An Industry Outlook for Frac Sand Companies

In the rapidly evolving landscape of the energy sector, Pontotoc Sand & Stone finds itself at the forefront of the frac sandindustry, a market that continues to capture the attention of global investors and key players. Delve into the statistics of 2023 by reading this article, and take a look forward to 2024 and beyond.

The Current Industry Outlook for Frac Sand Companies

According to a LinkedIn study, the valuation of the worldwide frac sand market reached $53,908.61 million at the beginning of 2024, and it is projected to experience a compound annual growth rate (CAGR) of 4.52% throughout the forecast period, reaching a anticipated value of $70,276.88 million by the year 2027.

What Is Hydraulic Fracturing and Frac Sand?

The hydraulic fracturing process was created nearly 70 years ago. It involves horizontal drilling technology opening shale reserves thousands of feet below the ground. Hydraulic fracturing uses drill bits that dig down thousands of feet, followed by a 90-degree turn through a horizontal shale layer. Frac sand, water, and other chemicals are added into fractures of the shale layer, releasing liquid petroleum, which flows up the system for collection.

Frac sand is suspended in fluid and injected into gas and oil wells under high pressure. Once fluid pressure opens fractures, sand grain flows into the spaces. This material is crush-resistant, making it optimal for hydraulic fracturing. Frac sand is pure quartz material of a round and hard uniform size. Specifically, it’s processed from high-purity sandstone, which differs from other types of sand. Other sand grains are a mixture of several types of minerals, which are less durable than quartz.

Frac sand is washed, sorted, and dried before it can be shipped after hydraulic fracturing. Wisconsin is the frac sand capital of the country, and it’s mined from sandstone formations in the central and western parts of the state.

Economic Benefits of Frac Sand Mining

Frac sand mining technology has exponentially increased natural gas and oil production nationwide, especially in geological formations that cannot allow natural flow. During a worldwide sand crisis, defining the economic benefits to show how frac sand significantly boosts the entire hydraulic fracturing operation is important. Here are a few positives of the proppant agent deployed by frac sand companies:

The Positive Mining Process

Frac sand has proved to be invaluable in the process of removing valuable minerals from the earth. The added natural gas and oil production increase pay levels far above the fracking business’s average pay level. The Wisconsin frac-sand mining industry has already experienced economic boosts.

Economic Vitality Through Recession

Thanks to frac sand, the industry is experiencing economic vitality and evolving away from land-based operations. The abundance of natural landscapes and resources makes Wisconsin a hotbed for this process. Businesses using frac-sand mining have remained prosperous through recessions, leaving them open to focus on long-term planning operations.

Frac sand companiesneed to know every potential factor that affects current industry prices. Learn more.

Sand Prices

The Global Sand Shortage: What’s Happening?

Did you know the only material we use more than water is sand? But before we jump in, it’s important to understand a few things:

We are currently experiencing a global sand crisis
The world’s industries use 50 billion metric tons of sand annually
Sand is key for concrete, glass, and hydraulic fracturing production

Global Urbanization

Due to global urbanization, sand has steadily decreased in availability over the last two decades. The global rate of sand use has tripled in that period, surpassing the natural rate of sand replenishment from weathering.

Cement is a vital construction material requiring sand, and the UN estimates that 4.1 billion tons of cement are produced annually. Even though sand usage is 12 times more than cement, our world is running short on this precious and overlooked resource. There is currently no accurate global sand use monitoring, but the UN could soon create regulations to preserve the natural resource. Because of the worldwide shortage and other external factors, the sand industry has seen a significant jump in pricing this year.

An Industry Outlook for 2024

Looking ahead to 2024, Pontotoc Sand & Stone anticipates further evolution within the industry for frac sand companies. Our strategic approach aligns with key factors shaping the market:

Technological Innovations: Continued investment in cutting-edge technologies to enhance efficiency and reduce environmental impact.
Regulatory Compliance: Proactive measures to adapt to evolving regulations and maintain a competitive edge in the industry.
Global Energy Trends: Navigating the impact of global energy trends, including the push towards renewable sources, to identify opportunities in emerging markets.
Infrastructure Investments: Pontotoc Sand & Stone recognizes the importance of investing in infrastructure, ensuring the seamless supply of frac sand to critical fracking regions.
Environmental Responsibility: Ongoing commitment to sustainable practices, addressing environmental concerns, and contributing to a responsible future for the industry.

Save Big on Frac Sand Prices Pontotoc’s Loading Process

Discover Pontotoc’s revolutionary truck loading process, designed to revolutionize frac sand handling and drive cost savings. Our automated system accelerates loading, completing the task in just seven minutes, reducing downtime, and cutting overall product costs. Upon arrival, the truck’s license plate triggers cargo manifest retrieval, directing the driver to the appropriate building based on mesh requirements.

Unlike traditional methods, our facility utilizes machinery for rapid, driver-friendly sand loading, enhancing efficiency. The loaded truck undergoes weighing at our check station, facilitating a seamless process from order to dispatch. Pontotoc’s system ensures safety, convenience, and efficiency throughout the entire loading procedure.

Pontotoc Sand & Stone: A Tier 1 Frac Sand Provider

At Pontotoc, high-quality silica sand is the secret to successful fracking. Frac sand is the most critical element in fracture mining, so we guarantee a consistent, clean proppant that soars above industry standards. Reach out to our team today for the best sand grain material in the industry.