A Pragmatic Approach for Promoting Local Proppant in International Business

Abstract

Abstract Because hydraulic fracturing applications are booming, the market availability of proppants plays a more significant role in the global oilfield economy. As a result, the demand for commercially manufactured proppants is increasing, fueling the construction of new production facilities around the world. Currently, there are only a handful of well-known suppliers of manufactured proppants that dominate the business globally. This paper discusses a systematic approach to highlight and promote local proppant suppliers in international markets outside North America. This paper discusses how local suppliers from different regions within the Eastern Hemisphere were contacted for prequalification samples of their proppants. Submitted proppant samples were categorized, and a quality control (QC) method was established. Tests were performed as per ISO 13503-2 (2006) to pass the quality check. Comparisons, in terms of crush resistance and conductivity, were made between the products of standard international proppant suppliers and the local suppliers. Consistency and repeatability of the samples from different lots were measured; eventually, some of the vendors were certified to be a regular proppant supplier. A cost analysis was also performed to demonstrate how using local proppant could be beneficial. This paper demonstrates in detail the procedure and testing cycle for establishing a local supplier in the Eastern Hemisphere, and then the global marketplace. A case study is included that illustrates the volume of proppant shipped for a specific area of field applications and the cost savings gained. A significant economic advantage was achieved because of the local availability of standard-quality manufactured proppant. The promising results of this study should encourage local suppliers to invest into the business and help convince the industry that more economic alternatives are available to meet the market demand for manufactured proppants.