Past, Present, And Future Of Barite And Other Weighting Materials Since 1981

Since the record year of 1981 through 1985 the tonnage of weighting materials (barite and other heavy minerals) used in drilling fluids has decreased an estimated 49%. As in the past, barite still makes up over 90% of the minerals used for weighting materials in drilling fluid. Domestic production of barite has decreased 69% since 1981 and imported barite has made up over 50% of the total barite consumed since 1982. See Figure 1 for usage of barite. The number of operating grinding plants has decreased from 69 in 1982 to 39 at the end of 1985. With the decrease in demand of weighting materials for drilling fluids and an over capacity of grinding existing, prices for weighting materials have decreased dramatically. Although the American Petroleum Institute has not changed any of the specifications for barite, some users have initiated their own new specifications and have proposed to have them included in the API specifications. The exploration for and development of oil and gas dictates the level of weighting material used in the drilling fluids industry. Most forecasters do not foresee (or predict) increases in the level of drilling until the 90's. The primary or unground barite produced in the U.S. mines has a difficult time competing with imported barite due to the location of the mines. These mines are located in North Central Nevada, with small tonnages being produced in California, Missouri, Illinois, Montana and Washington. The major reason, is the difference in transportation costs from the mines versus ocean freight rates from the foreign ports to the major area of use, the U.S. Gulf. Since 1981, the production of primary barite has decreased from 2,849,000/ST (2,584,596/MT) in 1981 to an estimated 890,000/ ST (807,403/MT) in 1985(1). If it were not for the use of unit trains by some producers the production of primary barite in the U.S. would have probably declined another 20% in 1985. During the same period, of the total amount of barite consumed in the U.S., imported barite ore increased from 417, in 1981 to 65% in 1985. The major exporting countries to the U.S. during this period were China 46.27, Morocco 15.27., Chile 10%, Peru 8.4%, India 7.9%, Mexico 5.4%, Thailand 3.9% and Ireland 2.3%.