With the boom in production of proppant, or frac-sand, used in the hydraulic fracturing process for oil and natural gas extraction, railroads are having a hard time keeping up with the demand for transporting this essential ingredient. Prices of frac-sand continue to rise even as the proppant industry sees double-digit annual increases in production.
Hydraulic fracturing has been a boon to domestic energy production in the United States. The price index for frac-sand reached its highest level since 2012 in October, according to a Moody’s Investors Service report cited by Oil & Energy Insider. Moody’s said proppant production could be slowed if the price of oil stays below $80 a barrel, but other groups are forecasting continued robust growth in North America.
Oil & Energy predicted annual double-digit increases for the foreseeable future because of increased demand abroad and fracking processes that are using an extra shot of frac-sand to increase oil and gas extraction. PacWest Consulting Partners expects 23-percent annual growth through at least 2016.
As a consumer, transporter or producer of proppant, are you equipped to meet your frac-sand storage needs?
At Alaska Structures, we have the fabric building industry’s top engineers and designers, and the proof is in our products. Click to learn more about the technology and engineering that goes into every Alaska Structures portable building. Or click to learn more about our valuable design services. You can also read through our FAQ section for more information.
To learn more, speak to a building specialist by calling +1-907-344-1565, email firstname.lastname@example.org, or complete our contact us page.