a wholly owned subsidiary of Victory Nickel, which is listed on theToronto Stock Exchange under the symbol NI. At Victory Nickel we are currently looking at ways tofinance the Minago Nickel mine, which is one of the largest sulphide nickel deposits in Canada.Unlike the metals market, companies are not willing to pay forward for frac sand. Our difficultyarises, therefore, from trying to finance development of the Minago nickel mine and the associatedremoval and sale of the frac sand, which is a valuable resource in itself. Minago has a full feasibilitystudy completed and is permitted for mining. We are at the point where all we need is the financingto be able to proceed. Ken was hired by Wardrop Engineering to perform the independentassessment of the frac sand resource at Minago as part of the overall Minago Nickel minefeasibility. Our issue is accessing capital, which is very difficult for all the junior mineral explorationplays and at the moment specifically challenging for nickel. Frac sand, however, is an interesting
  18. 18. Page 148www.visiongain.comThe Proppants Market 2013-20238. Leading Suppliers in the Proppants MarketFigure 8.1 shows the leading proppant suppliers categorised by proppant offering. The leadingpublicly listed proppant suppliers are highlighted in red. The analysis and discussion of thesesuppliers is the most in depth, with visiongain providing a detailed future outlook for each company.A wide variety of companies are involved in the proppants market: from pure-play frac sand orceramic proppant producers, to coatings companies, to materials companies and oil and gasservice providers. EOG Resources, an owner/operator of unconventional plays across the US, isalso now expanding into the proppant business by starting its own frac sand mining and processingfacility.Pure-Play Companies: Being a pure-play frac sand provider is customarily the domain of small-scale independent sand mining companies. It is natural, once this businessdevelops for the company to diversify into other proppant offerings, as well asadding to its transportation, processing and transloading assets. For a frac sandproducer this will mean the addition of a resin coated sand range (i.e. Santrol).Figure 8.1 Leading Proppants Suppliers Categorised by Proppant OfferingResin Coated ProppantOnly•MomentiveCeramic Proppant Only•Mineração Curimbaba•Saint-Gobain•ImerysFrac Sand and ResinCoated Proppant• Santrol• Unimin Corporation• FTS International• US SilicaCeramic Proppant andResin Coated Sand• Carbo Ceramics• Borprop• Fores LLCFrac Sand Only• Hi Crush PartnersSource: Visiongain 2013