Solutions Enhance Efficiency, Reliability Of Proppant ...

August Cover Story

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According to various industry sources, increasing proppant consumption is expected in the U.S. market, indicating growth driven by factors such as heightened rig productivity, extended lateral lengths, and a surge in proppant concentrations per stage. In 2023, proppant usage is projected to reach between 125 billion and 150 billion pounds, with the Permian Basin capturing over a third of total demand. The expectation is that this growth will push subsequent years' demand to possibly exceed 200 billion pounds.

This unprecedented rise in proppant usage results from several factors, namely improved rig efficiency, higher stage counts per lateral, and intensified proppant application per stage, all essential for the development of tight oil and gas shale reservoirs that demand substantial capital, technology, and consumable goods.

Enhancing Infrastructure for Proppant Supply

With drilling rigs becoming increasingly efficient, productivity metrics are redefining under horizontal pad drilling. The CEO of a prominent service company noted that 1,000 rigs now can match the footage drilled by 2,000 rigs in previous years, significantly affecting the economics of resource plays.

Challenges in Frac Sand Logistics

Despite this progress, logistical challenges for frac sand delivery persist. In 2022, various operational limitations emerged from sand mine capacity shortages, logistical traffic on railways, lack of storage facilities, and difficulties in last-mile transport to wellheads. New infrastructure investments during the downturn were notably scarce, raising concerns about synergies in the frac sand supply chain as activity levels recover.

Development of Sand Mines

Sand mines are presently expanding, achieving effective capacities of approximately 80 percent, with new sites emerging, particularly in Texas. The local 'brown sand' offers logistical advantages over 'white sand' sourced from the Midwest, providing cost efficiency while meeting the technical specifications demanded by operators.

Importance of Last Mile Logistics

The fulfillment of demand hinges on the efficiency of last-mile logistics, which constitute about one-third of the total costs associated with proppant delivery. The Permian Basin alone features over 40 significant hauling enterprises, revealing a fragmented transportation market.

Transport Methods and Supply Chain Efficiency

Typically, proppants are transported from source to near basin storage via unit trains consisting of up to 120 railcars, equating to millions of pounds of proppants. Nevertheless, logistical bottlenecks can often arise when unloading from these trains into trucks or storage areas prior to application at well sites. Reports indicate that approximately 200 transload facilities exist in the U.S., with expected capacity growth arising from increased demand.

Future Proppant Delivery Technologies

The traditional pneumatic delivery systems are evolving alongside emerging technologies. Mobile containers enhance speed and reduce environmental impacts, ensuring rapid unloading and minimizing the congestion caused by waiting trucks. Systems utilizing high-capacity conveyors can transfer sand to wellheads more swiftly than traditional methods.

Conclusion and Industry Outlook

As proppant intensity and demand for drilling efficiency continue to escalate, the strife for reliable and cost-efficient supply methods must persist. Existing pneumatic systems will continue to operate, particularly in isolated regions, while on-site storage and modern mobile technology may bridge critical supply gaps. Adaptive strategies and innovative technologies will be essential in optimizing the proppant supply chain moving forward.