Market Research Report

Saudi Arabia Proppants Market Research Report Forecast : (2024-2030)

Saudi Arabia Proppants Market Report - By Type (Ceramic, Resin Coated, Frac Sand), By Application (Shale Gas, Coal-bed Methane, Tight Gas, Others), and Others... Read more

  • Energy
  • Apr 2024
  • 112
  • PDF, Excel, PPT

Market Definition

Proppants are granular materials, mainly ceramic or sand particles, that are used in hydraulic fracturing (fracking) operations in the oil and gas industry. These materials are injected into fractures in rock formations to hold them open, allowing oil or natural gas to flow more freely to the wellbore during extraction. Proppants serve to enhance the permeability of underground formations, facilitating the extraction of hydrocarbons from reservoirs.

Market Insights & Analysis: Saudi Arabia Proppants Market (2024-30):

The Saudi Arabia Proppants Market size is estimated to grow at a CAGR of around 6.12% during the forecast period, i.e., 2024-30. The presence of huge oil & gas reserves in the country, along with the discovery of new oil & gas wells, would push the requirement for proppants during the forecast period. According to the Organization of Petroleum Exporting Countries (OPEC), in 2022, Saudi Arabia consisted of around 17% of the world’s proven petroleum reserves, including 267,192 million barrels of crude oil reserves. Hence, the demand for proppants is estimated to rise considerably in Saudi Arabia with the development of the oil & gas industry during 2024-2030.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 6.12%
Region Covered Central, East, West, South, North
Key Companies Profiled Badger Mining Corp., Baker Hughes Inc., Carbo Ceramics Inc., Hexion Inc., Saint-Gobain Proppants Inc., Sibelco Group, Schlumberger Limited, Halliburton Corporation, Delmon Group and others 
Unit Denominations USD Million/Billion

 

In addition to this, the growing investments in the country’s pipeline infrastructure for oil & gas by companies, including Saudi Aramco, SIPCHEM, etc., are expected to notably surge the demand to incorporate proppants into the newly constructed infrastructure to ensure substantial returns, further enhancing the market size & volume. Moreover, rising hydraulic fracturing activities and surging inclination to produce domestic gas to power the electric grid are projected to boost the demand for proppants during the forecast period.


Saudi Arabia Proppants Market Research Report Forecast : (2024-2030)

In addition, Saudi Arabia, along with other significant oil-producing nations such as Kuwait, Oman, etc., enforced an agreement named the OPEC+ agreement, which led Saudi Arabia to curtail its oil production. There was an imbalance between global oil supply & demand caused by an excess of petroleum in the market due to increased oil & gasoline production by countries like the United States & OPEC members. Hence, the rising exploration and production (E&P) activities across the country would necessitate proppants in hydraulic fracturing to extract oil and gas from underground reservoirs, which is further expected to enhance the market size during 2024-2030.

Saudi Arabia Proppants Market Driver:

Increasing Exploration of Shale Gas to Enhance Market Growth – During the historical years, Saudi Arabia, traditionally reliant on conventional oil reserves, is now seeking to diversify its energy sources. Exploring shale gas reserves offers an opportunity to supplement its energy portfolio with a domestically sourced alternative to conventional oil and gas. Shale gas extraction relies heavily on hydraulic fracturing, also known as fracking. This process involves injecting a mixture of water, sand (proppants), and chemicals into shale formations at high pressure to create fractures and release trapped gas. For instance,

  • In 2021, Saudi Aramco’s awarded a contract worth USD 10 billion for its giant Jafurah project finally fired the starting gun to develop what is thought to be the world’s biggest shale gas field, and the Kingdom is estimated to be sitting on the fifth largest shale gas reserves in the world.

Hence, the successful exploration and production of shale gas require significant infrastructure development, including drilling rigs, well pads, water supply systems, and transportation networks. The establishment of such infrastructure drives demand for proppants and other materials and services related to oil and gas operations. As shale gas exploration advances in Saudi Arabia, the demand for proppants is expected to increase to support fracking operations in the forthcoming years.

Saudi Arabia Proppants Market Opportunity:

Surging Foreign Investments in Infrastructural Development to Offer Lucrative Opportunities – The vast reserves of shale gas in the country have attracted quite a few foreign energy giants to invest in the country’s reserves and earn substantial profits. The increasing investments in shale gas exploration and transportation have been key areas of development. This is predicted to simultaneously offer lucrative growth possibilities for the Saudi Arabia Proppants Market in the forthcoming years. For instance,

  • In 2023, China’s Sinopec and French supermajor TotalEnergies are among the key companies in talks with Saudi Aramco for potential infrastructural investments in the Saudi Arabian oil giant’s massive Jafurah unconventional gas development. Aramco announced its development approach for the around USD 100 billion Jafurah project, which is expected to produce nearly 2 billion cubic feet per day of gas by 2030.

Saudi Arabia Proppants Market Challenge:

High Cost of Ceramic Products to Impede Market Growth – Oil and gas companies operating in Saudi Arabia face budget constraints, particularly during periods of low oil prices or economic downturns globally. Ceramic proppants are often more expensive than traditional sand proppants due to their superior strength and conductivity properties. In a cost-conscious market environment, operators opt for cheaper alternatives to minimize drilling and completion costs. This cost sensitivity limits the demand for ceramic proppants, impacting their market growth & expansion in Saudi Arabia.

In addition, the presence of high-cost ceramic proppants in the market exerts pricing pressure on other proppant types, including sand and resin-coated proppants. Manufacturers and suppliers of sand proppants, which are typically more cost-effective, may face challenges in maintaining competitive pricing against ceramic proppants. This competitive pricing pressure could impact profit margins and hinder market growth for all types of proppants in Saudi Arabia.

