In this report, we examine the global Guargum industry. India is the largest producer of Guarseed in the world due to its unique climatic advantages, representing roughly 90% of global production. Guargum powder, a product developed after processing of seeds from the Guar plant, finds its uses in the food, textile, paper, and oil & gas industries.
Guargum powder is the key ingredient in fracking fluid used in the oil & gas hydraulic fracturing process, acting as a gelling and thickening agent, increasing the viscosity of the fluids associated with the extraction of shale gas and oil. As the oil & gas industries use hydraulic fracking to unlock vast reserves found in shale rock formations, most notably throughout the US, Guar producers have experienced a recent surge of demand. This demand is furthered by the increasing adoption of newer horizontal drilling technologies that utilize more fracking fluid than earlier vertical techniques. Though Guargum is less than 1% by weight of fracking fluid, Guargum costs currently represent 30% of total fracking costs (Figure 1).
Guargum powder is the key ingredient in fracking fluid used in the oil & gas hydraulic fracturing process, acting as a gelling and thickening agent, increasing the viscosity of the fluids associated with the extraction of shale gas and oil. As the oil & gas industries use hydraulic fracking to unlock vast reserves found in shale rock formations, most notably throughout the US, Guar producers have experienced a recent surge of demand. This demand is furthered by the increasing adoption of newer horizontal drilling technologies that utilize more fracking fluid than earlier vertical techniques. Though Guargum is less than 1% by weight of fracking fluid, Guargum costs currently represent 30% of total fracking costs (Figure 1).