BARITE (Data in thousand metric tons, unless noted) Domestic Production and Use: Barite sales in 1995 were about the same as 1994's level of 580,000 tons, and the value was unchanged at $21 million. Sales came from five States, with slightly less than 85% of the total coming from Nevada. The second largest producing State was Georgia. About 1,300 tons of ground barite from both domestic production and imports were sold in 1995, as reported by the domestic grinders and crushers. Nearly 90% of the barite sold in the United States in 1995 was used as a weighing agent in oil- and gas-well-drilling fluids, mostly in the Gulf of Mexico region, with much smaller amounts used in the Pacific coast areas. Barite was also used in the production of paint, rubber, glass, and barium chemicals. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Sold or used, mine 448 326 315 583 600 Imports for consumption: Crude barite 841 323 766 1,020 1,050 Ground barite 46 31 38 58 80 Other 10 12 11 13 10 Exports 43 12 18 14 20 Consumption, apparent1/ (crude barite) 1,290 668 1,100 1,640 1,710 Consumption2/(ground and crushed) 1,270 999 1,090 1,250 1,310 Price, average value, dollars per ton, mine 47.57 60.22 61.16 37.22 41.00 Employment, mine and mille/ 400 350 330 350 400 Net import reliance3/ as a percent of apparent consumption 66 52 72 65 65 Recycling: None. Import Sources (1991-94): China, 68%; India, 21%; Mexico, 5%; and other, 6%. Tariff:Item Number Most favored nation (MFN) Non-MFN4/ 12/31/95 12/31/95 Crude barite 2511.10.5000 $1.25/mt $3.94/mt. Ground barite 2511.10.1000 $2.56/mt $7.38/mt. Witherite5/ 2511.20.0000 2.4% ad val. 30% ad val. Oxide, hydroxide, and peroxide6/ 2816.30.0000 2% ad val. 10.5% ad val. Other sulfates6/ 2833.27.0000 0.6% ad val. 4.2% ad val. Other chlorides6/ 2827.38.0000 4.2% ad val. 28.5% ad val. Other nitrates6/ 2834.29.5000 3.5% ad val. 10% ad val. Carbonate6/ 2836.60.0000 2.3% ad val. 8.4% ad val. Depletion Allowance: 14% (Domestic), 14% (Foreign). Government Stockpile: None. Events, Trends, and Issues: The demand for barite, as indicated by the ground and crushed barite consumption figures, increased from that recorded in 1994. The increase occurred following increased petroleum prices and stable gas prices and continued high oil and gas price expectations. The drilling in the Gulf of Mexico for deep natural gas deposits in Louisiana, offshore Louisiana, south Texas, offshore Texas and Oklahoma continues unabated. The demand for jack up drilling rigs and semisubmersible drilling rigs in the Gulf of Mexico was strong. There was an increase of 18% in light, sweet crude futures prices from the last week of December 1994 to the week of May 5, 1995, while natural gas prices increased during the same period by 5%. The rotary drill rig count in the United States for December 23, 1994, was 813 rigs and by May 5, 1995 was down to 664, which was also down from a year ago of 719 rigs. Later in 1995, the rig count rose sharply and was reported at 763 rigs for the week of October 13, but was down from 828 rigs for the week of October 14, 1994. The explanation of this decline in drilling rigs along with good barite consumption is attributed to new technologies.7/ Owing to new seismic technology, fewer wells are required to establish and develop reserves. Other technologies, such as horizontal and directional drilling, have reduced the number of wells needed to access a reservoir effectively. Measurement-while-drilling, logging-while-drilling, increased drill bit effectiveness and durability, new well completion techniques, and new well stimulation services have all combined to increase flow rates, reduce well drilling and maintenance costs, and reduce the number of wells while keeping product flowing profitably at present prices. Prepared by James P. Searls, (703) 648-7724. BARITE Imports for consumption of lower-cost foreign barite surpassed domestic production by more than 120%. Major sources of imported barite are China, India, and Mexico. These countries have high grade deposits, relatively low labor costs, and relatively low (per ton-mile) cost for ocean transportation to the locations of the Gulf coast crusher and grinder plants. China and India have reportedly had problems in their mines, such as floods, diminishing high purity-reserves, and quality control. Often, ocean transportation is lower per ton than rail transportation from Georgia and Missouri to end-use regions. Nevada mines, crushers, and grinders are competitive in the California market and are trying to reenter the Gulf of Mexico market through negotiated railroad tariff reductions. The principal environmental impact of chemically inert barite is the land disturbance normally associated with mining. Mud pits at petroleum well drilling sites that contain some barite are treated according to the chemical content other than barite. The mud in the pits may be dewatered and covered, dewatered and spread over the ground, or transported to special waste handling facilities depending on the base drilling fluid (water or oil). World Mine Production, Reserves, and Reserve Base: Mine production Reserves8/ Reserve base8/ 1994 1995e/ United States 583 600 30,000 60,000 Algeria 45 40 2,000 8,000 Belgium 30 30 1,000 3,000 Brazil 45 45 1,000 2,000 Canada 55 60 11,000 14,600 China 1,500 1,500 38,000 150,000 France 70 75 2,000 2,500 Germany 135 150 1,000 1,500 India 510 400 30,000 32,000 Iran 100 100 NA NA Ireland 60 55 1,000 1,500 Italy 60 50 2,000 2,000 Kazakstan 150 150 NA NA Mexico 150 180 7,000 8,500 Morocco 265 250 10,000 11,000 Romania 105 100 NA NA Thailand 49 60 9,000 15,000 Tunisia 30 30 3,200 5,700 Turkey 140 140 4,000 20,000 United Kingdom 40 40 200 700 Other countries 190 195 21,000 160,000 World total (may be rounded) 4,300 4,250 170,000 500,000 World Resources: In the United States, identified resources of barite are estimated to be 150 million tons, and hypothetical resources include an additional 150 million tons. The world's barite resources in all categories are about 2 billion tons, but only about 550 million tons is identified. Substitutes: In the drilling mud market, alternatives to barite include celestite, ilmenite, iron ore, and synthetic hematite that is manufactured in Germany. However, none of these substitutes has had a major impact on the barite drilling mud industry. e/Estimated. NA Not available. 1/Sold or used by domestic mines - exports + imports. 2/Domestic and imported crude barite sold or used by domestic grinding establishments. 3/Defined as imports - exports + adjustments for Government and industry stock changes. 4/See Appendix B. 5/Per metric ton. 6/Per kilogram. 7/The Oil & Gas Journal, PennWell Publishing Co., Tulsa, OK, v. 93, No. 39, Sept. 25, 1995, pp. 49-55. 8/See Appendix C for definitions. Mineral Commodity Summaries, January 1996