Saudi Arabia Proppants Market Trend:

Environmental Sustainability Increasingly Shaping the Proppants Market in Saudi Arabia – Hydraulic fracturing operations require large volumes of water, which can strain local water resources, especially in arid regions like Saudi Arabia. Concerns about water scarcity and competition for water resources from other sectors, such as agriculture and municipal use, highlight the need for more efficient water management practices in fracking operations. As a result, there is growing interest in technologies and proppants that minimize water usage or enable the use of alternative water sources, such as treated wastewater or brackish water, reducing the environmental impact of hydraulic fracturing.

Furthermore, fracking operations contribute to air pollution through emissions of volatile organic compounds (VOCs), methane, and other pollutants. Controlling air emissions from drilling rigs, well pads, and associated equipment is critical to reducing environmental impact and addressing public health concerns. Proppants that support efficient wellbore integrity and production optimization help minimize methane leaks and fugitive emissions, improving air quality and mitigating climate change impacts. Hence, with the growing environmental sustainability in the country, the requirement for proppants is anticipated to increase in the coming years.

Saudi Arabia Proppants Market (2024-30): Segmentation Analysis

The Saudi Arabia Proppants Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. According to the analysis, the market has been further classified as:

Based on Type:

  • Ceramic
  • Resin Coated
  • Frac Sand

The Frac Sand segment holds a major market share and is expected to attain the highest growth rate in the Saudi Arabia Proppants Market during the forecast period, owing to the increasing local production of frac sand for the fracking of shale gas. The abundance of natural resources presents a cost advantage for frac sand production compared to other types of proppants, such as ceramics or resin-coated sands, which often need to be imported at higher costs in Saudi Arabia.

In addition, since the frac sand is more cost-effective compared to alternative proppants, it makes it a preferred choice for hydraulic fracturing operations, particularly in applications where high volumes of proppants are required. This relatively low cost of frac sand has proved to be beneficial, especially during periods of low oil prices, as it helps to reduce overall drilling and completion expenses. Therefore, the Frac Sand segment is anticipated to have a significant impact on the growth of the Saudi Arabia Proppants Market in the forecast period.

Based on Application:

  • Shale Gas
  • Coal-bed Methane
  • Tight Gas
  • Others

Shale gas exploration and production in Saudi Arabia have gained significant traction in recent years due to the country's vast shale gas reserves and the increasing demand for natural gas as a cleaner alternative to traditional fossil fuels. As the Saudi government seeks to diversify its energy sources and reduce reliance on oil exports, shale gas has emerged as a key focus area for development, which is anticipated to present a great growth opportunity for the market during 2024-2030. Moreover, advancements in proppant technology, such as the development of engineered proppants with enhanced conductivity and durability, are further bolstering market growth. These innovations aim to improve the efficiency and effectiveness of hydraulic fracturing operations in extracting shale gas from challenging reservoirs and are anticipated to propel the market size in the forthcoming years as well.

Gain a Competitive Edge with Our Saudi Arabia Proppants Market Report

  1. Saudi Arabia Proppants Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. Saudi Arabia Proppants Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The Saudi Arabia Proppants Market is expected to grow at a compound annual growth rate (CAGR) of around 6.12% over the forecast period.

   A. The increasing exploration of shale gas is a prominent factor expected to drive the Saudi Arabia Proppants Market during 2024-30.

   A. Badger Mining Corp., Baker Hughes Inc., Carbo Ceramics Inc., Hexion Inc., Saint-Gobain Proppants Inc., Sibelco Group, Schlumberger Limited, Halliburton Corporation, Delmon Group and others are the top companies in the Saudi Arabia Proppants Market.

   A. Frac Sand held the largest share of the Saudi Arabia Proppants Market.

   A. Increasing environmental sustainability is one of the key trends shaping the growth of the Saudi Arabia Proppants Market.

   A. Surging foreign investments in infrastructural development is one of the growth opportunities driving the Saudi Arabia Proppants Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Saudi Arabia Proppants Market Supply Chain Analysis
  5. Saudi Arabia Proppants Market Regulations, Policies, Product Benchmarks
  6. Saudi Arabia Proppants Market Trends and Developments
  7. Saudi Arabia Proppants Market Dynamics
    1. Drivers
    2. Challenges
  8. Saudi Arabia Proppants Market Hotspot & Opportunities
  9. Saudi Arabia Proppants Market Analysis, 2019-2030F
    1. Market Size & Analysis
      1. Revenues (USD Million)
      2. Quantity Sold (Kilotons)
    2. Market Share & Analysis
      1. By Type
        1. Ceramic- Market Size & Forecast 2019-2030F, (Kilo Tons)
        2. Resin Coated- Market Size & Forecast 2019-2030F, (Kilo Tons)
        3. Frac Sand- Market Size & Forecast 2019-2030F, (Kilo Tons)
      2. By Application
        1. Shale Gas- Market Size & Forecast 2019-2030F, (Kilo Tons)
        2. Coal-bed Methane- Market Size & Forecast 2019-2030F, (Kilo Tons)
        3. Tight Gas- Market Size & Forecast 2019-2030F, (Kilo Tons)
        4. Others- Market Size & Forecast 2019-2030F, (Kilo Tons)
      3. By Region
        1. North
        2. East
        3. West
        4. South
        5. Central
      4. By Competitors
        1. Competition Characteristics
        2. Market Share & Analysis
  10. Saudi Arabia Proppants Market Key Strategic Imperatives for Success & Growth
  11. Competition Outlook
    1. Company Profiles
      1. Badger Mining Corp.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Baker Hughes Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Carbo Ceramics Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Hexion Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Saint-Gobain Proppants Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Sibelco Group
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Schlumberger Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Halliburton Corporation
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Delmon Group
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Others
  12. Disclaimer


Saudi Arabia Proppants Market Segmentation