subject: The Russian Proppants Market - April 2012 (russian Market Report) [print this page] Proppants (propping agents) are granulated aluminosilicate powders, designed to intensify the oil production process of hydraulic fracturing. The proppants are gray sands at the size of a big poppy seed. Each granule is a simple ceramic item, obtained through high temperature firing by special fractionated aluminum oxide. In this case, the granules acquire high mechanical strength: one square centimeter of sand can keep without failure up to 8 tons of weight load.
The proppant powder, pumped under pressure thrusts itself into the oil or gas layers. At depth, extending these layers from one another, the proppants keep them as jacks, ensuring no residue pumping oil and gas from the aging wells.
Proppants (proppants) are of great importance in the production of oil, which is, of course, especially important for Russia. During the recent economic crisis, the proppants market sank significantly and is only now at a stage of recovery. The proppants market consists of both Russian and foreign players. Among the largest domestic companies are JSC " Borovichskij Refractory Plant" and LLC "Fores".
The volume of the Russian proppants market in 2011 was 249 thousand tons, which was 4% lower than the same indicator for the previous year. In 2010 was noted a sharper decline of the market 18%. Then, the volume of consumption was 258 thousand tons.
The leading position in the production of proppants in Russia belongs to LLC FORES, whose volume of production was 263.6 thousand tons, which was 52.8% of the total produced material in 2011. However, a big part of the production of LLC FORES was exported. The second place belongs to the OJSC Borovichskij Refractory Plant, whose share was 33.7% of the total production of proppants in 2011 (168 thousand tons). The third place is taken by LLC Carbo Ceramics Eurasia", producing 38.5 thousand tons, which was 7.7% of the total production for 2011.
Among the foreign companies, manufacturers of proppants, the largest share of imports in physical terms in 2011 was that of "ZHENGDING HAIHUA PETROLEUM PROPPANTS" (92.4%). The second place belongs to CARBO CERAMICS INC with a share of 5.3%. At the third place was "SCHLUMBERGER" with a share of 2.1%.
Among the Russian companies, who import proppants, the largest share belongs to the OJSC SURGUTNEFTEGAS, whose share was 92.4% of the total imports of proppants in 2011. The second place belongs to FC SAHALIN ENERGY INVESTMENT COMPANY LTD with a share of 5.5%. The third place to the representative office of the company SHLIUMBERGE LODZHELKO INC. with a share of 2.1%.
The potential volume of supply of proppants in the next few years will be growing at average pace of 10-12% annually, which is due to the key role of the oil and gas complex, the main consumer of proppants in the energy, in the industry and in the economy of Russia as an overall. The development of new fields, more difficult to access, requires the usage of the hydraulic fracturing method, which means that it will provide enough demand of proppants.
