Angkur Pailiwal and Jyotika Sood tell an interesting story about the rapidly increasing demand for guar gum for use in the exploitation of shale gas (‘frackgas’) in Down to Earth . It shows the interconnectedness in the world: oil depletion and geopolitical tensions cause investments in exploiting marginal gas deposits in the USA, which increases the demand for guar gum which…

The authors give a vivid account of the changes in the lives of local farmers in Rajasthan: “Resident Ram Karan Charan is planning to buy his first car, while Om Prakash is eyeing investment in real estate in Jaipur. … [Other] farmers across Rajasthan have similar joys to share. …A lesser-known bean, guar (cluster bean) is fetching farmers around Rs 140 per kg—from Rs 15 in 2010-11. In April-May 2012 guar touched Rs 250 per kg.” (https://www.downtoearth.org.in/environment/guar-mine-38658).

Most of the demand for the guar gum is due to the expansion of the exploitation of shale gas —a natural gas trapped in shale formations. Shale gas production in the USA has between 2007 and 2011 doubled every two year and makes up over one third of US gas production. In 2023, US dry shale natural gas production was four times the production level in 2011. It amounted to over 80% of dry gas production in the US. Further growth is expected, despite uncertainties and controversies about long-term well productivity and resources, water use and water pollution and other risks.

The shale gas industry uses the gum in fracking—a process where a mixture of water (95%), sand (4,5%) and guar gum (0,5%) is injected under high pressure into an oil-or gas-bearing rock to fracture it. Guar has the unique thickening, emulsifying and binding properties. Because the, mostly North-American, companies increasingly use horizontal drilling techniques in order to increase the output per wellhead, demand for guar gum is accelerating.

Worldwide, the guar gum market has grown from 709 mln US$ in 2016 to 1116 mln US$ in 2022.In 2011. Use for fracking most important, but guar gum has several others applications. Over three quarter of the market is in the USA and Europe. Northwestern India is by far the largest producer. The acreage under guar in India was 3.2 million hectares (ha) and the country accounted for 90 per cent of the world’s guar production. About 90% of guar gum processed in India is exported, and 90% of the export is used to extract oil and shale gas. “Its countrywide acreage is expected to rise from three million hectares (ha) to four million ha this year” according to a deputy director of the Rajasthan agriculture department.

This rapid development has several consequences for India. Apart from the revenues for the farmers, guar is a leguminous crop and therefore fixes nitrogen, making the soil fertile. If a farmer grows wheat on the same land, productivity is likely to increase by 30%. Secondly, there are significant impacts on agriculture. Guar was traditionally used to feed animals and is eaten as a vegetable. It is also used in the food industry. Earlier, the gum export ratio for oil and gas, and food industries was 60:40, now it has become 90:10 because the food industry is unable to pay the high price. Guar is also eating into the area of crops like cotton in Punjab and Rajasthan. Before 2011, farmers were growing more cotton than guar because of high returns. But skyrocketing guar prices and low maintenance made them change from cotton to guar.

Processes like these tend to create much volatility in production and prices, as they result from complex interconnected global processes. For instance, there are estimates that the cost of the guar gum is now accounting for 30% of the cost of fracking. Gas companies plan to increase the use of guar gum alternatives, such as a flax seed-based gum that is claimed to bring cost down by 40% without compromising quality. Also, new companies in the USA and elsewhere start to produce guar gum. On top of such market and technology driven changes, there is the additional uncertainty of the weather and, on a longer term perspective, the climate. Both less and too much rain is bad for guar and can create big price fluctuations. In a wider sustainable development and resilience perspective, the ‘guar explosion’ does not appear to bring much benefit to the Indian population.

https://www.eia.gov/energyexplained/natural-gas/where-our-natural-gas-comes-from.php