01 April 2013 22:01 [Source: ICIS news]
HOUSTON (ICIS)--The drop in natural gas prices has lowered demand for proppants, US-based Momentive Specialty Chemicals said on Monday.
Proppants are used in hydraulic fracturing, and low prices for the fuel have discouraged companies from drilling, said Craig Morrison, Momentive CEO. Morrison made his comments during an earnings conference call.
US natural gas prices started 2012 near $3/MMBtu and spent much of the fourth quarter below $4/MMBtu
"We are not, however, seeing a real recovery in that market yet," he said.
However, the proppants segment is still profitable, and, longer term, it remains an attractive one for the company, Morrison said.
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