Fracking Industry Frantically Seeking Reliable Guar Substitutes

Posted by Leigh Dow on Thu, Aug 16, 2012

As a leading provider of power equipment in the oil and gas industry, Depco is always monitoring industry trends.  One that caught our eye recently is the ingredient shortage in the fracking industry. 

Who would have thought a little bean smaller than the size of a penny would be so crucial in the fracking industry? Guar, a bean primarily grown in India and a key ingredient used in hydraulic fracturing, has suddenly skyrocketed in value due to a shortage, causing quite a commotion within the industry. 

Hydraulic fracturing, also known as “fracking,” is a drilling technology to extract oils and natural gas from deep wells, immensely modernizing the energy industry by opening up massive new fields for production. The guar bean is a key ingredient used in fracking. Oil and gas companies are rushing to find a new substitute for it, as it has drastically increased in price. In some cases nearly doubling, which is severely impacting production budgets. 

The reason guar is so crucial in the fracking industry is due to its extract which produces a gel when mixed in the fracking fluid to distribute “proppant” to hold open cracks in shale rock when it is fracked. Now, with the guar price increases, new ingredients are being sought in order to create a similar gel at a more affordable price.

According to Routers reporter Braden Reddall, two Texas lawyers have already jumped on board investing in guar substitutes. Within just one day of each other last June, both lawyers filed trademark applications for “AquaPerm” and “PermStim,” substitutes for guar, materialized in the labs of Baker Hughes Inc. and Halliburton Co., which hit the market in the second quarter. Though guar prices have now somewhat dropped, substitutes are still in high demand as oil services companies are desperately trying to stabilize costs. 

Baker Hughes Inc. and Halliburton Co. are not the only companies exploring guar substitutes. Nabors Industries Ltd, Trican Well Service and Ashland Inc. are also exploring guar alternatives. There is little room for error for these effective alternatives as the wells being drilled can cost up to $8 million each. However, Brian Uhlmer, a once chemical engineer and now head of energy research at Global Hunter Securities, explained his belief that the substitutes are up to the job.  It is unclear where guar prices will head next, but many companies do not want to take their chances. 

Depco can’t solve the guar bean shortage, but we can mitigate power shortages. Depco supplies high quality power solutions. Contact us for a quote today!

 

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*Sources: Braden Reddall, Routers; RoutersTV

Tags: Oil, Used Power Equipment, fracking, backup power, Oil & Gas, backup generator

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