Increased proppant use
In addition to rising rig counts, another contributor to increased proppant demand has been the increased amount of proppants used per horizontal well.
As the chart above shows, proppant consumption per horizontal well has been rising significantly, driving demand. Total proppant consumption across basins also rose significantly in 3Q16.
As we discussed in the previous article of this series, the re-fracking of existing older wells and the huge DUC (drilled but uncompleted) well backlog offer huge frac sand demand potential.