Proppant intensity may increase by 35% in Permian Basin before reaching optimal economics

摘要

TO MAXIMIZE WELL PRODUCTIVITY IN THE CURRENT low oil-price environment, operators in North America have adjusted their completion designs and substantially increased their proppant use. At $50 oil prices, that trend is expected to continue - particularly in the Permian, where our analysis indicates that proppant intensity will rise by 35% before reaching optimal economics. The resulting increase in North American demand - up from 45 million tons in 2016 to 110 million tons in 2018 - will be a boon for suppliers and a key driver of low-cost sand flooding into the Permian.